Car finance and VT

lolababes

First off Id like to say hello, Im new on here please be gentle :wave:

I have been looking to get a new car currently have a 206cc but have had a 3rd child so we cant all fit in it, so need to get a 5 seater I have a Motor loan Fixed sum agreement with Santander (initially GE money) I am paying a LOT out for a car thats not worth the outstanding balance (have 18mth left to pay from 60) I have been reading up on voluntary termination of contract, can anyone give me any advice on if it is possible with the loan I have? I am going to ring them but want to be armed with as much info as possible first.

Thank you in advance xx

Apples2

You can only VT a car on HP .

If it is fixed sum loan, the car is not secured against it so you can sell it if you wish.

iolanthe07

It depends on the type of credit you have. If it is Hire Purchase then you can voluntarily terminate after you have paid back a half of the total borrowed. This is because the car is not yours, it is 'hired' until the final payment. However, if you do this, be prepared for arguments about the condition of the car. If it is some other form of loan then you do not have this right, afaik. I think 60 months is far too long a period for a car purchase, especially a second hand one, but that is a personal opinion, of course.

lolababes

Thank you for replying and both your advice I will look into selling it privately then if that is possible.

I totally agree about the 60mth term I was silly at the time, just had a bad accident (not my fault though) writing my old car off and WANTED that particular car and the price meant that was the only way I could do it

The exact wording on my agreement from GE Money says Document type: Motor loan Fixed sum loan agreement regulated by the consumer credit act 1974 if that helps

Common_Sense_2

easiest thing to do is check your documents for a box that has at the top the words "TERMINATION - YOUR RIGHTS". if it does then it is an HP and you can VT - if it doesn't, then you can't!

simples!

Common_Sense_2

iolanthe07 wrote: »

. I think 60 months is far too long a period for a car purchase, especially a second hand one, but that is a personal opinion, of course.

true - i agree, but it is normally done to keep the monthly payments affordable for the customers (also gives a slightly lower APR too!)

All too often people don't look long term at these kinds of purchases (nothing against you OP) they just look at the monthly payment and then struggle into negative equity.

nomoneytoday

If you can VT there will be a section on the Key facts doc showing the amounts that you can send the car back at, along with the halves and thirds data

lolababes

Common_Sense_2 wrote: »

true - i agree, but it is normally done to keep the monthly payments affordable for the customers (also gives a slightly lower APR too!)

All too often people don't look long term at these kinds of purchases (nothing against you OP) they just look at the monthly payment and then struggle into negative equity.

None taken xx I agree totally I was very very stupid and learnt a hard lesson from it xx Its not that I cant afford it its the fact we have an extra body lol (could always put the hubby in the boot I suppose)

chanz4

see if peugeot will take it as a trade in on a 207

lolababes

chanz4 wrote: »

see if peugeot will take it as a trade in on a 207

Unfortunately they wont because of the negative equity I owe 3.5k and its worth 2k

KingElvis

Does it have a Technology pack?