Upheld: goods not of satisfactory quality; failed repair; defective vehicle complaint against MotoNovo Finance Limited
Financial Ombudsman decision DRN-6352391 of 2026-05-22T00:00:00+00:00. goods not of satisfactory quality; failed repair; defective vehicle complaint against MotoNovo Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6352391 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | MotoNovo Finance Limited |
| Product | hire purchase agreement |
| Claim type | goods not of satisfactory quality; failed repair; defective vehicle |
| Outcome | Upheld |
| Remedy | MotoNovo must: (1) Arrange collection of the car at no cost; (2) End the agreement with nothing further to pay; (3) Update credit file to remove adverse data and show agreement as settled; (4) Pay £350 for distress and inconvenience; (5) Refund all payments made from November 2025 to settlement; (6) Refund £221.99 for diagnostic costs; (7) Refund original deposit of £494.07. All refunds subject to simple interest at Bank of England base rate plus 1% from date paid until settlement. |
Summary
Mrs S purchased a nine-year-old car through a hire purchase agreement with MotoNovo in February 2024. Shortly after acquisition, the car developed faults with door locks and exhaust gas pressure, which were repaired following an independent inspection in August 2024. In October 2025, the same EGR cooler component required replacement again, indicating the repair had failed. The ombudsman upheld the complaint, finding the car was not of satisfactory quality due to the recurring defect linked to an inherent fault present at supply. MotoNovo was ordered to allow Mrs S to reject the car, refund payments from November 2025 onwards, diagnostic costs, and the original deposit, plus £350 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that although the car was used for over two years and 17,000 miles, the recurring nature of the faults was key. The October 2025 diagnostic report showed the same EGR cooler component needed replacement again, despite being replaced following the August 2024 inspection. The mechanic's statement that a properly replaced EGR cooler should last 100,000 miles, combined with the fact that only 10,000 miles had been driven since the repair, supported the conclusion that the repair had failed and the fault was linked to an inherent defect present at supply. Therefore, the car was not of satisfactory quality under the Consumer Rights Act 2015, and rejection was the fair remedy.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MotoNovo Finance Limited, all decisions | 559 | 45% |
Source
Read the original decision on the Financial Ombudsman Service website