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Help with car finance/hire purchase Watch

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    Hi,

    I took a car out on hire purchase over 48 months with Arnold Clark via MotoNovo Finance just over 2 years ago. Not only 5 days after taking the car out (with third party insurance [I know, complete rookie error]), I fell asleep at the wheel and wrote the car off.

    I had nowhere to store the car, didn't want to scrap it, so kept it for a month and then let the finance company take it back off my hands to sit in a lot. I agreed then to keep up repayments until the hire purchase had been paid off in full.

    2 years on, I've been continuously paying £127 a month and felt it was necessary to look into this a little more.

    According to my contract info, I have the option to terminate if I've paid over 50% and give the car back - essentially losing everything (but stops me paying more money). I called MotoNovo and they advised I'm unable to do this because I physically do not have the car to give back. Is this response valid, or can I do something about it?

    Additionally, I have checked the registration plate and found that the car has been repaired and put back on the road as the MOT and tax have been purchased on it. When I took out the hire purchase, I also took out the Option to Buy after 48 months. If I was to continue making these payments and decided that I wanted to buy the car (as per the terms), what could I do/what would the situation be?

    Massive help would be grateful with this as I'd either rather get my cash back, or my car, or get out of it altogether (although the first 2 options seem like they are do-able)

    Thanks in advance for any advice
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    (Original post by GlazYouCame)
    Hi,

    I took a car out on hire purchase over 48 months with Arnold Clark via MotoNovo Finance just over 2 years ago. Not only 5 days after taking the car out (with third party insurance [I know, complete rookie error]), I fell asleep at the wheel and wrote the car off.

    I had nowhere to store the car, didn't want to scrap it, so kept it for a month and then let the finance company take it back off my hands to sit in a lot. I agreed then to keep up repayments until the hire purchase had been paid off in full.

    2 years on, I've been continuously paying £127 a month and felt it was necessary to look into this a little more.

    According to my contract info, I have the option to terminate if I've paid over 50% and give the car back - essentially losing everything (but stops me paying more money). I called MotoNovo and they advised I'm unable to do this because I physically do not have the car to give back. Is this response valid, or can I do something about it?

    Additionally, I have checked the registration plate and found that the car has been repaired and put back on the road as the MOT and tax have been purchased on it. When I took out the hire purchase, I also took out the Option to Buy after 48 months. If I was to continue making these payments and decided that I wanted to buy the car (as per the terms), what could I do/what would the situation be?

    Massive help would be grateful with this as I'd either rather get my cash back, or my car, or get out of it altogether (although the first 2 options seem like they are do-able)

    Thanks in advance for any advice
    You trashed the car, so you don't have a car to give back...

    You mention it's a HP agreement, but that there's an "option to buy" which makes it sound like PCP?

    As far as I can see, you are obliged to keep up repayments until your contract is over - not sure why you think you could get out of it. Insurance would usually cover you, but you took out TP for some reason?
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    HP and PCP agreements have the same legal rights because they are the same kind of credit agreement for the purposes of the Consumer Credit Act 1974.

    So technically you have the right to end the agreement at any time. But you will still need to pay 50% of the total amount you owe under the agreement and give the car back. Many finance companies are either "unaware" of this, or will try to say you don't have this right.

    But here's the rub. You are required by law to "take reasonable care" of the car, or else the finance company can increase the total amount you owe "...by the sum required to recompense the creditor for that contravention." So if you crash the car without comp insurance and wreck it then the finance company can boost the amount you owe to take account of that.

    Check your contract with MotoNovo. Many HP/PCP agreements say you must take out comprehensive insurance. If you've not done this then you're on shaky ground. If the dealership arranged the insurance for you then let's look into it further.
 
 
 
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