Not upheld: Goods and services under S75 complaint against BMW FINANCIAL SERVICES (GB) LIMITED

Decision detail

Summary

Mr M purchased a brand-new BMW car on a 48-month hire purchase agreement in December 2022 and complained in November 2025 about repeated wheel and tyre failures, including five cracked alloy wheels and four tyre failures with sidewall bulging. He argued the vehicle was not of satisfactory quality due to these defects. BMWFS rejected the complaint, stating there was no evidence of a manufacturing fault, and offered a goodwill gesture of £628 plus £150. The ombudsman found that whilst the failures were frustrating, the evidence did not establish an inherent manufacturing defect; instead, the damage pattern was consistent with external impact damage from normal use, as alloy wheels and low-profile tyres are inherently susceptible to such damage. The ombudsman upheld BMWFS's position and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under a hire purchase agreement must be of satisfactory quality at the point of supply. For a new car, a reasonable person would expect freedom from defects for a considerable time and durability of components. However, the ombudsman found that whilst Mr M experienced multiple wheel and tyre failures, the evidence did not establish an inherent manufacturing defect. The ombudsman gave significant weight to TSARA's specialist assessment, which found no manufacturing defect, and noted that alloy wheels and low-profile tyres are inherently susceptible to damage from external factors such as potholes, kerbs, and road defects. The ombudsman concluded that the damage pattern was consistent with external impact damage during normal use rather than an inherent defect present at supply, and that the absence of a documented impact event does not establish a manufacturing defect.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website