Voluntarily terminate HP agreement

AprilElizabeth

Hello

I have only just signed up for this so please bear with me and I’m sorry if my first post will be massive

I have found loads of useful information on this website that has helped me with my query but I just wanted to see if I can get any answers to my own personal query

I have finance with Volkswagen for my car and I would like to voluntarily terminate the agreement due to a new company car scheme.

I dug out my paperwork and it says under “Termination: Your Rights” that I am entitled to return the car as long as I have paid £7,066.27 and have taken reasonable care of the car I will not have to pay anymore. I have made payments totalling £8,201.52 and have never missed a payment.

I called Volkswagen to confirm that this was the case and they agreed. Volkswagen advised that I needed to confirm in writing, which they would then respond to and arrange for a 3rd party to inspect and collect the car and that would be it.

Looking on the internet I found a sample letter to send to Volkswagen which had the paragraph:

I/we understand that I shall/we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974.

I don’t really understand this paragraph and have tried to search for section 100 of the consumer credit act but couldn’t find anything.

What I don’t want is for the car to be returned and Volkswagen asking me to pay a huge bill.

Or am I looking into it to much and it really is as simple as it sounds!

Reasonable care of the car...my alloys are a bit battered and there is a scratch down the one side, fewer than 30,000 on a car I have owned for 3 years...does that sound like reasonable care??

Thanks

standupguy

AprilElizabeth wrote: »

Hello

I have only just signed up for this so please bear with me and I’m sorry if my first post will be massive

I have found loads of useful information on this website that has helped me with my query but I just wanted to see if I can get any answers to my own personal query

I have finance with Volkswagen for my car and I would like to voluntarily terminate the agreement due to a new company car scheme.

I dug out my paperwork and it says under “Termination: Your Rights” that I am entitled to return the car as long as I have paid £7,066.27 and have taken reasonable care of the car I will not have to pay anymore. I have made payments totalling £8,201.52 and have never missed a payment.

I called Volkswagen to confirm that this was the case and they agreed. Volkswagen advised that I needed to confirm in writing, which they would then respond to and arrange for a 3rd party to inspect and collect the car and that would be it.

Looking on the internet I found a sample letter to send to Volkswagen which had the paragraph:

I/we understand that I shall/we will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974.

I don’t really understand this paragraph and have tried to search for section 100 of the consumer credit act but couldn’t find anything.

What I don’t want is for the car to be returned and Volkswagen asking me to pay a huge bill.

Or am I looking into it to much and it really is as simple as it sounds!

Reasonable care of the car...my alloys are a bit battered and there is a scratch down the one side, fewer than 30,000 on a car I have owned for 3 years...does that sound like reasonable care??

Thanks

I would think it unwise to ever use a standard letter where you admit to any liability.

All it really needs is a simple letter stating that you wish to exercise your right under the terms of the agreement to voluntary terminate the agreement and return the vehicle.

From what you say the condition of the car is ok subject to fair wear and tear so you should have nothing more to pay.

I am assuming the car is worth less than the settlement figure otherwise if it was worth more it would be better to sell the car, settle the finance outstanding and pocket the difference.