Hire Purchase company contesting finance with dealer 3 weeks later!!

jps3290

Had a good look around on google etc and I can not find anything similar to what i've heard recently when I got a call out of the blue from the dealer I bought my car from 3 weeks ago.

I put a car in partex with the dealer who settled the existing HP on that car (car was worth more than i owed so some went as a deposit on new car 2nd hand car).

I put down £2000 extra deposit by credit card (for security) and the dealership sorted out my finance agreement on the new 2nd hand car.

On the day of collection I had to go through to the dealership and sign the online system for the finance they had setup for me and then come back a little later on when the payment had been made by Motonovo.

With me so far?

Anyway, I get the call, dealership had their payment from MotoNovo and I was given the keys to the car and left my partex with them.I get a letter from my old HP company confirming settlement had been made and account closed.

3 weeks go past and I get a call from the manager of the car place today telling me not to worry but Motonovo had been in touch with them stating the car was a Cat D repaired vehicle and that they don't provide finance on them. I was fully aware it was CAT D, it shown on HPI as cat D and dealership had been honest and truthful throughout as their advert confirmed it was CAT D. The price of the vehicle was also around £6k under what they retail for not being a CAT D so I was happy with that and also the standard of the repair. (all non structural).

What I was not aware of is that apparently Motonovo do not provide finance on CAT D vehicles but the dealer set this up with MotoNove who don't make an instand decision, it took around 6 hours from signing agreement to payment being made by them.

Dealership said they will contest it and also if necessary try to switch the HP at their expense with no increasing charges to me.

My questions:

Has this happened to anyone before?

The credit agreement was signed 3 weeks ago although I have not made my first payment yet. Can Motonovo force me to hand back car and demand the dealership to refund the finance on the car?

Can MotoNove cancel an agreement they have signed off and paid out on??

Motonovo have not been in touch with me as of yet but dealership said they might to check if the dealership has explained the problem to me. (im posting this now and its been nearly a week since dealer updated me and still heard nothing from HP company)

Were do I stand legally in all this if garage have to refund the money considering car has been signed over to me and I have paid approximately £2500 towards it?? £500 cash £2k credit card.

I can probably quite easily get a loan if need be to cover the HP agreement but to be fair I like the idea of HP in case I need to get out half way through if my circumstances change or have issues with the car.

Any advice or help appreciated as after 23 years this is new one on me!!

I simply can't find anything on the internet of anyone else having this issue. Most things i have read is were Finance companies won't lend on CAT C or D cars so refuse credit, as you can see they have released it and took 3 weeks to notice. The CAT D marker shows up on HPI which im assuming they do prior to releasing funds.

Thank

Car_54

The first thing you should do is read the finance agreement that you have “signed”, to make sure you haven’t unwittingly declared that the car is not Cat D, or anything else to that effect.

It seems a bit fishy that Motonovo were checking this so long after agreeing the deal.

jk0

Sounds like a sneaky way to screw some extra money out of you by charging a higher interest rate 'in view of the cat D'. See if I'm right.

jps3290

Yea I'm confused why its took 3 weeks for them to apparently notice and why have they contacted me directly about it.

Garage said not to worry and I wouldnt need to pay any fees if it was transferred or any increase in payments if they can not contest it with motonovo. I'll give them a ring in a few days for an update.

loskie

Can you get out of HP half way or are you mixing that up with PCP?

jps3290

loskie wrote: »

Can you get out of HP half way or are you mixing that up with PCP?

HP you get VT at half way point and owe nothing.

loskie

ok but maybe you need to double check that.

DoaM

What use would VT be to the OP? They'd end up having paid 50% of the finance contract value and still have no vehicle.

(Not sure why VT has crept into this thread).

jps3290

DoaM wrote: »

What use would VT be to the OP? They'd end up having paid 50% of the finance contract value and still have no vehicle.

(Not sure why VT has crept into this thread).

Me either, wasn't sure were that was going lol

loskie

to quote the OP:

"I can probably quite easily get a loan if need be to cover the HP agreement but to be fair I like the idea of HP in case I need to get out half way through if my circumstances change or have issues with the car."

Mercdriver

loskie wrote: »

Can you get out of HP half way or are you mixing that up with PCP?

You can, but the OP talks about it as if they can do it having issues with the car. The car has to be in good condition and working properly to VT it. I also think that too many people are using VT as a reason not to take HP of any kind seriously.