Not upheld: unsatisfactory quality of goods / defective vehicle complaint against MotoNovo Finance Limited

Decision detail

Summary

Miss N purchased a used car (five years old, 54,000 miles) under hire purchase with MotoNovo in February 2023 for £13,995. In September 2025, after approximately 15,000 additional miles and two and a half years of ownership, the vehicle experienced catastrophic engine failure. Miss N complained that the car was of unsatisfactory quality and had been sold with an outstanding safety recall. MotoNovo commissioned an independent inspection which found the engine fault developed progressively through wear, age-related deterioration, and lack of maintenance (the vehicle was over 3,750 miles overdue for servicing). The ombudsman found insufficient evidence the fault was present at supply, noting the vehicle had passed recent MOTs and the recall was preventative rather than indicating an inherent defect. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under hire purchase must be of satisfactory quality at the point of supply. For a used car, satisfactory quality is assessed considering age, mileage, and price. Since the fault was identified more than six months after supply, the burden was on Miss N to demonstrate the fault was present at supply. The independent inspection provided professional evidence that the timing chain and engine components deteriorated gradually during Miss N's ownership through wear and inadequate maintenance, rather than being present at supply. The vehicle had passed recent MOTs and the recall was preventative in nature (requiring inspection, not automatic replacement). The lack of timely servicing materially affects engine component lifespan. The evidence more strongly supported age-related deterioration and maintenance issues rather than an inherent fault at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website