Bought a caravan, now wish I hadn't - help with HP

GazNicki

My reasoning for that is that when I called the creditor, they told me that the VT point is 50% of the finance, not 50% of the total cost.

Therefore, the creditor is looking for 24 months of payments to VT.

However, the balance under the termination section is about 85% of the amount on finance.

Either the amount they have in that section is wrong (thus voiding the agreement), or the information given over the phone is wrong (and the VT amout on the paperwork is wrong).

Nearlyold

Whoever you spoke to at the finance company needs retraining as they have no idea what they are talking about. You can VT when you have paid 50% of the Total Amount payable - exactly as you have worked it in your first post and exactly as the figures in the agreement state. You are correct (in your first post), the agreement is correct, you can VT when you have paid about 7 payments as you will have reached the 50% figure exactly as stated in the agreement

Phone the finance company again ask to speak to a manager, if they still insist it's 50% of the monthly payments raise a formal complaint.

If you VT you'll' still lose a shed load of money though!!

GazNicki

I will lose, I've considered that. Unfortunately the system is wrapped up so tight that I am bound to lose either way.

Right now it's about damage limitation. If I can lose any less, then that's a win in this situation.

It's an expensive lesson.

Herzlos

Can you rent the caravan out to cover the site fees? It sounds like you're going to be losing a lot of money either way, so it may be worth looking at whether you're better off scraping a small loss on it until you hit the VT point, or can keep it to resell later.

GazNicki

Not an option I am afraid. We were planning on renting, and had over £2500 of confirmed bookings withing 6 weeks, however the site wants their fees up front which makes it almost impossible.

Getting rid really is the only option we have I am afraid.

takman

GazNicki wrote: »

Not an option I am afraid. We were planning on renting, and had over £2500 of confirmed bookings withing 6 weeks, however the site wants their fees up front which makes it almost impossible.

Getting rid really is the only option we have I am afraid.

How much are the site fees? If they are less than the amount of money you can make from bookings then you should get a 0% on purchases credit card and pay them on that.


If you voluntarily terminate then your going to be loosing alot of money and really should be the last resort.

GazNicki

I can afford to get more credit out, even on a 0%. That fixes the issue for now, but the fees I make this year would need to go to the park for the. Ext year, leaving me with the debt on the credit card too.

The fees are £5k when all the extras are taken into consideration.

I honestly wish I never bought it.

While it looks like I'm going to lose a lot of money now, by trying to sustain it now I'm digging myself into a bigger financial hole.

I would rather cut my losses now and make a start on reviving my finances over the next 36 months than trying to butter this over and making things worse.

GazNicki

The main thing I have here is that while VT is a drastic option that is costly, it really is my best option.

Now, the amount the terminate the agreentment under the VT rules should be 50% of the amount taken out on finance including any interest and fees. This amount shown in my agreement is wrong.

Can I really VT after just 7 payments as my agreement suggests (a 48 month agreement)?

Is the agreement incorrect thus void?

Nearlyold

GazNicki wrote: »

The main thing I have here is that while VT is a drastic option that is costly, it really is my best option.

Now, the amount the terminate the agreentment under the VT rules should be 50% of the amount taken out on finance including any interest and fees. This amount shown in my agreement is wrong.

Can I really VT after just 7 payments as my agreement suggests (a 48 month agreement)?

Is the agreement incorrect thus void?

GazNicki The amount shown in your agreement is correct, you can VT after just 7 months payments because you paid a 47% deposit. The VT trigger point is 50% of the Total Amount Payable which includes all interest & fees but also includes part ex allowances and deposits towards the 50%. As a retired finance compliance specialist I can assure you that what the finance company have told you is complete b******s! NB Your agreement is not void because its not incorrect

GazNicki

Thank you.