Car finance and voluntary termination

indebt123

In Feb 2011 we took out car finance with a company specialising in finance for people with bad credit.

A few weeks ago, we decided to change the vehicle and asked about voluntary terminating the agreement. We owed far more still on finance that what the car is currently worth. As we have maintained payments and paid well over half of the initial agreement of 4 years, the company said this was fine and set out their requirements how to do this.

So last week, we purchased a newer car and returned the first car back to the company, along with valid road fund licence, MOT, log book, keys and owners manual. The car for its age (56) plate is in very good condition.

Today we have received a letter from the company stating that it should have a full service history (advised as if applicable in clause and didn't come with one from garage when purchased,) we have maintained it ourselves. On the MOT in February, it came with an advisory about the brakes and possible pads needed doing. It was an advisory and right up to 2 weeks ago, we were advised that they were still ok. The company are saying they will need to pay someone at our expense to get these done as they are sure the car will fail its MOT if done today. On the back bumper of the car, their is a very minimal scuff. It has not been in an accident and does not deter from the overall good condition of the vehicle. !!!!!!, the car is a 56 plate!!

They have stated that for all of the above, a service, new MOT and to get the bumper repaired, will be at our cost and we have options of how to go about this, all very costly or we can make an offer.

Me and the OH are so angry as that car had damaged to one of its doors when purchased from the garage and literally within two weeks of buying the vehicle, the garage went bust. We paid to have this done at our expense as the finance company did not want to know at the time but happily sold us the finance in the first place, in our mind, knowing this. To us, the car is in better nick now than when we purchased it two and a half years ago, we have looked after it and not done anything wrong or illegally.

Any advise where we go from here? We have sent them a nice email today pointing out what we see as fair so am awaiting a reply.

Is there anywhere we can seek advice if we need to?

Any help please.

indebt123

bump please

chanz4

ask them for photos of the bumper when you took the car, bet they don't have them...then call their bluff

BugsyBrowne

When you VT a car always make sure it's fully serviced before handing it back because if it's not you'll most likely see some hefty charges come your way.

And a good valet would help too.

indebt123

We have returned the car with a documentation required and in good clean condition.

We have tv cars before with no problems.

Want to know how far the finance co are likely to take it and how far we can.

poppasmurf_bewdley

Unless your Finance Agreement stipulates that the car has to be maintained with a full service history, then they are trying it on.

You just need to return the car in a good condition 'for it's age and mileage', ie they cannot expect a seven year old car to be in showroom condition.

Why did you return it with car tax? You should have cashed that in prior to returning the car.

indebt123

poppasmurf_bewdley,

The agreement did stipulate that the car was to be taxed to VT. Tbh, the tax runs out at the end of December anyway.

The agreement states the return of the vehicle with an MOT, car tax, log book, owners manual and service history (if applicable.)

Our argument is that the car did not come with a service history in the first place. We have maintained the car fully during our 2 and a half years of ownership.

We are expecting a letter tomorrow or Monday after we sent a snotty email to the director yesterday and fear they will want to take it further.

Cornucopia

You could make them a "full & final" offer.

Or you could propose that they subject the car to an independent assessment.

Or you could suggest that you have the work undertaken by your own suppliers at your cost.

It doesn't sound like more than £250, so may not be worth getting too heroic about it.

You could try the CAB for further advice, or a cheap 30-min session with a solicitor.

poppasmurf_bewdley

If the car didn't come with a service history, then they can't expect it to have one now.

Andik1962_2

I want to VT my car on an HP loan. I will soon be at 50% of the total repaymet amount. The loan company state that they are obliged to the Credit Reference Agencies to record the VT on my credit history. Is this correct and what effect would it have on my cedit rating and my ability to get finance in the future?

National_Debtline

Andik1962 wrote: »

I want to VT my car on an HP loan. I will soon be at 50% of the total repaymet amount. The loan company state that they are obliged to the Credit Reference Agencies to record the VT on my credit history. Is this correct and what effect would it have on my cedit rating and my ability to get finance in the future?

Hello there,

Your creditor may be able to note your file to state that you have exercised a voluntary termination. It should not cause detriment as you have not missed any payments under the contract.

Hope this helps.

David @ National Debtline