Santander Voluntary Termination

Shack_attack

Hi, Just looking for anyone who can shed light on my situation, Santander are reluctant to help (for obvious reasons) so I wanted to get all the facts straight before proceeding with the above.

I took out a car finance agreement in December 2010 with Santander Consumer Finance and I'm looking to terminate early to get another car.

The agreement is titled 'Conditional Sale Agreement'

The total amount of credit was £10,000 and the total payable was £13,405

This comprised a Cash price of the vehicle of £11,000, an advance payment of £1,000 (from myself) and the charge for credit was £2,405.

The termination figure is £6,702.70 - I think this month's payment (9th May) will be my 27th or 28th.

I look forward to any help anyone could give.

Thanks!

SeanG79

Have a look on the agreement, it will give you the 50% figure as to how much you have to pay back and then can VT.

I am assuming there is negative equity in the vehicle that you aren't simply trading in this vehicle to settle the existing finance?

Be aware that if you VT with Santander they will mark your credit file with the VT marker, they are also unlikely to approve more vehicle finance for you (they will fear losing more money). Other vehicle finance lenders will also view this in a negative light and MAY reduce the term that they are prepared to offer you on finance, to protect themselves from the VT alternatively lenders may insist the next finance is via a fixed term loan as opposed to HP/Conditional sale to avoid the VT in future. All that said, the VT marker is not considered adverse and will not impact on any other forms of credit.

Shack_attack

Thanks for that Sean, you assumed correct - I'd have to stump about 500-1000 pretty much on top of the cars worth.

That termination figure is the 50% marker but what I was wondering is does the £1000 initial payment go towards the amount I've already paid, or is it separate?

SeanG79

yes the deposit as well as all monthly payments go towards the termination figure. You need to have paid 50% of the initial purchase price + all interest charges and fees.

jellie

Have you asked Santander for a VT liability statement? They will need to inform you in writing how much you owe them if you VT, even if this is £nil.

You just need to ask what your liability would be. I'm not sure why they would be reluctant to help - they can't refuse to tell you, it's information you are entitled to whether they like it or not.

CB1878

If you are looking to get another car, and you still want the VT option then I would say get passed on another HP agreement before you initiate a VT with Santander. Ideally you should get the motor dealer to do this with another finance house, Black Horse or similar. VT should not be detrimental to your credit score, as it is a legal right you have, however in the real world the finance houses do not necessarily like 'switched on' consumers!

Shack_attack

Hi CB, that was my plan, I'm getting someone to fix a couple of scratches and scuffs on the car at the weekend, and then ordering my new one before writing to Santander.

Does anyone have any experience of the charges incurred during Termination, such as delivery or pick-up etc. And what they constitute as Fair wear and tear?

Cheers

CB1878

Shack_attack wrote: »

Hi CB, that was my plan, I'm getting someone to fix a couple of scratches and scuffs on the car at the weekend, and then ordering my new one before writing to Santander.

Does anyone have any experience of the charges incurred during Termination, such as delivery or pick-up etc. And what they constitute as Fair wear and tear?

Cheers

I used to be a finance manager at a motor dealer an we had a couple of VT's over the years. My only advise is do not leave the finance company any 'grey areas'. Agree a time and place to pick up, and I would be pretty aggrieved if they tried to charge me to do so. Offer to drop the vehicle off back at the car dealer, they will probably refuse but may put them on the back foot in terms of trying to charge you.

As for 'wear and tear' then it is the condition expected for that age and mileage of vehicle. Again ask them for guidelines on this, tyres would be a fav I guess so get them checked and replace if needed. Remember they do not expect them to be new, just what would be expected for the age and mileage of vehicle.

Shack_attack

In the contract there literally isn't any other terms other than ' Fair wear and tear'

In relation to the dealer, this was pentagon in Yorkshire as I'm in Manchester. For a cost they will pick up from my home address I assume?