Voluntary Termination of HP

CHR15

You broke it because you agreed to make xx repayments of £xxx.xx.

For example, your contract agreement says 60 Months at £250.14. total amount payable £15,008.40

You make half that so 30 payments of £250.14 so you have only repaid £7,504.20

The lender thought they were getting just over £15k off you but because you have taken advantage of a contract clause, have only repaid them less than £8k.
They then have all the hassle of recovering the car, auctioning it off, re-calculating the shortfall, contacting you again, chasing you for the shortfall and making a new agreement for you to repay the deficit.

Nobody has said a lender WILL say NO to you in the future, they have simply said they MIGHT say no.

Some lenders may not be at all bothered, the next one may see the VT Marker and decide they don't want to risk lending to someone who may pull this stunt again.

It isn't negative in as much as they see a default, you simply took advantage of a clause which leaves them with more administrative work to do.


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Bikemate

I am about to VT the car I have had with Welcome Finance. The other day the car broke down and experts are telling me that its the differential or driveshaft, through now fault of my own?. Do I need to get this repaired before Vting?

CHR15

I wouldn't think you HAVE to get it repaired but it is going to severely affect the resale value.

You are going to have to make up that shortfall between the amount outstanding and the price the car goes for. With a major defect, the shortfall will be larger.

plug13

fatbelly wrote: »

It's a loan

I have a similar question as above, only my HP/loan agreement is no longer with GE Money but now with Sandander and following their takeover of the GE Money Motor Finance I have recieved a letter including a schedule of fee's listing "goods collection on voluntary termination - £70" and "Voluntary Termination refurbishment fee - £re-imbursement of costs."
I have have now paid over half of the "loan"
Does anyone think that I am able to VT??
Thanks

Jamesyg27

Guys, I have a couple of questions I could really do with the answers to if possible please.

I am about to VT my car but have the following concerns,

Firstly, when I purchased my car I requested a tow bar, parking sensors and OEM bluetooth kit. These were all fitted by the garage before I signed on the doted line. My worry is that these are not 'standard' to the car, could this affect the VT?

Secondly, the Hire Purchase agreement states 'yearly mileage 10k miles' - however, due to changes in work circumstances, 2 years on I have done 65,000 miles! I have informed Skoda on several occasions and asked to increase payments. However, they stated that payments can not be altered when the contract starts. They then stated that if I VT'd the excess mileage charge WOULD NOT apply. I guess I should trust what they say, but can only one confirm?

Any help would be much appreciated here - I am rather nervous I may get a huge bill!

Thanks all,

James

NeverEnough

Some HP companies apply their terms and conditons very rigidly especially the mileage usage......with each mile over the contract rate being penalised at around 25p per mile

Is there a particular reason why you want to VT as you state you wanted to pay extra re the mileage so no debt crisis then? Would you not be better off part-exchanging the car or completing the agreement and selling? It may make getting car finance again a bit harder......:eek:
and in this instance, I think you may find a hefty penalty with doing 65K miles in 2 years rather than the contracted 20K miles....the car will be worth that much less to the company so hardly unfair to penalise such a huge difference in mileage.....

The extra fitted items should not make a difference as they were dealer supplied and fitted and would "add value", so to speak. Engine mods and body kits and blinged up wheels on the other hand, would not.

Given the vast mileage difference from your contracted amount, I would think really carefully about the VT route, as you may end up paying a big penalty for every mile over the limit......

Jamesyg27

NeverEnough wrote: »

Some HP companies apply their terms and conditons very rigidly especially the mileage usage......with each mile over the contract rate being penalised at around 25p per mile

Is there a particular reason why you want to VT as you state you wanted to pay extra re the mileage so no debt crisis then? Would you not be better off part-exchanging the car or completing the agreement and selling? It may make getting car finance again a bit harder......:eek:
and in this instance, I think you may find a hefty penalty with doing 65K miles in 2 years rather than the contracted 20K miles....the car will be worth that much less to the company so hardly unfair to penalise such a huge difference in mileage.....

The extra fitted items should not make a difference as they were dealer supplied and fitted and would "add value", so to speak. Engine mods and body kits and blinged up wheels on the other hand, would not.

Given the vast mileage difference from your contracted amount, I would think really carefully about the VT route, as you may end up paying a big penalty for every mile over the limit......

Thanks for the response, I have a very valid reason for VT - purely and simply because the company I now work for run a Company Car scheme as opposed to car allowance.

They are paying me allowance in the interim, but it is costing me an excessive amount of money to run the car each month which just isn't financially viable.

Having spoken to Skoda Finance, they have stated on 2 seperate occasions that the mileage limit will not come into account if I VT. However, we will wait and see if that is the case!

I will ask them for a third time just before I do it, and request for written confirmation.

Car has no non dealer additions, just those listed above. Will keep my fingers crossed Im not hit with a £3,000 bill!

Marmaris08

CHR15 wrote: »

You are going to have to make up that shortfall between the amount outstanding and the price the car goes for. With a major defect, the shortfall will be larger.

That is duff info I'm afraid. As long as you have repaid 50% of the total amount due, and the vehicle is in a reasonable state of repair, you will not be liable for any more costs at all.

They can't chase you for any shortfall just because you have initiated the 50% termination rule.

All your financial commitments to the company involved shall cease after this point, if you VT correctly.

Apples2

Marmaris08 wrote: »

and the vehicle is in a reasonable state of repair, .

It's got a broken driveshaft!!

gordikin

Marmaris08 wrote: »

That is duff info I'm afraid. As long as you have repaid 50% of the total amount due, and the vehicle is in a reasonable state of repair, you will not be liable for any more costs at all.

They can't chase you for any shortfall just because you have initiated the 50% termination rule.

All your financial commitments to the company involved shall cease after this point, if you VT correctly.

The car is mechanically unsound...did you miss that?