Voluntary Termination - Quite Strange Situation

mtthwphllps

Hi,

This is a very odd scenario I am in so please bear with me, read this carefully and see if you can help me out.

I bought a car in May and took out finance from Marsh Finance...my credit score wasn't great. I have had the car up until now and made all the payments.

I have been advised by the DVLA that I can no longer drive a manual vehicle as I have a problem with my left leg. I have had conversations with the dealer and the finance company about what I can do. As well as this, because of my leg problem I have had to give up work.

The dealer says that my car is now only worth £4-5k. I paid £8k for it in May!! I owe £7500 to the finance company.

I am now in a minimum of £2500 negative equity with this vehicle.

Whatever car I buy, the finance company will refinance the car but with the extra £2500 on top, only if the car I buy is under 'book' value...not an easy find.

My other option is to voluntarily terminate the agreement, give them the car back and then make an arrangement to pay them some money off, it won't be much.

How can I sort this out????? Please can someone advise me????

bobbymotors

on your agreement somewhere it will state 'total amount payable under this agreement'.


Whatever that figure is, add up what you have actually paid so far.


This will be:


Your deposit and / or part ex value, plus
total of any repayments you have made


If the total you have paid is 50% or more of the total payable you can VT. Otherwise, you can't.

mtthwphllps

You can VT at anytime, they've already told me this, just that I'll have an outstanding liability for the 50% amount

Moto2

Just out of interest have you plugged the car details into webuyanycar.com just to see where the bottom of the value is?

mtthwphllps

Yes, 4330 is the bottom book value. The car cost me just under £8k in May!!!

bobbymotors

mtthwphllps wrote: »

You can VT at anytime, they've already told me this, just that I'll have an outstanding liability for the 50% amount

Correct, but once you have paid half you can hand it back andowe nothing, which is what I thought you wanted to do

straighttalker

What car is it if you don't mind me asking?

mtthwphllps

It is a Mini Cooper S Convertible JCW 2008

hawkeye9999

I broke (well shattered) my left leg a few years ago and was looking at automatics, and the mechanic suggested something along this

http://www.pmeautoconversions.com.au/solutions/driving-controls/electronic-controls/electronic-clutch


In the end I loan a automatic of a mate for a few months, so never looked at it in much detail.

dannyrst

The cheapest Cooper S JCW I can find on auto trader that is 2008 plate is selling for £7,500?

forgotmyname

If you VT it so early wont they want all the money right now?

I have a feeling that they will mark it down as unpaid and you will struggle to get finance on anything else.