Car Finance on HP from Motonovo

plazydays_2

HI, I am after some quick advise and help. My daughters boy friend brought a car at a garage with finance arranged through Motonovo. He brought it back in March 2014 but has since had a brush with the law which resulted in his license being endorsed. This means he is unable to insure the car fully comprehensive. This has now resulted in the car being taken back as the T&C's of the contract on the car insist the car is fully insurance by him. The car is now going to be sold at Auction leaving him to pick up on the rest of the finance that the car falls shy of.
Motonovo very very unhelpful when i tried to assist him to a point where I even tried to insure the car myself so that he could keep the car to no avail. However, I have since looked through his finance agreements and I just cannot believe how he was able to obtain such a high value loan compared to his actual income. The car was 9K with 1K deposit. His monthly income is in the region of £940 and he runs a flat etc. I have contact Motonovo as I believe that the finance was missold on the basis that his finance was unrealistic to his income. I am also concerned the the vehicle is being sold at auction where it will fetch far less that it is actually worth and the car itself was worth no where near what he paid for it in the first place. Does anyone have any ideas on how to tackle this situation or is he screwed?

Gaz83

Presumably he was happy to agree to the terms and conditions when he signed the paperwork.

I don't think your daughter's boyfriend has a leg to stand on, to be honest.

forgotmyname

At auction it will fetch exactly what its worth. He paid more from a dealer because they buy from auction and then add their costs and a margin to cover any work that may need doing.

If he found faults after driving it away they will have repaired it free.

What figures did he give them on the paperwork? Did he say hea earnt more than he really does?

merlin68

Are you sure its hp as it turned out that Ares wasn't and cab said very few cars now are on hp. Most are fixed sum loan agreements.

jonesMUFCforever

I have purchase a car through Ford finance - it states as plain as day on my finance agreement - HP.

Edi81

Depends on the loan vs cap guide value whether hire purchase or fixed sum loan.

In my days as a car credit underwriter we would tend to only ask for income details on high value advances - an 8k loan wouldn't have been considered high value.

At the end of the day, he willingly signed up to the agreement knowing his personal financial circumstances. In what way was it mis sold? Two words sadly lacking in this world these days - personal responsibility.

SeanG79

A few comments:
1 - Motonovo could not know if the insurance was fully comprehensive/3rd party, they would only know if the vehicle showed up as uninsured on the Motor Insurance Database (it does not advise fully comp/3rd party). Did he keep the vehicle uninsured for any period before you then insured it on your name?
2. It is a breach of the terms and conditions of the agreement he signed with Motonovo to not have the vehicle fully insured in his own name, and hence why they will have repossessed the vehicle.
3. The agreement was not missold, he signed a contract, knowing what his income was and what the payments would be, and I assume until his "brush with the law", he was making the "unrealistic" payments on his monthly income.

Sorry to be blunt, but this is a consequence of his "brush with the law" and is in no way the banks fault.