Car finance

3kidsandcounting

I'm hoping someone on here can help. 
My husband had a severe stroke almost two years ago which left him unable to walk , communicate difficulties due to damage to his brain. He had a car on finance, pcp. He can no longer drive.  We were told that once we got to the half way payments we could hand it back. We went over the halfway  mark and them some so as I dont drive we decided to hand it back, voluntary termination. That was back in March before the lock down. I filled in paper work ,a  relative took the car to an auction show room we were told it had to go to. We informed the dvla we weren't the owners anymore. We did everything that was asked. I stopped the direct payments out of our account and heard nothing more until last week when we got a letter saying we were in arrears. After a few false starts trying to call them I finally got through. The lady on the phone was nice enough but said car was still unsold so we still owed the payments. But how can that be possible? We aren't in possession  of it. Surely I can't be made to pay for a car we dont have? Please if anyone can give me advice I would be most grateful, this is stressing me out.

DrEskimo

Voluntary termination involves paying 50% of the total amount payable, which includes all interest charges and optional purchase fees. On a PCP, this would not be half way through the contract in terms of time. Do you know the details of the finance agreement? The VT point would have been stated on the contract and you could determine the point in time this would occur by simply adding up the deposit plus the required number of monthly payments.

You need to clarify whether you have actually VT or not. I believe you just write to the finance company and indicate you want to exercise your right to VT. It's very odd that they asked you to drop it off. Someone from the auction house should have come to collect the car from you, after inspecting it for damage/noting it's mileage.

I get the feeling that the finance company may have got you to take the car to the auction house to try and sell it on your behalf with the view of settling any remaining finance from the sale price (minus fees). This is not what you want to do....

3kidsandcounting

We only had four months to pay  before the end of contract and we didn't have money for the balloon payment.  We were going to be charged if the auction room people took but they said we could take it ourselves and save money.  We sent off the vt forms but as it was just before the lockdown I presume its sitting on a desk somewhere. The actual letter we received with the vt  forms states we would owe nothing by handing out back 

DrEskimo

3kidsandcounting said:

We only had four months to pay  before the end of contract and we didn't have money for the balloon payment.  We were going to be charged if the auction room people took but they said we could take it ourselves and save money.  We sent off the vt forms but as it was just before the lockdown I presume its sitting on a desk somewhere. The actual letter we received with the vt  forms states we would owe nothing by handing out back 

OK, it sounds as though you need to keep chasing. Get everything in writing and make a formal complaint to the finance company. You have exercised your right to VT and are not obligated for any further payments.

3kidsandcounting

I will do. Trying to call them is a nightmare, 40 minutes was the shortest wait time. Sometimes they answer and hang up, so annoying.thanjs for all your help.