Volentry Termination - Finance Company Not Playing Ball

Hazkirby

Hi guys

I sent a letter off last week to close motors finance to terminate my HP agreement. I have paid well over the 50% amount required. The reason for VT is because I have another car bought in cash. The car on hp is a c1 and it's depreciated significantly, so the settlement figure is still more than what the car is worth.

I received a missed call Tuesday evening from their Stoke office. They left no message and I tried to call back immediately but had an automated office closed type message, however the call was over 30 mins after they shut anyway.

I then rang again today and the first thing they said was "ah do you want to return your c1 by any chance ?". When prompted to ask when I would receive a letter back they then proceeded to say they hadn't received a letter and that the auction house will be in contact when they receive the letter.

It didn't strike me until afterward that they knew I was ringing about returning my c1 but then said they hadn't received a letter.. from what I understand they must either collect the car or provide a near by location for me to deliver, nothing to do with auction house.


I cba with another dodgey motor firm it's exhausting ! How can I force my hand ?

neilmcl

This may be worth a read - http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

Maybe the reference to the auction house is simply because the auction house (probably BCA) are the ones who will be collecting the car and performing the final inspection.

For future reference, when sending important letters such as a finance termination letter, always send by recorded post.

bigjl

The sensible thing to do would have been to continue to own the C1 until you had equity in it.

As the car you bought for cash will also more than likely now be worth less than you paid for it

Depreciation is part of car ownership, I personally feel the most expensive part.

Though the C1 tends to hold its value fairly well due to demand for cheap and economical cars.

You won't be the first or last to lose money in the short term, loads of people that bought from CarCraft got stuck in negative equity because the cars were hugely overpriced and the interest rates where massive, you could easily be stuck in negative equity for nearly the entire agreement.

The only way to avoid negative equity is when you buy. Make sure you are not paying too much for the car you we buying for a start.

After 6 months or so I am in fairly large negative equity on the Picanto. And that car was relatively cheap for a nearly 2 year old low miles Picanto at the time, and is almost certainly worth pretty much the same as it was at purchase for that reason.

I would resend your letter stating you wish to voluntarily terminate the agreement, and send it recorded delivery.

Hazkirby

Thanks for the replies.