Voluntary termination issue - please help

Silver-Surfer_2

bigjl wrote: »

As others have said why would you look into VT a credit agreement due to impending redundancy?

Surely there will be some form of redundancy payment?

Which should be enough to see through living expenses till a new job is found.

As already said, you will then need a vehicle.

A weeks pay for every year may not be that much.

CF72DS

Why on earth has this descended into observations about my impending redundancy?! Unbelievable!!

Thankyou to those who have taken the time to share their useful insights into my original questions - you have helped me to make much better sense of what has gone on.

And to the guy who asks why I spent £1000 on GAP insurance. At no point did I say I spent £1000 on GAP insurance. I took out GAP insurance and a warranty at the beginning of the term totalling £1000 - hope this is okay with you? As the last thing I would want to do is not know as much about the going rate for GAP insurance as you do.

And to those of you insisting I have been done a favour by having negative equity concealed in my credit agreement 'as I otherwise would not have been able to afford it' (lol!) THANKYOU!!

My plan is to now write a thankyou letter to the car dealership and nominate them for the nobel peace prize.

If only we had more misleading car dealerships like them in the world, eh?

Cornucopia

It might help others if you gave more detail about how you came to agree or be sold this deal. Was any aspect of it hidden from you? Did the Dealer tell you that the negative equity would be concealed from the Finance Company?

motorguy

CF72DS wrote: »

Why on earth has this descended into observations about my impending redundancy?! Unbelievable!!

Because dumping your car back to the finance company when you are going to need one for your next job may not be the best idea, particularly if you are going to have to use up savings of £2,500 to make that happen.

Its not a criticism. Its common sense. Sorry if that offends you.

CF72DS wrote: »

As the last thing I would want to do is not know as much about the going rate for GAP insurance as you do.

This is a Money Saving Forum. Had you checked the advice given on the main board you'd have found the cheapest ways to get GAP insurance. Or asked on here. Whilst its "too late" now, maybe you'll know that for next time - or someone else might learn from it reading this that dealer GAP insurance is the most expensive way to take it out.

CF72DS wrote: »

And to those of you insisting I have been done a favour by having negative equity concealed in my credit agreement 'as I otherwise would not have been able to afford it' (lol!) THANKYOU!!

WHERE DID YOU THINK THE £2,000 DEBT WENT? Did you think the fairies took it away? Did you not read the credit agreement or have the detail explained to you?

CF72DS wrote: »

My plan is to now write a thankyou letter to the car dealership and nominate them for the nobel peace prize.

If only we had more misleading car dealerships like them in the world, eh?

Hang on pal, YOU had negative equity, YOU asked the dealer to wrap it in to the new deal, and now they're the bad guy?

It sounds an awful lot like you were more focussed on getting a shiny new car than reading the detail of what you were signing up to.. :eek:

molerat

The reason the additional borrowing was wrapped up as insurances was simply so that you could not walk away only paying half of it. Slightly dodgy way of doing it but I can see their point of view. VTing the car leaves them with something but the negative equity was just money with nothing tangible to hold against it.

neilmcl

At the end of the day OP, it doesn't really matter how they've "packaged up" the negative equity fro you last car, you credit agreement will clearly show the total amount payable of which you will have to have paid 50% before you can VT it. You've gone about the wrong way to terminate the agreement, you don't contact and ask the finance company for a settlement figure, because you're not settling the finance, what you need to is send a letter (preferably recorded) stating that you are terminating the agreement.

Worth having a read here: http://www.legalbeagles.info/forums/showthread.php?34548-Voluntary-Termination-of-a-Hire-purchase-or-conditional-loan-under-the-CCA-1974

and:

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

AdrianC

=rizla= wrote: »

If this amount of extra 'insurance' including interest is £4000 and you've been paying it for half of the term why is it £2500 and not £2000??, also the £1000 interest on the £2000 'insurance' or is that on the £3000 including the real insurances? either way seems a very very high apr.

£1k of interest on a £2k 60mo loan is about 17.25% APR.

loskie

did the insurance they mis sold you have redundancy cover?

TBagpuss

OP, as others have said, the first thing you need to do is to read the original agreement and see what it says.

It sounds as thaough the level of interest on the £2,000 you borrowed to pay the outstanding debt on your previous car was high, but provided that your original agreement set out waht the interest would be I think it is unlikely that you can now complain about that.

If you read your original agreement and it does not set out the amounts borowed and the interest payable then you *may* have grounds for comaplaint.

=rizla=

AdrianC wrote: »

£1k of interest on a £2k 60mo loan is about 17.25% APR.

I must be getting old and trusted by the banks, 17% seems a lot to me?