PCP Voluntary Termination

Nearlyold

molerat wrote: »

You seem to have confused VT with ET. Did you sign any paperwork stating you were liable for the shortfall ? Why did you wish to VT so late in the agreement, paying the final payment and handing back at the end of the contract would mean nothing to pay except for any possible damages. The balloon payment and value of the car are irrelevant, that is a risk the lender takes on. You need to start by querying why they want the money and then raise a complaint if necessary. Are you sure this is not for damages ?

Its possible it may not have been a PCP but rather HP with a balloon - these don't have a GMFV/hand back option. That may have been why the dealership advised a VT.

(Incidentally ALL HP of any type agreements allow you to not take ownership of the goods after all instalments including any balloon due have been paid by not paying the option to purchase fee - though if you have already paid for the car it would be a bit mad to hand it back). Only PCP type agreements have the GMFV/hand back option.

Just noticed the OP has got it sorted anyway

ChuckMountain

Hueykablooie wrote: »

Thanks all for wise words, the lender has at last come back with 'account all clear - ignore the letter sent as it is automated' much to my relief !!
Hopefully this thread / discussion will be of use to the next person hit by a Notice of Sums of Arrears letter through the post when you think you have done everything correctly after having reached the 50% of the total price payable.

Make sure you get that in writing though from them. You want a physical record of that conversation in case they "forget" again.

Hueykablooie

Thanks ChuckMountain, I have had it in email form too and will keep it plenty safe!

Sunshine321

Hello,
I have three months left to pay on a PCP but wish to take a VT as I am going to start with a new vehicle leasing company next week. I have done 60+% of my contract.
I wanted to know;
1) can I take VT?
2) do I simply send a letter like the examples on legal beagle to VT and not sign any forms my current dealer sends?

Any other advice?
Thanks

ChuckMountain

1) Yes a PCP should be eligible for VT but check what is stated in the contract and what 50% of the amount equates to and that you paid this much.

2) Yes - though its the finance company you need to deal with. It won't be your dealer

3) Check what the car is worth from a cash sales website and see if it is more than your existing finance. Unlikely but worth checking. You can get a settlement figure which would be a bit less that your 3 months + balloon payment as you would save the interest for the last 3 months.