Finance agreement - VT

Ross39

HI,

My fiance and I have a BMW that's on finance through MotoNova.

We purchased the car back in September 2015. Since then, things have drastically changed money wise (my fiance is now earning significantly less than she was).

We are not behind on payments, but I know in a few months time if her pay doesn't pickup it will be getting close.

Because of this, and because we do not need a car like that, I want to VT the car before we get into a situation we can't get out of.

The full agreement, including interest was - £27,616.23, with monthly payments of £398.67.

We payed a deposit of - £3,695.03

According to our agreement,
"You have the right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the Vehicle and half the total amount payable under this agreement, that is £13,808.12. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the vehicle, you will not have to pay any more."


Looking online our current balance is - £12,760.27, so we have paid £14,855.96.

The thing I'm unsure on before I start the VT procedure, is whether or not they take the deposit into account as part of the amount paid? If they do, I can start now if not, I know I should wait a few more months.

I know VTing will never be straight forward, but the easier I can make it for us, the better.

thanks.

Le_Kirk

Best place to start would be your documentation. Have a read through that and it should inform you, however, on other, similar threads on here, I have read that the figures are based on deposit paid plus monthly payments.

neilmcl

Can we please use the search facility (and read your agreement)!

There seems to be a new PCP/VT thread every day covering pretty much the same information. FYI your deposit is included in the total amount payable, which will be clearly highlighted in your documentation.

JP1978

If you are on HP, VT'ing shouldnt be a problem.

If you are on PCP (it doesnt appear that you are as you have not mentioned any GFV or baloon) you may want to read up more on mileage limits.

Ross39

I did do a search, but with the amount of topics and different questions and answers, i wasnt 100% sure i was grtting the answer i needed.

Yes it is a HP contraxt and not PCP.

But thank you for clearing it up. I feel more confident going forward now.


Ive been through the agreement, and it doesnt state anywhere (or at least i cant see anything or its not clear) that the deposit is part of the repayment.

I know its an obvious answer, but i wanted to be sure before writing to them.

The only thing i am aware is the contract states a yearly mileage, and we are over the mileage by 15000 miles. So ive got that letter to look forward to. (I am aware that legally they cant enforce it, but will try).

neilmcl

Your agreement should state something like Total Amount Payable including advance payment (eg deposit). In fact you've already given us that figure of £27,616.23 and the 50% figure of £13,808.12. Deducting your deposit then you will need to have made payments of £10113.09 before you can VT.

Are you sure it's a standard HP, you don't usually have to specify a mileage, be aware that agreements for PCP will also be headed as a Hire Purchase agreement. Do you have an optional balloon payment or GFV specified in the agreement?

Ross39

Neil,

In the 'key features of the credit product ' section, it states 'type of credit: vehicle hire purchase agreement'.

And also

'The total amount you will have to pay - £27,616.23

Made up of

Deposit - £3695.03
Part exchange - £0
Total amount of credit £17.842.96
Admin fee part a - £0
Admin fee part b - £0
Interest - £6077.24
Option to purchase fee - £1'

The cash price of the car was - £21537.99




Was just about to post when i closed the agreement and noticed on the front, in the pre contract section.

'What you are due to pay us
Your payments under the HP agreement and personal loan for the financed insurance products and services/accessories will be a deposit of £3695.03 followed by 59 monthly payments of £398.67...'

neilmcl

That sounds like a full on HP, I'm surprised you have a mileage allowance attached in that case.

Ross39

In the t&cs
'7.Your right to end this agreement

7.1.5 pay to us an amount of 6(six) pence per mile for every mile you have driven the vehicle over 12000 miles per year since the agreement commenced'

Barstewards!

Ectophile

VT is a legal right under the Consumer Credit Act. What it says in their T&C's is irrelevant.

You don't have to fill out their forms.

At the moment, there is a total lack of legal case law as to whether or not you actually have to pay the excess mileage after a VT. Nobody seems to want to take it to court to get a definitive answer.

sharonjones

Help!!! I have a HP agreement 2 years paid out of 3, the cars engine has blown, HP company own the car but are not interested they say they believe the problem would not have been present at point of sale, I say it must have been a developing problem, they say send evidence of the problem? I was given no evidence it was in full working order when I took it from the garage? I have sent them notification to Terminate but there reply is to go through the FO. The car itself will cost more to repair than what is left on the agreement. Can I still terminate and fight for any charges they may say I owe? they have been aware of this problem since March