MotoNovo Denying Finance to Customers who VT

bazzyb

Not surprising in the slightest. Many companies who offer HP will proceed with caution if they see a VT marker on somebody's credit profile.

EssexHebridean

Basic business common sense - don't lend money to people who you know from experience are a bad risk. Just because you don't like it, that really doesn't make it "strong arm tactics". If you loaned a mate a grand, and they only paid you back £750, what would you reaction be if they approached you in a year's time for another 1k loan?

SeanG79

You will find most if not all lenders restrict future lending if you VT with them. Most common is only approving a shorter term or requesting a larger deposit, which ensures there is never negative equity, thus making VT unfavourable.

forgotmyname

Have they made any money though? The payments in the first half of the deal may not actually cover the cars depreciation. As you enter into the 2nd half of the agreement then it clears the cost of the depreciation and makes them a profit.

They wont have a massive increase to take into account a customer VT'ing their deal. I would imagine the small amount of customers doing it to be one they just hope does not happen. But if you do VT and they lose money you wont be doing it with them again.

Sounds sensible. If your in a bad deal and need to escape, you still can but dont ask them for finance again. If the need to cancel the deal is greater then it shouldnt matter to you.

[Deleted User]

It's no different to companies like Amex never lending to you again if you default, regardless of how long it has been.

As long as it's not because of a protected characteristic, companies have an absolute right to not do business with you.

OneLife_OneShot

Is voluntary termination when you settle arrangement early or am I missing something here? You save money by not paying x amount of years of interest?

Edit - a quick Google search made me realize what it was.