Motonova wanting £4000

Richieleeds1

Hi this is the first time I have been on here so please bare with me.
After surrendering my car because of difficulty with payments. I have received a letter from DWF solicitors. Saying after sale of my car at auction I still owe £4007.63. After a dispute over the phone that I had been misled in being asked to surrender my car. They sent me a statement of payments. Ok so here goes.

CASH PRICE. £10.343
HP ADVANCE £10.093
DEPOSIT £250
INTEREST £5205.40
ADMINISTRATION FEE £199.00
OPTIONAL OPTION TO PURCHASE FEE £159
OVERALL TOTAL DUE £15,906.40

After adding up my payments I get a total off £11.383. And with the auction sale of the car (£2.836) I get £14.219. So my head is fried already at this point how do they get a figure that I owe them £4007.63.

Please help king regards Richie..

[Deleted User]

Because interest is higher at the start of the loan due to the higher capital, so the capital is not paid off equally over the term.

ViolaLass

Deleted_User wrote: »

Because interest is higher at the start of the loan due to the higher capital, so the capital is not paid off equally over the term.

Interest is included in the list though.

Alderbank

Hi Ritchie

You've made it tricky for us by only telling part of the story.

I'm guessing the loan was over 5 years? If so, the interest rate would have been 17.45% and each payment £258.30. If you had made each payment by its due date you could have then purchased the car for £159.

You mention 'difficulty with payments'. Did you make some payments late or not at all? if so that will account for the difference. The earlier you missed payments the bigger the difference will be.

If you would like to share the missing dates and figures we can tell you whether Motonova worked it out correctly.

somethingcorporate

Have you asked them? Seems a reasonable thing to do given the size of the difference.

Ray_Singh-Blue

Seriously this makes me want to buy my next car at an auction