Santander Voluntary Termination - good idea?

WellKnownSid

bigjl wrote: »

But on checking the Kia website several of the later cars have warranties that are now limited to 100k miles.

The cover you'll get from Kia on a 6 year old car will not be the same as a 6 month old one. There are expectations of reasonable wear and tear and reduced performance / efficacy of components.

Plus, the "something expensive going wrong" on a 100k mile car will usually be down to pure wear and tear items not covered by a warranty anyway.

Mercdriver

bigjl wrote: »

The reason I thought that (the OP owns a Hyundai) was that I was looking into used Kia's and Hyundais to buy at 3yrs.

Must have missed the Vauxhall bit.

As I though 7 yrs would be better than 5 I looked into it in more detail.

But on checking the Kia website several of the later cars have warranties that are now limited to 100k miles.

The website even listed which years had unlimited miles and which had 100k.

Still 100k miles is more than enough coverage for a car that is only going to get used for going to work and shopping.

I thought Vauxhall had a lifetime warranty rather than 5 years?

Has that now stopped?

The Vauxhall 'lifetime' guarantee was limited to 100,000 miles. There was a time when 100,000 was a car's lifetime. Generally that is no longer the case. I bought my 2010 E class 30 months ago with the mileage at 52k. It's now 3 services on and at 102k. I hope I have at least another 100k left!

verityboo

Shack_attack wrote: »

I VT'd my Astra 3 years ago with Santander and it hasn't affected me obtaining credit.

RE giving the car back, if you have a mileage allowance they will pro rata this to the date you give the car back and charge you for each mile you go over. This can be quite expensive if say you've done 50000 miles more and it's 5p per mile.....

I thought that with V.T. the mileage is not relevant, it is a right to return the vehicle once 50% of the total is paid (unless they manage to get you to sign a document to agree to pay the excess mileage)

verityboo

michaeld17 wrote: »

From all my calculations, I'm never going to be at a point of positive equity, hence the recommendation for the VT.

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If the loan ends in 2 years I presume you will own the vehicle outright. That statement then doesn't really make sense. Sounds like you want to change the car and are making up reasons.

Shack_attack

Apologies, I 've seen the OP said Hire Purchase as oppose to PCP

verityboo

Shack_attack wrote: »

Apologies, I 've seen the OP said Hire Purchase as oppose to PCP

It applies equally with a PCP but there may be a fight (and one has to watch what your asked to sign) as outlined on many sites such as here:

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

which says "Excess mileage is the major contention of voluntary termination on PCP agreements (see our comments section below), and it is a bit of a grey area. It is important because a used car’s value is directly linked to its mileage, and a car usually depreciates faster than you are paying it off at the start of the agreement. So VTing a car with high mileage means the finance company loses even more money.

There is no specific provision for excess mileage charges in the law, so in theory you can’t be charged for exceeding your mileage allowance. However, if you have exceeded the pro-rata mileage allowance, you can expect the finance company to come after you for an excess mileage charge. You do not have to pay this, but you will need to be prepared to fight them – potentially for months and against threats of legal action."