Upheld: Goods and services under S75 complaint against BMW Financial Services (GB) Limited

Decision detail

Summary

Mrs B purchased a used car via hire purchase with BMWFS in September 2023 for use as a driving instructor's vehicle. The car experienced multiple mechanical failures and was repaired seven times under warranty, including three vibration damper failures within two years. After a final breakdown in January 2026, Mrs B complained that the car was not of satisfactory quality. BMWFS rejected the complaint, arguing that learner driver behaviour caused the failures. The ombudsman upheld the complaint, finding that while learner driving may have contributed to some issues, the car was not sufficiently durable for its intended purpose and breached the implied term of satisfactory quality under the Sale of Goods Act 1979. BMWFS was directed to end the agreement, refund all payments and costs, pay interest and compensation, and remove adverse credit file information.

The Ombudsman's reasoning

Under section 14 of the Sale of Goods Act 1979, there is an implied term that goods must be of satisfactory quality at the time of sale. While the car was used (not brand new), it should still be reasonably durable. Although the driving style of learner drivers may have contributed to some issues (clutch and emissions problems), the vibration damper failing three times in two years when it should last 60,000-100,000 miles indicates the car was not sufficiently durable. Even accounting for the intensive use and learner driver impacts, a car should normally last longer than two years without three breakdowns. The car was also not fit for the purpose Mrs B disclosed (driving instruction), as she had informed the dealership of this use at the time of sale.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website