VT Query re Dealer deposit allowance.

WeeBee

Hi.  I wonder could anyone help with this query.  I purchase a car almost 2 years ago on PCP finance. Its a 4 year deal ending late 2022.  However, I was diagnosed with heart failure last year and its likely I will now need to retire early next year. I want to VT at the 50% mark, as I wouldn't be able to afford this car after retirement.
 I have not been provided with a VT 50% figure as far as I can see on my documents, so trying to calculate myself.  I reckon I will have paid the 50% Total Amount Payable by March 22.  My deposit was £7469, which was made up of £2500 cash and the rest made up of a Dealer Deposit Allowance.  My question is, does this deposit allowance from the dealer count towards the amounts already paid?  My TAP due is £40,067 including deposit, the balance to finance, interest due and doc charges.
50% of this would then be £20,034.  By March 2021 I will have made monthly payments to the tune of £12570 , plus the deposit of £7469, which should be 20,039 paid (ie 50%). But I am concerned this Dealer deposit allowance will not count as I actually only paid £2500 myself with the rest of the £7469 deposit coming from the dealer allowance  It does just show on my docs as ADVANCE PAYMENT, lumped in with my cash deposit and totalling £7469.

DrEskimo

No it should be included. Your calculations seem correct to me. You can always seek clarification from the finance company.

VT may not be your best option though. First I would get a rough valuation for the car and then compare that against the settlement figure. You can do this anytime, but obviously the lower the finance owed, the more likely you will get a valuation that matches or is greater than the settlement. Of course, values right now are not likely to be very representative either....However, come March 2021, it may be that the car is worth same/more than the settlement, therefore it would be much easier and more economically viable to just trade the car in and let the garage/dealer settle the remaining finance.

WeeBee

DrEskimo said:

No it should be included. Your calculations seem correct to me. You can always seek clarification from the finance company.

VT may not be your best option though. First I would get a rough valuation for the car and then compare that against the settlement figure. You can do this anytime, but obviously the lower the finance owed, the more likely you will get a valuation that matches or is greater than the settlement. Of course, values right now are not likely to be very representative either....However, come March 2021, it may be that the car is worth same/more than the settlement, therefore it would be much easier and more economically viable to just trade the car in and let the garage/dealer settle the remaining finance.

Thanks
I was fairly sure the dealer deposit allowance should go towards my total payments, but you never know with dealers.  I couldnt think logically how it wouldn't be part of the calculation, but thought I would check.  Its strange though that the 50% VT figure is not showing on any of my paperwork or on the finance docs.  I thought that was a legal requirement.  I will have to ring them for the figure.  I had looked at selling the car, and it will likely be an option towards the end of this year according to my calculations of what I will owe against what the likely values are for this vehicle at that time.

neilmcl

WeeBee said:

DrEskimo said:

No it should be included. Your calculations seem correct to me. You can always seek clarification from the finance company.

VT may not be your best option though. First I would get a rough valuation for the car and then compare that against the settlement figure. You can do this anytime, but obviously the lower the finance owed, the more likely you will get a valuation that matches or is greater than the settlement. Of course, values right now are not likely to be very representative either....However, come March 2021, it may be that the car is worth same/more than the settlement, therefore it would be much easier and more economically viable to just trade the car in and let the garage/dealer settle the remaining finance.

Thanks
I was fairly sure the dealer deposit allowance should go towards my total payments, but you never know with dealers.  I couldnt think logically how it wouldn't be part of the calculation, but thought I would check.  Its strange though that the 50% VT figure is not showing on any of my paperwork or on the finance docs.  I thought that was a legal requirement.  I will have to ring them for the figure.  I had looked at selling the car, and it will likely be an option towards the end of this year according to my calculations of what I will owe against what the likely values are for this vehicle at that time.

The 50% figure itself doesn't have to be but the Total Amount Payable must be shown, and it is of course 50% of this that you must pay before you can VT.

WeeBee

yes the TAP is showing.  I will ring them for the 50% figure.