What happens when my Payment Deferral ends?

At the end of your Payment Deferral, your normal monthly repayments will restart. Before the first of those payments is due, you will also need to let us know which option for making up your Deferred Payment(s) you have chosen.

What  options are available for making up my
Deferred Payments?

You can find information and options for making up your Payment Deferral, including our Payment Deferral Interest Calculator on this page below.

As you will see, we have a range of options to help you make up your Deferred Payment(s).The right option for you will depend on your personal circumstances so please consider all of the options carefully.

I’ve chosen my option for making up my Deferred Payment - what do I do now?

Once you have considered the options and chosen the one for you, you can let us know what you have decided by clicking here.

What can I do if I am still worried about my finances? 

Please see our Coronavirus Support FAQs which contains links to a number of websites you might find useful for helping you to manage your finances at this difficult time.

What if I don’t keep to the option for making up my Deferred Payments that I have chosen?

If you restart your normal monthly repayments and all of the payments we have agreed under your option for making up your Deferred Payments are made on time and as required, your credit profile will not be impacted.

However, if you do fail to make the payments required under the option you selected, or you miss any of your normal monthly payments, your Payment Deferral concession will end immediately and you will then be liable to pay all of remaining Deferred payments and any interest due on them immediately and on demand.

In addition to ending your Payment Deferral concession, any failure to keep to your normal monthly payments or payments due under the option you selected will be recorded on your credit profile and may harm your credit score.

Options for making up your Deferred Payment(s)

Below are a range of options to assist you with making up your Deferred Payment(s). 

Some of the options may be more suitable for your situation than others so please read through them all carefully, before making your choice.

For more information about each option, click on the headings below.

1) Pay Now

If you can make your normal monthly payment under your finance agreement and your financial situation also allows you to make up your Deferred Payment(s) straight away, Pay Now could be a good option for you. The Financial Conduct Authority has confirmed that if customers can start making full repayments, it is likely to be in their best interest to do so.   

By making up all of your Deferred Payment(s) in one payment, before or with your next monthly payment, you will not incur any additional costs or interest and your account will immediately be back up to date.

Once we receive your Deferred Payment(s) your Payment Deferral arrangement will be completed and all you then need to do is continue making your normal payments, until the end of your finance agreement.

2) Spread the Cost

If you can restart your normal monthly payments but can’t afford to make up all of your Deferred Payment(s) in one go, Spread the Cost could help you to keep your payments at a level that is affordable within your overall budget.

There is an interest charge for Spread the Cost so, whilst you will not be charged any interest during your Payment Deferral period, interest will be charged on your Deferred Payment(s) at  a rate equivalent to the APR for your finance agreement from the end of the Deferral Period until your Deferred Payment(s) are made up.

Spread the Cost will cost you more in total than Pay Now.

3) Pay at the End

If you can restart your normal monthly payments, but your finances are tight right now and you cannot afford to pay any extra on top, Pay at the End allows you to postpone making up your Deferred Payment(s) until the end of your finance agreement, whenever that occurs.

Keep in mind that if you choose Pay at the End, interest will be charged on your Deferred Payment(s) from the end of your Deferral Period until your Deferred Payment(s) are repaid and the interest rate will be a rate equivalent to the APR for your finance agreement.

When your finance agreement ends you will need to make up your Deferred Payment(s) and pay the interest due.

To make up your Deferred Payment(s) and the accrued interest, the total due for your Deferred Payment(s) will be divided into three monthly payments, with the accrued interest being covered by a fourth and final monthly payment.  Those four payments will be collected from your account, using your existing direct debit, over the four months following the date on which your normal final payment under your agreement is due to be made. 

As Pay at the End gives you the most time to make up your Deferred Payment(s), it is the most expensive option due to the time over which interest accrues.

Click on the heading above for more detail about each of the options.

If you have a question on your Payment Deferral next steps, please visit our FAQ page.

Important Information

We need you to tell us which option you want for making up your Deferred Payment(s) before your normal monthly payments restart. To make your choice, please click here.

If you do not tell us which option you want, we will automatically put you into the Pay at the End option, which will give you the most time to make up your Deferred Payment(s) but is also the most expensive option.


Ending your finance agreement early

Can I repay my loan early if I have not made up my Deferred Payment(s)?

Choosing one of our Deferred Payment options does not affect your right to repay your loan early, if you so choose.  Any outstanding Deferred Payment(s) and the interest due on early settlement will be added to your final payment.

Can I sell or part-exchange my vehicle if my Deferred Payment(s) are outstanding?

If you want to part-exchange your vehicle with Deferred Payment(s) and/or interest on them outstanding, you will either need to pay the full outstanding amount to us before the part-exchange or arrange for the outstanding amounts to be paid directly to us from the part-exchange proceeds.  As a result, you may have less to put towards the replacement vehicle than you would have done if your agreement was fully up to date.

If you want to sell your vehicle you will firstly need to settle your agreement in full, including making up all Deferred Payment(s) and paying all interest due.


Your vehicle 

When will I own my vehicle?

When we have received all of the payments due under your finance agreement, which includes your Deferred Payment(s) and any interest charged, ownership of your vehicle will be transferred to you.

Who is responsible for my vehicle?

You will be responsible for your vehicle until we have received from you all payments due under your agreement, including all Deferred Payments and any interest charged.

Until then you must continue to tax, MOT and insure your vehicle as set out in your finance agreement, even if the date when your agreement was due to end has passed. You will also be liable to MotoNovo for any loss, damage or costs in connection with your vehicle until ownership of it transfers to you.

I have a PCP agreement - will this impact the Guaranteed Future Value (GFV) of my vehicle, my mileage allowance or balloon payment?

No, your GFV, mileage allowance and balloon payment will remain the same as before.

Have the terms of my finance agreement changed?

No, all of the original terms of your finance agreement have remained the same. We’re offering both Payment Deferrals and the Deferred Payment options as concessions; intended to help you cope with the impact of coronavirus and offered in line with guidance from the Financial Conduct Authority. They all involve temporarily suspending or varying some of our rights under your existing finance agreement but only on a temporary basis. This is done simply to accommodate your Payment Deferral, so the actual terms of your finance agreement have not changed. 

If you do not keep to the terms of the option you have chosen for making up your Deferred Payment, it will terminate automatically and any remaining amount of Deferred Payment, together with interest due, will be immediately repayable.