Not upheld: Goods and services under S75 complaint against Tandem Motor Finance Limited

Decision detail

Summary

Miss R purchased a used car over 10 years old under a hire purchase agreement with Tandem Motor Finance in September 2023 for £10,395. The car developed persistent engine management and diesel particulate filter faults within weeks of supply, which were subject to multiple repair attempts. An independent engineer's report in May 2024 concluded the faults were present at point of sale and recommended rejection. However, Miss R continued to use the car for over 14,000 additional miles and did not complain to Tandem Motor Finance until the engine failed in June 2025 due to a seized turbocharger with no engine oil. The ombudsman found the car was of satisfactory quality at supply and that the engine failure resulted from lack of maintenance rather than pre-existing defects, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman acknowledged persistent faults with the engine management light and diesel particulate filter from shortly after supply, but found that the car was driven over 30,000 miles between supply and engine failure, passed two MOT tests, and the final engine failure was caused by lack of maintenance (no oil) rather than defects present at supply. The ombudsman was not persuaded the turbocharger fault existed at point of supply, as the car could not have been driven 30,000 miles with a seized turbocharger. Critically, Miss R did not complain until after the engine failure despite having an inspection report in May 2024 recommending rejection, yet she continued using the car for another 14,404 miles.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website