MotoNovo Finance is a leading motor vehicle finance provider in the UK market. It is renowned for its customer-centric approach and innovative financial products. The company aims to assist customers in obtaining ownership of their desired vehicles at affordable plans. It offers a range of car finance options, including Personal Contract Purchase (PCP) and Hire Purchase (HP) finance.
MotoNovo Finance is popular for partnering with different dealerships across the UK to provide competitive rates and flexible payment options suitable for their needs. However, some individuals complain about mis-sold car finance deals. Therefore, we will discuss how to make a successful MotoNovo PCP claim.
What is Personal Contract Purchase?
Before dwelling on the details of a PCP claim process, let’s first understand how PCP finance differs from HP finance.
A Hire Purchase agreement consists of an initial amount and fixed monthly instalments until the total costs of the car or the vehicle are covered. Then, the ownership of the car is transferred to the customer. This process takes time. It may take up to three to four years to make complete payments.
In PCP finance, after paying the initial amount and monthly instalments, the customer has three end-of-term options. These options offer the customer the option to return the car, retain it, or exchange it for a new one.
For example, if you purchased a Land Rover on PCP finance from MotoNovo, you will be provided three end-of-term options. You can choose to return the car without making any additional payment. If you opt to retain the car and transfer ownership in your name, you have to make the last payment. This is known as a balloon payment. It is also referred to as a Guaranteed Minimum Future Value (GMFV). This is a final lump sum that the customer has to pay at the end of the contract to own his car. If he does not want to retain it, or if he wants to get a new model of the car, he can sign up for a new PCP contract.
These are some benefits of signing a PCP deal with MotoNovo. PCP car finance offers more options to its customers than HP contracts. In case of a mis-selling, the customer can seek car PCP compensation from the lenders.
How is PCP Mis-sold?
Mis-selling is a common problem in the UK. Many customers think that they might have been mis-sold on their car finance deals. Therefore, we all should be familiar with the mis-selling process and how to avoid it in the future.
Mis-selling happens when the car dealer or the lender fails to inform the customer about the car finance agreement. It can happen for a PCP or HP contract. Sometimes, the lender does not update the customer on the fixed terms and conditions of a PCP contract. It is the utmost duty of the dealer to educate the customer on the best financial product which is suitable for his needs. Sometimes, the lender and the dealer do not disclose the hidden commissions that they are earning through the deal. This can be misused against the customer, as it directly impacts the monthly instalments and total price of the agreement. In such cases, a customer can apply for a mis-sold PCP claim.
The Financial Conduct Authority (FCA) has found out that thousands of cars sold on PCP and HP contracts between 2007 and 2021 might have been mis-sold on the car finance deals. The reason is the Discretionary Commission Arrangements or DCAs. These were not banned before 2021, so the dealers and the lenders set up a very high interest rate to earn more profits on the deal. Now, after the announcement, individuals who purchased cars on finance via MotoNovo finance are seeking refunds.
If you are one of them, you can make a MotoNovo PCP claim with our PCP claim experts at Drive Back Financial.
When to Make a Mis-sold PCP Claim?
PCP claim process is simple yet time-consuming. Our team at Drive Back Financial is well-equipped to tackle the complexities of PCP and HP claims in the UK. Our solicitors are up-to-date with the latest news and information regarding the PCP mis-selling case in the UK. We are working tirelessly to facilitate our customers sign up for the refund.
If you purchased a car on finance via any lender you think might have mis-sold on the car finance, you can consult us for more information. Our PCP experts will analyse your case, gather all relevant information and check your eligibility for the claim process. If you are mis-sold, we will proceed with your case and ensure you get your money back. Our consultation services are free, and you can easily check your eligibility for the PCP claim via the online PCP checker available on our website.
Check now and claim now!