Motonovo Voluntary Termination

Taff2121

hello🙂

just after some advice with regards to voluntary termination with MotoNovo. 

took out PCP on a Ford Kuga in January 2023 so we have made over 50% of payments. 
my partner has now had to take a drop in wage so having to re look at finances.

MotoNovo have agreed that we can hand the car back, we know we will have access mileage charges and an early hand back fee plus whatever else they pick up on however has anyone done this before and they have accepted the invoice to be paid in instalments? it sounds as if they will want it in full but this isn’t going to be possible what with the current financial strain. 

any help would be appreciated. 

DrEskimo

Have you checked the current value relative to the outstanding finance balance?

Run a check on WBAC, and ring around a few reputable local dealers and indie garages and ask if they are interested in buying the car from you and see what their offer is. Then get the settlement figure (not remaining balance, the settlement figure to clear the finance today) from the finance company.

If it's same (or more than) then just do that. Will be far easier and damage/mileage will be reflected in the trade price so nothing further to pay. If it's worth more you will get paid the difference too.

Ayr_Rage

50% of the payments is not necessarily 50% of the total amount payable including the balloon payment.

Make sure you know exactly where you stand.

Taff2121

thank you.

we have contacted a few garages & looked into Motorway however all offers have been between £9000-£9200.

The settlement figure from MotoNovo is £11,149 so negative equity. 

DrEskimo

As above, are you positive you have reached the voluntary termination (VT) point through your deposit + monthly payments? What is the total amount payable for the PCP contract (deposit + Monthlies + final payment + optional purchase fees), and how much have you paid to date?

You are free to VT at any stage in the contract, but you have to have paid at least 50% of the total amount payable. If you haven't reached this 50% amount, then they will be asking you to pay the difference in the final invoice.

Taff2121

okay so looking at paperwork under the ‘overall total due including option to purchase fee’ is £22,081,02
we paid £1817.02 deposit and have made 29x payments of £387.98 - hope this helps? 

Arunmor

Have you asked Motonovo?

Mildly_Miffed

Taff2121 said:

okay so looking at paperwork under the ‘overall total due including option to purchase fee’ is £22,081,02
we paid £1817.02 deposit and have made 29x payments of £387.98 - hope this helps? 

£1817.02 + (29 x £387.98) = £12,292.48 - so, yes, you have paid more than half of the total due.

Taff2121

thanks for confirming, that’s one less worry!

now just hoping they would potentially let us pay the final invoice in instalments - additional mileage is approx £800 plus early hand back fee

XRS200

What do you mean by early hand back fee?

LightFlare

Mildly_Miffed said:

Taff2121 said:

okay so looking at paperwork under the ‘overall total due including option to purchase fee’ is £22,081,02
we paid £1817.02 deposit and have made 29x payments of £387.98 - hope this helps? 

£1817.02 + (29 x £387.98) = £12,292.48 - so, yes, you have paid more than half of the total due.

are you sure - i get £13,068.44 (think you did 27x instead of 29x) -- still over 50% though