Hire Purchase / VT

Not_so_Richy_Rich

I'm new here so apologies if I have posted in the wrong area,

I have read alot on here in regards to voluntary termination of Hire Purchase agreements. Can anyone answer this one for me?

I purchased a car on a 5yr HP. On the documents it says the amount that I would need to pay during the life of the agreement to terminate is £5059.20.

I have paid 30 (out of 60) payments so far.
30 x £136.99 = £4109.70. I also put down a deposit on the car of £1600.
£1600 + £4109 = £5709 which is above the figure quoted.

Am I correct or does the deposit I paid not get taken into account and therefore I am around £900 short of being able to VT even though I have paid half of the 5yr payments.??

ryanm198

Is the £5059.20 not the final balloon payment payable at the end of the agreement.

More info needed really whats was advertised value of the car?

Not_so_Richy_Rich

Sorry,

Taken direct from the document...

Amount of credit £6862.80
Total amount payable £10110.40

I assume the figure they quoted (£5059.20) being half of the total amount payable.
Cash price of car was £8462.80 - £1600 deposit

I thought that by putting a deposit of £1600 of my own money down that that would go towards the balance when combined with the monthly payment???

I suppose in short.. Does a deposit go towards the full amount when terminating the agreement early???

paulmcerlean

VT is not half the period of the agreement, i.e half the 5 years, it is half the total balance paid.

You are short, yes.

ryanm198

Yes but hasn't your deposit already come off the price of the car so your thats nothing to do with your finance that's why the loan amount was £6862.80 rather than £8462.80?

paulmcerlean

ryanm198 wrote: »

Yes but hasn't your deposit already come off the price of the car so your thats nothing to do with your finance that's why the loan amount was £6862.80 rather than £8462.80?

This is correct. The deposit was paid to the car dealer, not the finance company. You cannot VT yet according to your numbers.

Not_so_Richy_Rich

I see, I think?
The person i spoke to at the finance company was non too sure as well. I got two different answers in the same conversation. It was left as "send us it in writing"

It does state I am being charged £1655.60 in total for the credit over the life of the loan.

If that helps???

Not_so_Richy_Rich

Having looked at it again...

£6862.80 amount of credit
+
£1600 deposit
+
£1655.60 charge for credt
=
£10118.40 The total amount payable (as written on form)

half that comes to the £5059.20 they quoted.
Does that mean they have included the deposit and therefore have met their VT figure??

zppp

Not_so_Richy_Rich wrote: »

Having looked at it again...

£6862.80 amount of credit
+
£1600 deposit
+
£1655.60 charge for credt
=
£10118.40 The total amount payable (as written on form)

half that comes to the £5059.20 they quoted.
Does that mean they have included the deposit and therefore have met their VT figure??

If it is laid out like that I would hazard a guess that yes, it is included, as it states that the voluntary termination is exactly half of the above. I may be wrong though..I would call them and ask to terminate, see what they say.

Not_so_Richy_Rich

Thanks for the replies.

Any other thoughts???

~Brock~

Some of the replies to this thread are a bit misleading.

Any deposit, part exchange allowance or other advance payments DO count as payments towards the VT figure. End of.