VW Finance Purchase Fee

~Brock~

ihatedebtcollectors wrote: »

Thanks for the replies.

Surely it's an unfair term? How can we purchase something we already own? The HPI register can only have cars on it where there is HPI outstanding?

You dont already own it though. HP=Hire Purchase......i.e. you hire the goods until you have paid what is owing under the agreement at which time you purchase them During the period of the hire they are not yours.

Title does not pass to you until ALL outstanding sums due under the agreement are paid. You dont own 95% of the car before that last £150 is paid...you own 0%. When you have paid it you will own 100%.

ihatedebtcollectors wrote: »

I disagree that they can "trash" my credit file. This "option to purchase" was not part of the original loan, thus will not show as outstanding on my credit file. Once I've paid the instalments, settled the account - my credit file will show £0 AND NOT£150.

The fee is part of the agreement you/your partner entered into. What part of this is proving difficult for you?

ihatedebtcollectors wrote: »

Best they can do is try and repossess the car at the end of the term if I do not pay. This involves court and them proving the car is theirs surely..?

It will be very easy to prove the car is theirs by 1) providing a copy of the HP agreement and 2) providing a statement of the account showing that you still owe £150.

ihatedebtcollectors

It's the principal. That's all.

Edit: That's the point mate = IT IS OPTIONAL. IT DOES NOT MAKE UP THE BALANCE OF THE LOAN.

~Brock~

ihatedebtcollectors wrote: »

It's the principal. That's all.

Edit: That's the point mate = IT IS OPTIONAL. IT DOES NOT MAKE UP THE BALANCE OF THE LOAN.

It is optional because purchasing the vehicle at the end of the hire period is also optional !!! you could always hand it back instead.....

ihatedebtcollectors

None the less, the dealer has said this fee would not apply if we settle early. I'll go there today and get this in writing. Job done.

nelly12

The dealer can tell you whatever he wants, I wouldn't waste your time and energy going to the dealership because they will never put that in writing for you. The OTP fee forms part of the settlement figure and you you would be entitled to a proportionate refund if you settle early.

Please don't waste anymore of your time on this as the law will never be on your side. There's been some good explanations so far that you should take heed of.

Common_Sense_2

ihatedebtcollectors wrote: »

None the less, the dealer has said this fee would not apply if we settle early. I'll go there today and get this in writing. Job done.

As already stated - the dealer can tell you anything he wants - he isn't the finance company. It's the finance company that you want to be talking to (although you are wasting your time)

chanz4

every car finance has this clause, someone has to be employed to make the hpi change. I know and call tell you dont want to hear it but they can and will trash your file, you signed the agreement agreeing to the fee