Voluntary Termination of Car Finance Question

jimmysp

Hi, I know there is a few threads already on this subject but I can't seem to find the answer am looking for.

My question is, when 50% of the agreement is paid you have the right to terminate the contract and hand back the car, however what does the 50% figure relate to, is it 50% of the original amount of credit or something else?

Just to give you some figures (in-case it helps), the total amount of credit was £8251.39 @ 12% interest p/a over 60 months, I have made approximately 26 payments of £183.94 totaling £4782.44

Thanks in advance.

jimmysp

Can anyone help?

poppasmurf_bewdley

The agreement itself will state the amount that is to be used for the 50% calculation.

[Deleted User]

if its a 60 month agreement then the 50% point is from month 31 onwards

howie94

Hi there

Ive done this 3 years ago, if you check your loan agreement it will tell you the total amount of when you can voluntary terminate. I hope this helps....

cheers

CrazyAngel_3

Hi

If you want to terminate under the half rule you must pay 50% of the TOTAL AMOUNT PAYABLE under the agreement, plus any arrears, and outstanding charges. In addition, you must return the vehicle in a satisfactory condition excluding fair wear and tear.

Generally this means free of dents, scratches, upholtery rips or burns. It also needs to be roadworthy, i.e, MOT standard so all tyres must be road legal etc etc. Hope this helps.

bigadaj

Just wondered if there were any views on whether pcp with vt would make car purchase worthwhile, ie whilst you are paying a moderately high rate of interest this may be less than devaluation of the car asset.