We appreciate that, for some, COVID-19 has squeezed household budgets and the current uncertainty might mean that you want to limit your spending right now.
If you can restart your normal monthly payment but can’t afford to make up all of your Deferred Payments in one go, Spread the Cost could help you to keep your payments at a level that is affordable within your overall budget.
Whilst you were not charged any interest for the period of your Payment Deferral please understand that if you choose Spread the Cost, interest, at a rate equivalent to the APR for your finance agreement, will be charged on your Deferred Payment(s) from the end of the Payment Deferral Period until your Deferred Payment(s) are made up. This does mean that Spread the Cost will cost you more than Pay Now.
With Spread the Cost, each month, as well as collecting your normal monthly payment under your finance agreement, we will also collect the extra monthly amount chosen by you as part of your Spread the Cost option. The extra monthly amounts, which we refer to as your “Spread the Cost Payments’, will to go towards making up your Deferred Payment(s) over time.
For your use of the Spread the Cost option, interest will be charged on your Deferred Payment(s) from the end of your Deferral Period until the Deferred Payment(s) have been made up. That interest will be in addition to your Spread the Cost Payments and will need to be paid by you in a separate payment.
Once your Spread the Cost Payments have been completed you can pay off the interest due at any time during the remaining term of your finance agreement. Any interest and Spread the Cost Payments that have not been paid off before the date of your last normal monthly payment will be added to the normal final payment under your finance agreement.
Working out how much extra to pay
To work out what level of extra payment might suit you, please use our Deferral Payment Interest Calculator.
The total of your Spread the Cost Payment and your normal monthly payment, will need to be in line with what you can afford.
Due to the interest charge for using Spread the Cost, the longer you take to make up your Deferred Payment(s), the more you will have to pay in interest charges. By fixing a higher monthly Spread the Cost Payment, your Deferred Payments will be made up more quickly and so you will pay less interest.
Keep in mind that the interest charge for Spread the Cost will be added to your final payment if it has not been paid before then and you will need to make sure you have enough money in your account to cover both it and your final payment.
Who might Spread the Cost be good for?
- Customers who want to spread the cost of making up their Deferred Payment(s) and want control over their monthly spending.
- Customers who can afford more than just their normal monthly payments but whose budget would be significantly strained by the single payment required for Pay Now.
Who might Spread the Cost not suit?
- Customers who are able to pay their Deferred Payment(s) and do not want to pay the interest charged for using the Spread the Cost or Pay at the End facilities.
- Customers looking to part-exchange their vehicle soon/before their Deferred Payment(s) and interest are paid off.
Spread the Cost - Advantages
- You can spread the cost of making up your Deferred Payment(s) so do not need to pay them all off at once.
- Being able to fix the extra monthly amount you pay to make up your Deferred Payment(s) gives you more flexibility to keep your payments at a level that is affordable within your overall budget.
Spread the Cost - Disadvantages
- As there are interest charges for Spread the Cost you will pay more than you would with the Pay Now option.
- Your finance agreement will not be considered fully up to date until we have received all of your Deferred Payment(s) and the interest due in full.
- If you part-exchange your vehicle before you have paid off all of your Deferred Payment(s) and any interest due, the part exchange value you receive may be reduced.
To choose Spread the Cost, please visit MoneyManager
For further help and support, visit our FAQs. To explore your other options, click here to return to the previous page.
Important Information about your options
Please read the following carefully as it contains important information about your options.
- It is important that you tell us which option you want before the first of your restarted monthly payments is due. If you do not tell us before then 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.
- All payments will be collected using your existing Direct Debit. It’s important that your Direct Debit remains in place and you have enough money in your bank account to cover both your normal monthly payments and any additional amounts you have agreed to pay. If your Direct Debit is no longer active you can reinstate it quickly and easily at: https://moneymanager.motonovofinance.com/
- If you do not keep to the terms of the option you have chosen it will terminate automatically and any remaining amount of Deferred Payment, together with interest due, will be immediately repayable.
- We’re offering both Payment Deferral and Spread the Cost as a concession to try and help you cope with the impact of COVID-19, and in line with FCA Guidance. They both involve temporarily suspending or varying some of our rights under your existing finance agreement but only on a temporary basis and as required to accommodate Payment Deferral, the actual terms of your agreement have not changed.
- Your Payment Deferral has not impacted your credit file and as long as you keep to the terms of the option you select that option will not have any adverse impact on your credit file either. However, we also need to make you aware that while your Payment Deferral will not be reported to credit reference agencies as a deterioration in your credit position, when making credit decisions in the future lenders may take into account a range of information, which may include information you provide or information from your bank account that may relate to your Payment Deferral.
- None of the options affect any rights you may have to repay your finance agreement early. Any outstanding Deferred Payment(s) and the interest due on early settlement will be included in your settlement figure.
Please keep in mind that:
- If you seek to part-exchange your vehicle when you still have Deferred Payment(s) that have not been made up and/or interest to pay, your vehicle will have less part-exchange value, as result of those outstanding amounts.
- As set out in your finance agreement, ownership of your vehicle will only transfer to you when all money you are required to pay including all of your Deferred Payment(s) and any interest charged has been received by us.
- Until ownership transfers to you, you must look after the vehicle and continue to tax, MOT and insure it. You will also be liable to MotoNovo for any loss, damage or expenses incurred in relation to your vehicle until ownership transfers to you and those obligations and liabilities still apply even after your finance agreement would normally have ended.
- If you bought our MotoNovo Care and/or GAP cover when you took out your finance agreement, your cover will still end on the original end date of your finance agreement and will not be extended to cover any concessionary period after that.