HP car finance

[Sue2704]

Hello, Looking for some advice please.

I have a car on HP finance with Motonovo, I have had the car for 3 years and it has been fine. However about 4 weeks ago I had a problem with it, in that I started to drive it down my hill it suddenly lost all power. I had the AA out that told me it was ‘particle filter additive’. I had it towed to a garage and after some diagnostics this was the report they gave:

”Vehicle recovered in - carried out extensive diagnosis
found multiple wiring harness faults, battery acid leak causing further leaks and Complete engine ecu Failure Fault confirmed by Citroen Master tech
Previous repair has been carried out on this vehicle of poor workmanship
Vehicle requires engine ecu and complete wiring harness - then re check for any possible further faults possible uneconomical repair”

I had never had any work to this description carried out on the vehicle, the garage told me to get onto Motonovo.

I contacted Motonovo who told me that I would have to open a complaint. After going all round the houses they said I would need to prove that the car was in that condition when I bought it, this is not possible as have had the car for three years. I was then advised that they would therefore close the complaint.

I asked what my options were and they said I could voluntarily surrender the car - I could either sell it and they would accept a settlement figure of £3008 (valid until 9/9). Auction it but I’d have to then pay the difference between what the car was auctioned for and the remaining balance of £3500, within 30 days otherwise it would go to a recovery agent. My last option would be to scrap it, I would have to pay the difference between scrap price and remaining balance and they would keep it in house and set up a repayment plan.

It seems whichever option I go for is not great - is this really the only options I have?

Grateful for any advice.

[R0b]

You can exercise your voluntary termination right, it limits yourself to 50% of the total price payable under the agreement but it is likely they would charge you for the cost of repairing the vehicle unless the cost itself was more than the vehicle's value.

Note that voluntary surrender is not the same as voluntary termination, and you can read about it in my VT guide here.

How old was the car when you took it on, was it second hand or brand new?

[Sue2704]

Thank you Rob, this was my first car on finance so I am also new to this situation and a bit out of my depth discussing it with them.

I will have a read through your VT guide.

I bought the car second hand from a dealership, it was 6 years old when I got it.

[Sue2704]

I have just been looking through your VT guide and it mentions about ‘reasonable care being taken’ as the car is a non-runner would this stop them accepting my voluntary termination?

[R0b]

No it shouldn't, Section 99 makes it clear as long as the agreement remains alive, you can terminate at any time. Nothing in law says that the car must, at the time of exercising your right, to be in a roadworthy condition. It does say however, under Section 100 that the amount owed can be increased if the car hasn't been taken car of but that isn't the same as the car being in a roadworthy condition at point of termination.

[Sue2704]

Thank you for your response Rob. I am just in the process of constructing my VT letter/email to Motonovo, using your draft template. Just a quick question regarding one paragraph:

‘I have also inspected the vehicle and I am of the opinion that it is in a reasonable condition given its age whilst accounting for fair wear and tear. Photographic evidence has been taken in the event of any future dispute as to the state of the vehicle.’

should I state anywhere about the car not being roadworthy?

many thanks