Not upheld: goods not of satisfactory quality under conditional sale agreement complaint against Moneybarn No.1 Limited trading as Moneybarn

Decision detail

Summary

Miss O purchased a used van (5 years old, 97,900 miles) via conditional sale agreement with Moneybarn in July 2024. Shortly after supply, the van required a split air hose replacement under warranty. In July 2025, Miss O reported the van needed engine replacement at an estimated cost of £11,000 and complained it was not of satisfactory quality. Moneybarn arranged an independent inspection which concluded the engine faults were not present or developing at the point of supply. The ombudsman found the independent inspection report more persuasive than Miss O's evidence and concluded the engine faults resulted from wear and tear on a used vehicle rather than a satisfactory quality breach. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 which implies goods must be of satisfactory quality at point of supply. For a used van of 5 years old with 97,900 miles, the standard expected is lower than for a new vehicle. While the split air hose repair shortly after supply suggested a potential quality issue, it was successfully repaired and accepted by Miss O. For the engine faults occurring after one year of ownership, the burden shifted to Miss O to demonstrate they were present or developing at supply. The independent expert inspection was the most persuasive evidence and concluded the faults were not present at supply but resulted from wear and tear. Miss O's own report did not confirm when the faults originated or why, making it less persuasive. The ombudsman concluded that requiring engine replacement after approximately 6,700 additional miles on a used van was consistent with wear and tear rather than a satisfactory quality breach.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website