Motor Finance Related Terms

This is the length of time over which you agree to repay the amount you have borrowed from Moneyway.

The APR shows the annual cost of a finance agreement over and above the amount you have borrowed. The APR will include interest rate charges and any other fees included in the agreement, such as administrative fees. By law, the APR must be shown on relevant documentation presented to you. You can use the APR to compare the cost of different finance products.

A credit agreement is a legally-binding contract between you, the customer and Moneyway, the finance company. The credit agreement must include details of the loan amount, the term, rate of interest, other charges and your rights and responsibilities for the duration of the agreement. You will receive a copy of the agreement you have entered into.

A credit applied to your loan account will reduce the balance you owe. An example of a credit to the account would be when you make your monthly payments to your loan.

A debit applied to your loan account will increase the balance you owe.  An example of a debit to your account would be if a direct debit did not clear or if fees/charges were applied to your account.

This is when you the customer pays off a finance agreement before the agreed term is completed. You can obtain your settlement figure by completing a Settlement Form here. Alternatively you can contact us on 0345 111 7125.

This is the last repayment to be made under your Moneyway agreement, and can include an option to purchase fee under a hire purchase agreement.

This means the interest rate is fixed throughout the duration of the agreement.

Hire purchase or HP is a motor finance product offered by Moneyway. When taking out a HP agreement, you choose to pay an optional initial deposit, then fixed monthly repayments over a set number of months. With HP the ownership of the vehicle is not officially transferred to you, the customer until all payments have been made (including the £10 option to purchase fee).

An interest rebate is when a refund of some or all of the interest charged to your finance agreement is applied to your account. An example of when you could receive an interest rebate is when you make a lump sum payment as a partial or full settlement of your finance agreement.

A payment at the end of your Moneyway Hire Purchase agreement which, when paid, transfers ownership of the car from Moneyway to you, the customer.

Part-exchange involves trading in your existing car and using its excess value above any outstanding finance as part payment towards your new car, perhaps to help fund a deposit under a finance agreement.

A quotation provides an indication of the costs that would apply if you went ahead with a finance agreement with Moneyway. The information shown in the quotation is prescribed by law and must include any deposit required, the monthly repayments, the Annual Percentage Rate (APR), other charges and the total amount payable. Asking for a quotation does not commit you to entering into an agreement at a later date, and will not leave a ‘footprint’ on your credit record.

The right of withdrawal under the Consumer Credit Act (CCA) applies only to the credit agreement – it is not intended to end any linked contract for the supply of goods or services that the credit is paying for, such as a vehicle.

By withdrawing from your Moneyway credit agreement you are withdrawing from the finance agreement, not the purchase of the vehicle. You will still be required to pay for the vehicle some other way, unless that linked contract has a separate right of withdrawal or cancellation, so you must find a source of alternative funding. Once you’ve paid for the vehicle in full, (plus interest) title to the vehicle passes to you, the customer from Moneyway.

You have the right to end your Agreement early and return the car to us. This is known as Voluntary Termination.

You must pay or have paid at least half of the total amount payable under your Agreement.

You will also need to pay for any damages to the vehicle outside of reasonable wear and tear.

This option is not available if the agreement has already been terminated.

If you have not already paid half of the total amount payable, or there are arrears due, you will remain liable for this amount after you return the vehicle to us.

If you have already paid half of the total amount payable, any arrears will still be due.

You will also be liable for any additional charges.

Refer to our Motor Finance Vehicle Options for a table that compares the options in more detail, here. 

You can also contact our Collections Department on 0330 303 0567.

Voluntary Surrender means you agree to hand the vehicle back to us.

We will arrange to collect and sell the vehicle at auction.             

The net proceeds of the sale will be deducted from your outstanding balance, along with any interest rebate due.

This option is available if the agreement has already been terminated.

You will be liable for the outstanding balance and any additional charges.

Refer to our Motor Finance Vehicle Options for a table that compares the options in more detail, here. 

You can also contact our Collections Department on 0330 303 0567.