Ms H – Complaint Against BMW Financial Services

Ms H bought an approved used ex-demonstrator BMW X6 M50d from a BMW dealership by way of a regulated consumer finance agreement.

Around a year later and having had the car serviced in accordance with the manufacturer’s service schedule, the engine suffered catastrophic failure. Subsequent diagnostic testing revealed the car had suffered “flood damage” which Ms H contended was not caused by her or within her ownership.

Further investigations revealed that this had occurred prior to sale and had resulted in the engine having been rebuilt.

Ms H claimed she had been mis-sold the car and should have been informed of the engine damage before she bought it. BMW Financial Services disagreed, stating that they were not under any obligation to disclose this type of repair, the remanufactured engine was to the manufacturers standard and had been driven for over 18,000 miles.

Following our submissions in regard to misrepresentation, breach of contract and omission under the consumer protection from unfair trading regulations, the Financial Ombudsman Service upheld the complaint.

The finance company was ordered to unwind the finance agreement, refund the deposit and the finance instalments paid after the engine failure, along with standard interest and compensation for stress and inconvenience.