Upheld: Goods and services under S75 complaint against Startline Motor Finance Limited

Decision detail

Summary

Mrs W purchased a used car via hire purchase with Startline Motor Finance Limited in December 2024 for £30,250. The car was over three years old with 21,179 miles. Within six months and after driving only 6,000 additional miles, the engine management light illuminated and diagnostic testing revealed significant faults with the turbocharger and EGR system requiring replacement. The ombudsman upheld Mrs W's complaint, finding the car was not of satisfactory quality at point of supply because the faults were likely present or developing when supplied, given their nature and timing. Startline was instructed to repair the car or reimburse repair costs, pay £200 for distress and inconvenience, reimburse diagnostic costs, and remove adverse credit file information.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods supplied under consumer credit contracts to be of satisfactory quality, with durability being a relevant factor. Given the car's age (over three years), mileage (21,179 miles), and price (£30,250), a reasonable person would expect some wear but not significant component failure within six months and 6,000 additional miles. The diagnostic and independent inspection reports confirmed faults to the turbocharger and EGR system. The ombudsman found that while pre-sale checks showed no issues, these general checks do not preclude underlying mechanical problems being present or developing at supply. The nature and timing of the faults (within six months, with minimal additional mileage, on a car with only two prior services) indicated the faults were likely present or developing at point of supply, meaning the car was not of satisfactory quality.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website