Voluntary Termination on HP

marcg868 · 19 Feb 2024 at 05:43

With Motonovo.
Got my Kawasaki Ninja 650 for £7263 (intrest included) February 2021 on a 60 month term. Unfortunately for medical reasons im unable to ride anymore and looking to hand it back.
From what ive you have to have paid 50% and i think im at that figure but my Maths is rubbish.
How do i start the process, do i ring or write to them. And has anyone had any problems.

VoG · 19 Feb 2024 at 06:57

Your probably better off posting this in the Biker's Cafe https://forums.overclockers.co.uk/community/bikers-cafe.124/ but either way give them a ring & ask them what to do, at least that way you'll get the info you need straight from the horses mouth so to speak.

MissChief · 19 Feb 2024 at 07:16

Call them and state that you'd like to return it having paid half the term. They won't like it and may try and talk you out of it though! Did this with a car once and the advisor on the phone was very snooty about it.

Haggisman · 19 Feb 2024 at 10:30

If it's HP, then the bike is yours at the end of the agreement - how much is it worth now?

I sold my Zoe (on HP), cleared the finance, and ended up with £1k in my pocket, as it was worth more than the outstanding finance at the time.

HangTime · 19 Feb 2024 at 15:18

Finance repayments typically aren't linear due to interest (you pay off less capital in the early years and more towards the end) but even so with how low rates were in 2021 I'd imagine that 3 years into a 5 year agreement you probably have paid over 50%.

As mentioned above you may be better off simply settling the finance and selling the bike, depending on how much you owe vs what you could realistically achieve from a sale.

Dup · 19 Feb 2024 at 16:02

I did this in 2010 with a car. heck your fine print but for me it was being 50% or more into the term rather than the purchase value. They do say some companies may leave a mark on your credit file that you did a voluntary termination which *could* be seen as a negative to future lenders but that wasn't the case for me so I can't say either way.

All I did was call them, no fuss was made, they sent someone to pick it up and much like a hire car we walked around it and logged any blemishes etc and off it went. They do inspect on the other end too and can come back at you for any unreasonable wear & tear but that wasn't an issue for me. It was in great condition for its age and mileage so I was all done and dusted.

If you or a family member can facilitate a sale (maybe even to a dealer), you might be able to bank any potential equity. Well worth a look and could be less hassle & paperwork.