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VT confusion

edited 30 November -1 at 1:00AM in Motoring
46 replies 2.3K views
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  • ChlonatbenChlonatben Forumite
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    Dr Eskimo - I didn’t know until I got my statement after they told me I owed £1750.

    Motor Guy - apart from the actual VT letter I sent to them and the paperwork when I handed the car over, I haven’t signed any other paperwork
  • motorguymotorguy Forumite
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    Chlonatben wrote: »
    Dr Eskimo - I didn’t know until I got my statement after they told me I owed £1750.

    Motor Guy - apart from the actual VT letter I sent to them and the paperwork when I handed the car over, I haven’t signed any other paperwork

    You'll need to ring them then and ask why if you've done a VT and you've paid more than 50% they are billing you for any shortfall in value.
    Just because you're offended doesnt mean you're right
  • ChlonatbenChlonatben Forumite
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    I rang them today and that’s all they would tell me, that it was a shortfall and I needed to pay. It has been passed to a debt collection agency who have also contacted me re the outstanding balance! They’re just passing me from one to the other and I’m getting nowhere so I’ve told both of them I’m prepared to go to court over it
  • AdrianCAdrianC Forumite
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    Chlonatben wrote: »
    I have calculated 50% of the total transaction. Total was for £14000 including interest, deposit, admin charge etc and I have paid back £7350.
    The deposit/"initial payment" is not part of the finance package.
    The balloon/"option to purchase" is. You didn't mention that. Does the £14k include the balloon?
  • ChlonatbenChlonatben Forumite
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    There’s no balloon payment or option to buy.
  • edited 19 June 2019 at 10:35PM
    NearlyoldNearlyold Forumite
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    edited 19 June 2019 at 10:35PM
    AdrianC wrote: »
    The deposit/"initial payment" is not part of the finance package.
    The balloon/"option to purchase" is. You didn't mention that. Does the £14k include the balloon?

    Sorry but that's not correct in respect of the deposit - Any Deposit is counted as part of the "Total Amount Payable" and also counts towards achieving the 50% threshold for a VT

    Customers who elect voluntarily to terminate a contract, must comply with the following:

    Pay or have paid at least 50% of the total amount payable under the agreement to the finance company. The total amount payable comprises everything the customer would have paid if the agreement had run its full course including the deposit, amount borrowed, interest and all fees and charges.
    Bring up to date any arrears that are owed to the finance company, even if this results in more than the 50% being paid.
    Return the goods/vehicle in a reasonable condition for their age and mileage.
    Write to the finance company to explain the option they wish to take - this is known as the “surrender” or “voluntary surrender” letter.
    Provided the customer has paid at least half the total amount payable and is up to date with his payments and taken reasonable care of the goods, then the goods can be returned to the finance company with no further liability.
  • ChlonatbenChlonatben Forumite
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    Nearlyold - as far as I am concerned I have complied with everything you have said. I never missed a payment, I wrote to them to tell them I wanted to VT and the car was in good condition when I took it to their point of return and I have numerous photos to reflect this. I even took the car to We buy any car for a valuation and they value it at £4100!!

    I suppose my question is, what do I do if they don't close this matter and keep coming for the outstanding money they say I owe?
  • foxy-stoatfoxy-stoat Forumite
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    Not sure how you can be in month 30 of 60 and be in a position where you have paid 50% of the car, where there was no option to purchase. Someone has advised you incorrectly or got their figures mixed up.

    What are all the figures;
    Purchase price
    Deposit
    Interest rate
    Monthly payment
  • edited 20 June 2019 at 11:30AM
    LandyAndyLandyAndy Forumite
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    edited 20 June 2019 at 11:30AM
    foxy-stoat wrote: »
    Not sure how you can be in month 30 of 60 and be in a position where you have paid 50% of the car, where there was no option to purchase. Someone has advised you incorrectly or got their figures mixed up.

    What are all the figures;
    Purchase price
    Deposit
    Interest rate
    Monthly payment

    If it is a straight HP (not PCP) and the OP put in a significant initial deposit?

    A few years ago I bought a vehicle on HP over three years. 50% deposit and the rest over 36 months, 0% interest. I suspect I could have VTd pretty much immediately.
  • foxy-stoatfoxy-stoat Forumite
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    Chlonatben wrote: »
    There’s no balloon payment or option to buy.

    Would suggest it is not HP or PCP - so PCH.

    It would need to be a big deposit though.
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