Car Finance - Moving abroad

Ryano2801

Where do I currently stand with handing my car back?

I am 19 months into a 3 year finance on an Audi, taking out with an Audi main dealer (VWFS is the finance company I am with) at the end of the finance i will either take the finance out for another 2 years, hand the car back in or pay a lump sum to buy it outright. PCP i think???
I have recently been offered the opportunity to move overseas (North America, towards the end of August) and just wondered where i stood with handing my car back, is it possible without a penalty? What sort of penalty am i looking at if not?

I have tried calling them and been on hold for hours on end at various days of the week but to no avail. I appreciate they are very busy with dealing with other people at the moment.
Any help would be appreciated. Stay safe

Thanks

neilmcl

You only really have 2 options. Settle the finance and sell the car (or sell the car first then settle the finance) or you can VT the car and hand it back. In order to VT you must've paid 50% of the total amount payable, which will be highlighted in your agreement. Unless you paid a big deposit it's unlikely that you would've reached the 50% via your monthly payments by August but there's nothing stopping you topping this up to reach this point.

DrEskimo

As above, 2 options: Sell/trade car and settle finance with sale/trade value + any additional funds (if needed), or Voluntarily Terminate the agreement by paying the 50% of the total amount payable.

First thing I would do is get a settlement quote today (usually automated service) and then just stick the reg into WBAC and see what the difference is between the current settlement for the finance and the current trade value. You are likely to be severely hit with trade values currently given the COVID-19 restrictions.

Next, look at your finance documents and find the 50% payable amount on your paperwork. Work out how much you have paid so far (deposit + 19 monthly payments) and deduct that from the 50% payable amount.

See which one is cheaper and do that.

Ryano2801

DrEskimo said:

As above, 2 options: Sell/trade car and settle finance with sale/trade value + any additional funds (if needed), or Voluntarily Terminate the agreement by paying the 50% of the total amount payable.

First thing I would do is get a settlement quote today (usually automated service) and then just stick the reg into WBAC and see what the difference is between the current settlement for the finance and the current trade value. You are likely to be severely hit with trade values currently given the COVID-19 restrictions.

Next, look at your finance documents and find the 50% payable amount on your paperwork. Work out how much you have paid so far (deposit + 19 monthly payments) and deduct that from the 50% payable amount.

See which one is cheaper and do that.

Thank you both for your responses.
I have tried WBAC and they aren’t currently operating or giving out valuations unfortunately.
I think my best bet will be to sell the car and then pay the difference on the settlement figure. The problem will be in the current climate, firstly finding a buyer and secondly finding a buyer that will reach the true valuation.

DrEskimo

Ryano2801 said:

DrEskimo said:

As above, 2 options: Sell/trade car and settle finance with sale/trade value + any additional funds (if needed), or Voluntarily Terminate the agreement by paying the 50% of the total amount payable.

First thing I would do is get a settlement quote today (usually automated service) and then just stick the reg into WBAC and see what the difference is between the current settlement for the finance and the current trade value. You are likely to be severely hit with trade values currently given the COVID-19 restrictions.

Next, look at your finance documents and find the 50% payable amount on your paperwork. Work out how much you have paid so far (deposit + 19 monthly payments) and deduct that from the 50% payable amount.

See which one is cheaper and do that.

Thank you both for your responses.
I have tried WBAC and they aren’t currently operating or giving out valuations unfortunately.
I think my best bet will be to sell the car and then pay the difference on the settlement figure. The problem will be in the current climate, firstly finding a buyer and secondly finding a buyer that will reach the true valuation.

Absolutely.

Not a good time to sell a car....unfortunately what a buyer offers will be the true valuation.
You have a few months to wait before having to sell though right?

Ryano2801

Yes I have a few months yet so I’m in no rush - while I’m not using the car I just thought I’d ask the question as I’d get rid now if it was close to the settlement figure!

Polthurne

My mum bought a car on finance in 2016 and the final payment is due at the end of May 2020. In February she had a stroke and will not be able to drive again. My Dad arranged for the garage (Toyota main dealer) to come and see it in March so that they could buy it back and terminate the finance agreement. They came out and agreed a price and arranged to come back for it but the corona virus lockdown took effect and they reported that they were no longer able to buy the car. Since then they have been trying to get clarification of their options but they would only discuss it with my mum who only came out of hospital yesterday. I managed to speak to them in my mums presence so she could confirm security details. The current only options they have been offered is to have the car collected and not pay the final payment (leaving them £2-3000 out of pocket based on the pre-Corona value) or to buy the car outright and try and sell it when the market reopens. Does anyone have any advice as to which option is likely to be better for them or if there is an alternative option ? Thanks

DrEskimo

Polthurne said:

My mum bought a car on finance in 2016 and the final payment is due at the end of May 2020. In February she had a stroke and will not be able to drive again. My Dad arranged for the garage (Toyota main dealer) to come and see it in March so that they could buy it back and terminate the finance agreement. They came out and agreed a price and arranged to come back for it but the corona virus lockdown took effect and they reported that they were no longer able to buy the car. Since then they have been trying to get clarification of their options but they would only discuss it with my mum who only came out of hospital yesterday. I managed to speak to them in my mums presence so she could confirm security details. The current only options they have been offered is to have the car collected and not pay the final payment (leaving them £2-3000 out of pocket based on the pre-Corona value) or to buy the car outright and try and sell it when the market reopens. Does anyone have any advice as to which option is likely to be better for them or if there is an alternative option ? Thanks

Nope, those two options are about it.

If they have the capital to buy the car, they may also get slightly more if they go through a private sale. This will be far more straight forward without finance on the car. Problem is, it's hard to know how long it will take to sell it privately at the price you would want.

Can anyone else make use of it while you wait for the market to pick up and try and sell it again? 

AdrianC

Polthurne said:

Since then they have been trying to get clarification of their options but they would only discuss it with my mum who only came out of hospital yesterday. I managed to speak to them in my mums presence so she could confirm security details.

Unless you have power of attorney, they're absolutely right in doing that.

GET POWER OF ATTORNEY. This will be the least of your problems.

bigadaj

AdrianC said:

Polthurne said:

Since then they have been trying to get clarification of their options but they would only discuss it with my mum who only came out of hospital yesterday. I managed to speak to them in my mums presence so she could confirm security details.

Unless you have power of attorney, they're absolutely right in doing that.

GET POWER OF ATTORNEY. This will be the least of your problems.

you can try for power of attorney but the individual must be competent at that point and agree to it, which may not be achievable.

lordmountararat

you can try for power of attorney but the individual must be competent at that point and agree to it, which may not be achievable. 

If the individual is not competent then the next step is the Court of Protections, which is best avoided if at all possible.