MotoNovo Finance took more than they should

delirious

Hi all,

Looking for some advice here...

I bought a car a month ago and it is on HP Finance with a company called MotoNovo Finance. When I bought the car, I paid £1500 deposit and the repayments were set at £223/m.

MotoNovo tried to take the first direct debit payment yesterday but it was returned unpaid because there was insufficient funds in the bank account. However, this is because they tried to take a payment of £373 (£150 more than the agreed payment).

I have sent them an email regarding this and asking someone to get back to me ASAP but I'm just wondering, is it normal for these finance companies to charge more on the first payment (say an admin fee or something)?

I can't locate the credit agreement at the moment (but then I can't make too much noise looking for it with it being midnight), but I'm sure I would've noticed if it said they would take an extra £150 off me in the first month.

sharpy2010

I always thought the final payment had a small extra amount on it, but I didnt think the first one did. As always though, you'll need to consult the actual contract when you are able to lay hands on it, to see exactly what the deal is.

SeanG79

It will be the credit facility fee/documentation fee (different banks call it different things) that they will have attempted to take with the 1st direct debit.

Your final direct debit will then also include the completion fee/option to purchase.

ihateyes

Well on their website i just searched a car, and it didnt indicate a higher first payment......

1st payment £174.76
22 payments after of £174.76
final payment of £333.76.

there is a fees column of £358, but i imagine this is spread over the 23 payments.

SeanG79

I dont specifically work with Motonovo, but I do work with several other vehicle finance providers (non-manufacturers finance). There is ALWAYS a documentation fee or facility fee (unless this is specifically waived which is extremely rare). There are 2 ways this normally works, the doc fee is taken with the first direct debit or spread across the term of the agreement.

I have just used the Motonovo finance calculator and it clearly showed a higher 1st and final direc debit.

http://www.carloanadviser.co.uk/Default/Home/DealerFinance

At £358 the doc fee is £199 and the option to purchase is £159

ihateyes

SeanG79 wrote: »

I dont specifically work with Motonovo, but I do work with several other vehicle finance providers (non-manufacturers finance). There is ALWAYS a documentation fee or facility fee (unless this is specifically waived which is extremely rare). There are 2 ways this normally works, the doc fee is taken with the first direct debit or spread across the term of the agreement.

I have just used the Motonovo finance calculator and it clearly showed a higher 1st and final direc debit.

http://www.carloanadviser.co.uk/Default/Home/DealerFinance

At £358 the doc fee is £199 and the option to purchase is £159

Sean go to motonova website, chose a car, it shows a fee, but it also shows the payment schedule.... the 1st payment was the same as the following 22, but the 24th was more expensive

opinions4u

I can't locate the credit agreement at the moment

This is where you'll find the answer.

The same lender can build its finance agreements in multiple ways. So while your agreement won't be unique it's possible for somebody to answer the question based on what their paperwork says and for that answer to be completely wrong when applied to your paperwork.

SeanG79

Hire Purchase
Total Payable:£7,916.16
Total Fees:£358.00
First Payment:£493.09
Total Monthly Payment:£294.09 x 22
Final Payment:£453.09
Representative APR:13.9%

That is from the Motonovo website

ihateyes

SeanG79 wrote: »

Hire Purchase
Total Payable:£7,916.16
Total Fees:£358.00
First Payment:£493.09
Total Monthly Payment:£294.09 x 22
Final Payment:£453.09
Representative APR:13.9%

That is from the Motonovo website

the quote i done was a ford focus in Glasgow