Voluntary Termination Advice

ralphingizmo

Hi all, this is my first post so if in wrong place or I have done something wrong please let me know. All help will be appreciated.

I have recently hit my 50% point on my finance agreement, due to a change in my situation I need to terminate the agreement. After reading many forums and looking through several threads I was hoping to clear some bits up.

I have spoken to finance company (GMAC) who told me they would send a pack out for the termination which I need to read through, sign and send back. The information I found stated I have to send a letter to then stating my intentions and the only document I need to sign is the vehicle appraisal form (so long as I agree with it).

So firstly has anyone done a voluntary termination through the fiance company following their lead?

Or should I stick to my guns and do it via letter and only sign the vehicle appraisal form when collection/ return is arranged?

Ideally need this sorting sooner rather than later so any advice would be great.

Thank You

Foxy-Stoat_3

Read your contract and follow what the company want.

I would of thought that you would want to get the vehicle checked before making your final decision, just incase there is any damage that they can charge you before you hand it back.

ralphingizmo

The agreement clearly states I can terminate after paying 50% I was just wondering what others have done in the past.
I have had a private appraisal carried out and the car is in very good condition for age.
Some people have stated not to sign any pack sent by finance company and just send letter to inform company and wait for collection.
Thank You

smitchy73

Yep I'd agree with your thoughts. You don't need to sign anything the company sends you, and if you do be very very careful and read it all very carefully. A lot of them make sure to add in that your accepting liability for anything and everything that is wrong with the car as well as any excess mileage, I refused to sign it and send them a letter to their email address and this was accepted and VT put into process.
Make sure you get it cleaned outside and in there are no problems with paintwork, lights etc, if so you might be better to fix them first.
There are some good hints and tips on other sites that I found with a simple Google search.
There are also template letters you can use, go back to GMAC and ask if they're happy with the verbal request or in writing as you're not prepared to sign their form (if you're not happy with it).

rs65

ralphingizmo wrote: »

Some people have stated not to sign any pack sent by finance company and just send letter to inform company and wait for collection.

What is in the 'pack' you are being asked to sign?

xHannahx

Hubby did a voluntary termination with peugeot finance last year. The forms were straight forward and peugeot were easy to deal with. They then appointed a 3rd party to collect the car.
They charge a fortune for any marks and scrapes, as we were provided a leaflet with repair costs.
Ensure the car is polished well before they collect it, they charged him £40 for light scuffs to be polished out and another £10 for a slight fade to be polished out. £50 for a polish seemed steep when he could of done it himself for a few quid and a small effort.

mik777

Of course it all depends on your own circumstances but just wondering if the hand back option is the best thing to do? I work in the trade and generally the hand-back option is only rarely used, usually just when a car is valued at a lot less than the amount left to pay.


Often there is positive equity in the car though, which can be used towards taking out a different car, eg one with lower monthly payments. You swap your car in and the dealer takes care of settling finance as part of a new deal.
This way the dealer takes your car in and values it as it stands.
As others have said if you use the hand-back option it goes to the finance company and they will charge for every little mark or any excess mileage.


You can request a trade valuation from any dealer and get a settlement figure from your finance company and then see if there's any positive equity before you make a decision.