car finance advice please

krustylouise

Hi all,

Hubby took out a finance agreement on a car on 12th August 2015. Its through Moto novo. The car was approximately £9500 and the finance total to pay is approximately £14,000. Yes I know terrible!

Hubby assured me he could keep up the repayments £240 pm for 5 years. But as I'm currently on maternity leave and wont be returning to work, our finances are alot less than last year. He knew this but there was no talking to him.

Now we've had the car 8 weeks and its already been back to the garage twice, for faults. The first was a clunking noise and faulty parking sensors. They checked the car out, assured us there was mo issue and gave us the car back. Then two weeks ago the car just stopped working at a busy roundabout and showed "power steering malfunction". The garage fixed the issue and gave us the car back. Now, we love the car, but don't feel comfortable with how many times its gone faulty in the last two months. Especially as we're committed to this for the next 58 months!

As we're (well hubby) only two months into the agreement is there anyway he can voluntarily terminate without any adverse affects (eg still having the pay the balance?)

Thanks in advance for all advice - no nasty comments please as I know he has been stupid and am angry at him already!

Nearlyold

As both faults have been fixed I'm afraid there is not much you can do, you certainly can't just hand it back without financial consequences. To Voluntary Terminate without further charges you have to have paid 50% of the total amount payable under the agreement and you are obviously a long long way off this.

Your only viable option is to sell the car and use the proceeds to pay the settlement figure though you'd no doubt be left with a shortfall. If the car is on HP you can't sell it without the lenders permission as the car belongs to them, so selling it privately is going to be difficult, it would probably be easier to sell it back to the dealer (the dealer will forward the monies direct to the finance company) but that'll still leave you with a shortfall to find

foxy-stoat

Take a loan out for £7500 and pay that to Motor Novo, this will allow you to either sell the car and settle the finiance in full or Voluntary Terminate the agreement.

Once your otherhalf has paid back the £7500 loan, the lesson should of been learnt.

Your other half may need another couple of thousand to buy an older car as he will have no transport after he sells or hands the car back, so may need a £10,000 loan.

Good Lucks with it and your pregancy.