VT before 50% mark

Jazziboo

Hi all,

So i came across someomes response on one of the really old threads where this person stated that you can VT before the half repayment mark, however the finance company would expect you to pay the difference that would bring you to the 50% value (which is fine), eg. Say you only paid 10% back and decide to VT at that point, the finance company would expect you to pay 40%.

My question is has anyone on here actually done this and what was your experiance? (did you have to pay the difference as a lump sum?)

Im due to reach my 50% repayment mark in December, but if i could return the car sooner id be saving on my high road tax, insurance and fuel costs (as im struggling now). And im just concerned about any looming repairs - my car is 10 years old and around winter always needs something to fix (hence if i could return it before hand would be ideal)

Thanks

neilmcl

A VT is not really defined by the period at which you can terminate but more to do with the liability that you must pay, ie, 50% of the total amount payable under the agreement. Therefore you can VT at anytime you like but you must pay off the 50% liability.

motorguy

Yup as has been said, the ability to VT was brought in at a time when people were being chased by finance companies for disproportionate amounts of money when they could no longer afford to pay.

Thus it was introduced that if you returned the vehicle the finance company could pursue you for no more than 50% of the total transaction cost, subject to fair wear and tear.

Of course, this was designed to protect people who could no longer afford to pay their finance, whereas now its seen as an exit route by those who moreoften just "fancy a change".

lopsyfa

If you have a driveway/garage, you can SORN it and stop using it till December. So you can keep paying your monthly payment till then and then VT.

But won't you need another car for work/family? If you do, it will likely be cheaper to keep using your current car and keep paying the monthly payment till you can VT compared to buying another car that you will still need fuel, road tax and insurance.