Not upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against CA AUTO FINANCE UK LTD

Decision detail

Summary

Mrs L purchased a used car (8 years old, 53,289 miles) under a hire purchase agreement with CA Auto Finance in August 2024. In March 2025, the car developed engine problems requiring extensive repairs, with diagnostics revealing timing chain failure and internal engine damage caused by lack of servicing since 2019. Mrs L complained that the car was of unsatisfactory quality and that she had been told it had a recent service history. The ombudsman found that while the car required significant repairs, it was not of unsatisfactory quality because it had not been properly maintained prior to supply and Mrs L either knew this or had reasonable opportunity to ask about it before entering the agreement. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies goods must be of satisfactory quality. While acknowledging the car required extensive repairs, the ombudsman found that a reasonable person would expect a car of 8 years old and 53,289 miles that had not been serviced for 5 years to require more wear and tear and maintenance sooner than a well-maintained vehicle. The ombudsman concluded that the timing chain failure developed over time due to lack of maintenance rather than being present at point of supply, as Mrs L drove nearly 3,000 miles without symptoms. The ombudsman found Mrs L either knew the car had not been well maintained or had reasonable opportunity to ask about this before entering the agreement, particularly given the collections checklist specified the service book was provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website