VT - HP with additional loan with Motonovo

Jazziboo

Hi, wondering if anyone can advise me on the following please?!

So i'm considering going down the voluntary termination route, as my car is the running costs for it have become ridiculous e.g insurance, fuel etc (on top of the finance repayments) - i purchased it in June 2017

However im not sure if VT will apply to me or not? Reason being is that i have hire purchase with additional loan with motonovo (the repayment taken as 1 single monthly amount) - i had a look on their website on the VT section and it was a bit vague tbh, it only referred to HP only. The agreement document doesnt shed any light either.

For info my HP credit was approx £11k and the personal loan was approx £4k.

Im 32% repaid (i know i need to be at least 50% - which should be around autumn - but im just weighing up my options at this point).!

In addition i have another HP agreement in my name also with motonovo on another vehicle (this was taken out for a relative, in Dec 2018 who is making repayments and is happy with their car and no plans to VT or anything) - so my second query is if i VT my car would this cause any issues with the agreement on the other vehicle?

thanks in advance :-)

foxy-stoat

If you VT at 50% of the total purchase price on the secured finance then there will be no issue.

Actually you can VT at any point - if your not at 50% and dont pay it then your credit file will take a few hits.

Not sure what the additional loan of £4000 was all about - was it linked to the car when you bought it, or did you not have enough credit to buy it?

Be prepared to pay for the finance on the other car when/if the relative decides its all too much - I assume you have the V5C and spare keys?

Geodark

Sorry are you saying that yu got 11k to pay for the car, and another £4k in cash? are you sure it was HP you got and not a £15k loan?

Nearlyold

Geodark wrote: »

Sorry are you saying that yu got 11k to pay for the car, and another £4k in cash? are you sure it was HP you got and not a £15k loan?

Its probably £11k HP for an £11K car and £4K to cover the negative equity on the part exchange that the the dealer took in. Motonovo do not like dealers bumping the price of the car being purchased to cover the part ex neg equity because it increases their exposure if the customer subsequently VTs.

Ignoring interest if it was a bumped deal the customer could VT after paying £7.5K (as it would all be HP) whereas splitting out the deal means although the customer would still be VTing after paying £7.5K (£5.5K on the HP and £2k on the loan thus far) they would still owe a further £2k on the loan so Motornovo would be entitled to receive £9.5K in total.

Jazziboo

foxy-stoat wrote: »

Be prepared to pay for the finance on the other car when/if the relative decides its all too much - I assume you have the V5C and spare keys?

Hiya, yes i have (im my possession) the v5c for that car in my name and spare key etc.

Jazziboo

Nearlyold wrote: »

Its probably £11k HP for an £11K car and £4K to cover the negative equity on the part exchange that the the dealer took in.

Hi, yes thats correct, i did a part ex (as the car was too small for my growing family and also had ongoing mechanical issues, but still had finance on) so the £4k was toward the negative on that vehicle

Herzlos

What's your plan for a new car?


It may be less painful to just stick it out until paid off, or trade it in for something else and carry that negative equity on again. I'd strongly recommend the former.

Jazziboo

Herzlos wrote: »

What's your plan for a new car?

For my new car i was thinking to lease - as in recent years i have changed cars a often (for various reasons), so going down the HP route i dont think would be suitable for me going forward.

The options i was looking at for my current car was either to VT or to sell & settled the finance - but both options mean i'd have to wait until autumn this year.
I actually equested my settlement (out of curiousity) and it was approx £11,500. Then an online quote from webuyanycar came back at £6k (although i know i could get more privately) - so id need to try and pay off more of my car to lower the settlement figure.

molerat

However im not sure if VT will apply to me or not? Reason being is that i have hire purchase with additional loan with motonovo (the repayment taken as 1 single monthly amount) - i had a look on their website on the VT section and it was a bit vague tbh, it only referred to HP only. The agreement document doesnt shed any light either.

If it is an HP agreement the terms and amounts for VT will be clearly stated on the agreement - it must be there by law. What does the document call itself in big letters at the top ?

Nearlyold

You will be able to VT once you have paid half the "Total Amount Payable" in respect of the HP agreement. Once you have handed the car back and Motornovo have accepted it, (they may charge for any damage beyond fair wear and tear so take photos beforehand) that is the end of the matter as far as the HP agreement goes.

However the VT will have no effect on the Personal Loan so you will have to continue to make payments till the end of the term unless you settle with a lump sum payment.

Jazziboo

Hi molerat, the only document i have (can find) is headed "pre-contract credit information (standard european consumer credit information"

It then has a breakdown of the costs and terms.

And it does state under the heading "Type of credit....hire purchase...£11,450" then under the heading "Additional personal loan...£4k"