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

Decision detail

Summary

Mr C purchased a five-year-old used car with 54,343 miles through a hire purchase agreement with MotoNovo Finance Limited in October 2022 for £33,400. The car required engine replacement in early 2023 and subsequently developed EGR system problems in April 2024, leading Mr C to complain the car was not fit for purpose and of unsatisfactory quality. MotoNovo rejected the complaint, and the FOS investigator upheld this decision. The ombudsman found the car was of satisfactory quality, relying on an independent report concluding the EGR fault was due to ordinary wear and deterioration from the car's age, mileage, and previous service history, not a defect present at sale. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. For a used car of this age and mileage, a reasonable person would expect some wear and need for repairs, but also reasonable durability. The key evidence was the independent report which clearly concluded the EGR fault was due to ordinary wear and tear, not a defect present at sale, and that the car had been durable since the engine replacement. The previous service history (overdue services in 2019 and 2020) was a contributing factor to the EGR problems. The two faults (engine and EGR) were separate and unrelated. The ombudsman concluded the car met the standard of satisfactory quality for a five-year-old vehicle with 54,343 miles.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website