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Voluntary Termination of Car Finance - Deposit?
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w.ashcroft
Posts: 9 Forumite
in Loans
Hello All,
Due to a high interest rate, the amount I owe on a car I purchased 1.5 years ago is more than the car is worth so I am looking to exercise my Voluntary Termination (VT) right.
The car was financed through Personal Contract Purchase (PCP) but I am confused with regards to the initial deposit paid to the dealer.
According to the paperwork, the deposit is paid to the dealer (Official Audi Dealership) and then the balance comes from their own finance (Volkswagen Financial Services t/a Audi Finance) - from what I am hearing due to the way this is structured the deposit does not come into play and I have to pay 50% of the total finance+interest before I can proceed with VT rather than 50% of the total purchase price.
Since my deposit was fairly large I am keen to ensure this is correct, since it effects whether I should be able to VT now without penalty?
I am sorry if this has been asked before, I tried searching but couldn't see a clear answer.
Best Regards,
Warren
Due to a high interest rate, the amount I owe on a car I purchased 1.5 years ago is more than the car is worth so I am looking to exercise my Voluntary Termination (VT) right.
The car was financed through Personal Contract Purchase (PCP) but I am confused with regards to the initial deposit paid to the dealer.
According to the paperwork, the deposit is paid to the dealer (Official Audi Dealership) and then the balance comes from their own finance (Volkswagen Financial Services t/a Audi Finance) - from what I am hearing due to the way this is structured the deposit does not come into play and I have to pay 50% of the total finance+interest before I can proceed with VT rather than 50% of the total purchase price.
Since my deposit was fairly large I am keen to ensure this is correct, since it effects whether I should be able to VT now without penalty?
I am sorry if this has been asked before, I tried searching but couldn't see a clear answer.
Best Regards,
Warren
0
Comments
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Doesn't your agreement tell you what the 50% figure for Voluntary Termination is?
I know every HP agreement that I had in the last few years always spelt it out very clearly."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
poppasmurf_bewdley wrote: »Doesn't your agreement tell you what the 50% figure for Voluntary Termination is?
No, there is just a small note about Section 99 in the small print and that I should contact them for details (I have wrote to them). With the way its been structured they wouldn't even know what deposit I paid?0 -
Your VT point is worked out on the total amount payable including deposit. By paying a larger deposit it mean you hit your VT point sooner than is normal on a PCP deal. Don't worry you're not being conned.0
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Your VT point is worked out on the total amount payable including deposit. By paying a larger deposit it mean you hit your VT point sooner than is normal on a PCP deal. Don't worry you're not being conned.
OK I will wait to see what they send through, if it looks like they're not considering the deposit I'll have to pursue it further.
Many thanks.0
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