Car voluntary termination...Pleeease Help

harrythepotter

Hi All.

I'm really hoping someone can help and advise re- Car Voluntary Termination (VT).

I am 3 years through a 5 year HP agreement with Black Horse. I have been told that because i am over half way through the payment terms than i can hand the car back using the VT rules.

I called Black horse to advise them that i was going to VT my car and find out the proceedure, but they said that my agreement didnt have the Voluntary termination clause in it, therefore i couldnt return the car.

I have looked at my contract and there is no mention of a VT clause, and at the top it says Fixed Rate, unregulated HP Agreement!

Even though there is no detail of a VT clause on the agreement but it is a HP agreement, am I still able to do so?

Thanks in advance all

standupguy

Although you have a hp agreement it is unregulated.

This means that it is outside the scope of the consumer credit act.

This agreement will have been used as either the advance was over £25000 or the agreement is in the name of a limited company?

You have no termination rights under an unregulated agreement.

harrythepotter

Thanks Standup...not good news! The agreemant wasn't under a limited company but was just over £25k...have I any scope for VT or an agreement with Blackhorse?

The car is worth 8.5k and the settlement figure is 12.5k, so 4k negative equity!!

Any advise on a next step?

standupguy

Apart from seeing the agreement through or selling the car and stumping up the negative equity at time of sale there is not much you can do.

Whilst you may have enjoyed a low interest rate on the agreement in view of size of balance financed, Finance companies get their own back -and their profits up - if you settle early as they do not have to adhere to a set way of calculating rebate of interest charges on settlements.

This means the difference between what the agreement stands them in capital on their books will be well below the amount of your settlement figure - could be over a thousand pounds less?

You could try speaking to someone in authority and ask if they would be prepared to reduce the settlement figure - say, if you thought you were being made redundant or some other genuine reason where you may find difficulty etc? - you may get another £500 or so off the figure, you never know and worth a try?

The good news is that if you enter into a new agreement now where the amount financed is over £25000 then it is now regulated and there would now be vt rights.

Your only other option is to px the car and discuss with the dealer salesman how much of the negative equity may be carried into a new agreement?

harrythepotter

What i dont understand is why the VT clause wasnt in place when i took the agreement out?

VT seems very common on HP agreements but mine didnt have one in it at the time, (3 years ago) isnt there any subsequent legislation which i could use to force the finance companys hand into allowing a VT?

Thanks again!

PNPSUKNET

Blackhorse would of left it out due to the negative equity expected.

CLAPTON

harrythepotter wrote: »

What i dont understand is why the VT clause wasnt in place when i took the agreement out?

VT seems very common on HP agreements but mine didnt have one in it at the time, (3 years ago) isnt there any subsequent legislation which i could use to force the finance companys hand into allowing a VT?

Thanks again!

HP over 25,000 wasn't required to over VT so of course it doesn't.
And no, I'm afraid no subsequent legislation has changed that.