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wagonlad

Hi new on here,

We are currently trying to clear some loads and credit, we have finance on a car which we no longer need the company say we cant just hand the car back so need a settlement amount, but i think this maybe more than the value of the car so the what if we have allready had reposetion letters if we dont pay so what happens if we do default are we still held to paying even though they have the car or is it just arrers and charges we would need to pay.

Many thanks

inmypocketnottheirs

wagonlad wrote: »

Hi new on here,

We are currently trying to clear some loads and credit, we have finance on a car which we no longer need the company say we cant just hand the car back so need a settlement amount, but i think this maybe more than the value of the car so the what if we have allready had reposetion letters if we dont pay so what happens if we do default are we still held to paying even though they have the car or is it just arrers and charges we would need to pay.

Many thanks

Wow, a long sentence to make sense, but here goes?

Is the car on an HP agreement?

How long was the original term?

How many months have you paid?

How much deposit?

How much are the monthly repayments?

wagonlad

Hi,

Sorry for the long sentence.

Here goes on info:
Not to sure what would class as HP it was a finance deal via dealer secured on car.
Original term is 60 months.
We have paid 30 months now.
Only £100 deposit.
£290 a month.

Thanks

~Brock~

wagonlad wrote: »

Not to sure what would class as HP it was a finance deal via dealer secured on car.

What does it say on the top of the credit agreement?

wagonlad

Just dug out the paperwork and yes it does say "hire purchase".

inmypocketnottheirs

OK, if you have paid half of the amount of the agreement then you can do a Voluntary Termination (VT). Have a look through the agreement and under cancellation it should tell you. Then write sending the letter by recorded delivery saying that you want to return the vehicle by exercising your right to VT.

The vehicle will need to be in good condition considering it's age and mileage.


HTH

~Brock~

A couple of points here, based on your original post where you say that you have had repossession letters, which means that I assume you are in arrears.

1. If the lender has already terminated the agreement themselves, maybe because they are looking to repossess the car, then you no longer have the right to voluntarily terminate yourself.

2. If you do VT, you will still be liable for any arrears on the account up to the point of termination.

wagonlad

We were in arrears but these are now cleared, and back to normal. Is this VT a given thing in all HP cases or does it have to be in your agreement ?

wagonlad

Ok we are there, after asking about a VT they changed their stance. All of a sudden I owe nothing and can return the car. When I pointed out they did not mention a VT this morning they said they dont like to offer that option as the car goes to auction and they loose too much money.

Many thanks to "Brock" and "inmypocketnottheirs" for your help.

Marc