Returning a Car with only 7 months left to run

chrisrjohnson

Hi,

I got a car on finance for £5035 and have made 29 payments totaling £6650.

I'm looing to replace it and have been told by a number of dealers to VT the agreement as the cars value is less than the outstanding amount.

Question! If I VT'd the car as I have paid more than its inital cost would I be liable for any extra costs?

Question! Is this ethical of the dealers as even though I have paid a high APR to the finance compaby I have made every payment so far and do not wish to tarnish my already poor reputation.

lawrie28

Whats the car, how much is the monthly repayment (£230?) so you have 1605 left to pay?

VT won't help your credit rating.

Is this based on dealers valuations, or a private sale value?

Car dealers, Ethical...........?

chrisrjohnson

lawrie28 wrote: »

Whats the car, how much is the monthly repayment (£230?) so you have 1605 left to pay?

VT won't help your credit rating.

Is this based on dealers valuations, or a private sale value?

Car dealers, Ethical...........?

Unfortunatly some kind person took out 2 panels of one side of the car and drove off. we couldn't afford the repair on our insurence so the value is less than the current remaining amount.

Number of MOT issues would make it not worth carrying on with. Shame coz its a damn good runner otherwise.

t508

Accident Damage and MOT issues would have to be put right to VT, or the finance company will charge you the cost as you havn't looked after it well enough. Dealers are generally only after the best deal for themselves.

chrisrjohnson

t508 wrote: »

Accident Damage and MOT issues would have to be put right to VT, or the finance company will charge you the cost as you havn't looked after it well enough. Dealers are generally only after the best deal for themselves.

Yes but we have paid off the price of the car + interest so would that happen or would they just auction it off?

flashg67

Agree with t508, somewhere in the small print of your HP agreement will be a condition that you take good care of the car (fair wear & tear excepted) - I know there is such a clause in my agreement - otherwise we'd all treat our cars like !!!! then return them with no penalty wouldn't we!

NeverEnough

The car will go to auction, but in order to VT it, it has to be in good order - with smashed panels it isn't, so you will end up having to pay the finance company for the repairs which may well end up more than the £1600+ you still owe on it. Not what you wanted to hear, but VTing means the car has to be in very good order or you will be charged a lot of extra.......

chrisrjohnson

NeverEnough wrote: »

The car will go to auction, but in order to VT it, it has to be in good order - with smashed panels it isn't, so you will end up having to pay the finance company for the repairs which may well end up more than the £1600+ you still owe on it. Not what you wanted to hear, but VTing means the car has to be in very good order or you will be charged a lot of extra.......

Even though its effectivly paid for?

Clive_Woody

chrisrjohnson wrote: »

Even though its effectivly paid for?

But it is not paid for until you have made all of the payments you agreed to when you signed the contract.

I appreciate you have paid more than the initial valuation of the car, but this is how finance works. You agree to repay a certain amount or you can VT the deal so long as you meet the criteria agreed to in the contract you signed (i.e. car returned in good condition).

I appreciate this is not what you want to hear.

chrisrjohnson

Dosn't help when the financier (sp) dosn't give you a list of dealers where you can try and add the difference in the value onto the new deal!

chrisrjohnson

Clive_Woody wrote: »

I appreciate this is not what you want to hear.

Just need to get the fact right! Thanks