Car finance voluntary termination.

finally_solvent_2

2 years ago , my son who was 19 at the time purchased a car through Toyota finance on 4 years credit. At the time even though he was 19 the finance company asked for a guarantor. My sons step farther guarantored for him . Now 2 years later my son has decided he can no longer afford the car and wants to do a voluntary termination. Although he has made half the payments and is entitled to do so, I have several questions that are concerning me.

Firstly my son has not kept the car in good condition and to be honest it is in a very shabby condition both inside and out, neither has he ever had it serviced. could my son be charged heavily for repairs and servicing by the finance company ?

secondly could his stepfather be liable for any of this as he guaranteed this loan although my son is now 21.

~Brock~

finally_solvent wrote: »

2 years ago , my son who was 19 at the time purchased a car through Toyota finance on 4 years credit. At the time even though he was 19 the finance company asked for a guarantor. My sons step farther guarantored for him . Now 2 years later my son has decided he can no longer afford the car and wants to do a voluntary termination. Although he has made half the payments and is entitled to do so, I have several questions that are concerning me.

Firstly my son has not kept the car in good condition and to be honest it is in a very shabby condition both inside and out, neither has he ever had it serviced. could my son be charged heavily for repairs and servicing by the finance company ?

Yes. Section 100 of the Consumer Credit Act 1974 sets out what may be payable. Paragraph (4) is relevant to this situation.

finally_solvent wrote: »

secondly could his stepfather be liable for any of this as he guaranteed this loan although my son is now 21.

Yes. He is the guarantor. At the time of agreeing to the loan the lender seemed to have had their doubts about your son being able to fulfil his obligations under the contract so required some extra 'insurance'. Let's hope your son doesn't prove them right.

pottski

In order to VT you must have paid half of the total amount payable on the agreement, this is not necessarly half way through the agreement (deoending on what type of agreement it is). Call the finance company and find out if you have paid enough to VT at this stage.

~Brock~

pottski wrote: »

In order to VT you must have paid half of the total amount payable on the agreement, this is not necessarly half way through the agreement (deoending on what type of agreement it is). Call the finance company and find out if you have paid enough to VT at this stage.

You dont have to have actually paid half before you VT, but if you haven't then you remain liable for the difference.

pottski

~Brock~ wrote: »

You dont have to have actually paid half before you VT, but if you haven't then you remain liable for the difference.

Yes this is correct, sorry my post wasn't 100% accuarate.

finally_solvent_2

Thank you all that have so far commented on my first post on this site. My son has been in touch with Toyota and they have confirmed he has paid enough and is able to do a voluntary termination. They have said the car must have a current mot and have had its due services. It has an mot but has never been serviced and is dented and scratched and the interior has several cuts. So i recon he could be in for a nasty shock when a big bill drops through the door for a respray and new interior panels !!!

As far as his step father is concerned i was furious when he guarantored this loan as i knew it was well beyond my sons means. i suppose it will serve him right if he ends up having to pay for this.

sharpy2010

finally_solvent wrote: »

As far as his step father is concerned i was furious when he guarantored this loan as i knew it was well beyond my sons means. i suppose it will serve him right if he ends up having to pay for this.

Charming, blame the step-father for helping out when he really didn't have to, rather than your son who didn't bother to keep up his end of the agreement i.e. service the car and keep it in good condition.

The dents and scratches the car has make it sounds like he really appreciated the help he was given.

pottski

finally_solvent wrote: »

Thank you all that have so far commented on my first post on this site. My son has been in touch with Toyota and they have confirmed he has paid enough and is able to do a voluntary termination. They have said the car must have a current mot and have had its due services. It has an mot but has never been serviced and is dented and scratched and the interior has several cuts. So i recon he could be in for a nasty shock when a big bill drops through the door for a respray and new interior panels !!!

As far as his step father is concerned i was furious when he guarantored this loan as i knew it was well beyond my sons means. i suppose it will serve him right if he ends up having to pay for this.

Missing service should be around £350, dents can range from a small amount to a large amount so can't really give an estimation. Can he not sell the car and pay off the settlement instead?

finally_solvent_2

I think he owes about £3500 and in good condition the car would be worth between £3,500 and £4,000. But in its present condition i don't think it will be worth what he owes. To be quite honest I'm a bit sick of bailing him out because of his stupidity and he is going to have to deal with this on his own. Both me and his mother have brought him cars in the past but they did not have enough street cred. i am also giving him a grand this month to help him out of other difficulties.

As far as the negative comments i made about his step father, he is a good man but facilitating him getting so much credit did my son absolutely no favours what so ever.