Car Finance Voluntary Termination - Records

RichardHeather

Hello, first post, go easy on me.......
I am considering VT on an existing agreement for a vehicle that already sits at a negative equity state with a year to run (based on current market value) and I am having to seriously look at options.  What is concerning me most of all on the VT option is the longevity of the'mark' on my Credit History.  I have looked and researched long and hard, but cannot find any indication of how long the VT will reside on the Credit History.  I fear it maybe forever, but would like to ideally know 100%........any finance experts, feel free to set me straight (please)?? 

Just to be clear, I am aware of the principal of VT and that it is my legal right and that it should not be regarded as a negative on my Credit History - but when you are in a cycle o financing a vehicle, I am keen to understand the potential long term effects !

molerat

The VT mark will stay for 6 years.  One or two will likely have little to no effect but too many may scare off car finance companies.  A few now though are doing a hybrid fixed term loan PCP with no option to VT and I suspect given the current climate more will follow.

DrEskimo

RichardHeather said:

Hello, first post, go easy on me.......
I am considering VT on an existing agreement for a vehicle that already sits at a negative equity state with a year to run (based on current market value) and I am having to seriously look at options.  What is concerning me most of all on the VT option is the longevity of the'mark' on my Credit History.  I have looked and researched long and hard, but cannot find any indication of how long the VT will reside on the Credit History.  I fear it maybe forever, but would like to ideally know 100%........any finance experts, feel free to set me straight (please)?? 

Just to be clear, I am aware of the principal of VT and that it is my legal right and that it should not be regarded as a negative on my Credit History - but when you are in a cycle o financing a vehicle, I am keen to understand the potential long term effects !

Is the negative equity a reflection on the low trade in given the current climate?

Unless there is a particular reason you want to get rid of the car right now, I would wait until market conditions improve and then look at the difference between the valuation and finance settlement. It would be far easier and potentially economically more viable to just trade the car in at a later date.

Remember to get a range of quotes. Valuation of your car will vary dramatically from one garage to the next. Try main dealers and independent garages.

RichardHeather

Molerat - that's much appreciated in respect of the 'flag' and its stain......not something I would consider normally, but as I believe it will only effect any future Car Finance, I will now be better placed to consider options

k3lvc

If it helps you I VT'd an Audi with VWFS in 2016 and had finance accepted again with VWFS in 2019 with no issues at all