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

motorguy

GazNicki wrote: »

My main issue is that the balance for the VT is wrong.

The balance for VT should be 50% of the amount on finance, not the total amount of the entire purchase. When I phoned the creditor, they confirmed that it was wrong.

Basically, the amount to VT should be 50% of the finance, which including interest is 50% of £7997.28 = £3998.64. However, they have taken the full balance including the cash deposit into consideration.

My question is, where do I stand now.

Its 50% of the total transaction cost, including deposit.

You paid a deposit of £5691, half the total payable is £6844.14

So once you've made £1153.14 worth of payments, you can hand it back and walk away.

motorguy

GazNicki wrote: »

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).

Whoever told you that on the end of that phone is entirely wrong.

GazNicki

Thanks everyone.

As Nearlyold and MotorGuy have pointed out, the VT point is correct. I have had conflicting advice which suggested that the cash deposit was not included in the VT point, including from the creditor, but that has been proven wrong.

Following my phone conversation to them (made before I asked on here) I recieved a letter 8 days later stating that if I wish to VT, I can and will have nothing else to pay. I have 14 days from the date of the letter to respond (which happens to be Tuesday) so I am sending this off signed and posted recorded.

While I know I have lost money on this (I could have had a great holiday in America for the money) I have limited my losses over the next few years which is a plus.

iolanthe07

Glad it is sorted for you. Sorry you lost money, but most of us make rash mistakes at some time. I have a caravan holiday park near me and the annual fees are eye watering; it only makes sense if you can let it out for the summer, although to be fair the site owners do make the point that their caravans are not an investment.

GazNicki

Yep, when you buy with your heart it often costs you.

It's a mistake I shan't be repeating though, that's for certain.