Motonovo voluntary termination

[Kirkie2407]

Hi, I'm about to begin the process of voluntary termination of my car finance with MotoNovo.

I'm just after a few pointers and abit of advice on how to approach the process, any information you could give or anybody else would be appreciated.

1. I am 3 payments from 50% - motonovo have said I can VT at any time and if the car doesn't make enough at auction to cover what I still have outstanding (the 3 payments to take me to 50%) only then will I be liable to pay those 3 payments? Is this true? I won't be stung for any interest at a later date? (I have full intention of paying the 3 payments in bulk once I have the money on the 25th Feb)

2. If there were damages found on the car that I deem as minor although they do not upon inspection, would I expect charges for such damage with added interest to what you would normally pay if you were to repair yourself via a mechanic/garage? Could I dispute and barter with them on charges occurred if higher than what parts and labour would be to fix?

3. If I were to send my letter of termination tomorrow? Could I then cancel the direct debit immediately? My payments are taken out 26th of every month? Or would I have to wait until after my next payment is taken?

Thanks

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[MENTION=71570]R0b[/MENTION]

[R0b]

Re: Motonovo voluntary termination

Hello,

1. I am not sure what Motonovo are trying to say. Yes you can VT at any time before the final payment is due, but your maximum liability is 50% plus any overdue instalments. In your case, 3 instalments would be your maximum, subject to the car being returned in a reasonable condition. Sometimes lenders will charge you a fee if you try to make payments above the monthly instalment and if this is the case you can either pay that fee or you could write to them and terminate then enclose a cheque to cover the remaining payments.

2. I would expect them to charge you for any damage which is not within the guidelines they use which is BVRLA but that is very restricted and goes beyond a reasonable condition. I would always dispute the charges if you feel they are not warranted or priced too high. Lenders use this as a means of recovering any loss due to the VT.

3. I would not cancel your DD immediately after sending the letter because you have to give them notice of it being terminated. If you sent your letter today, either send recorded delivery and cancel it once signed for, or send by first class, ask for proof of postage receipt and then cancel it a couple of working days later. If terminated before the next payment is due you do not owe them, but if its after the payment is due then you must pay.