Voluntary Termination

Reganroo

Hi guys, first time posting here. 
First things first - I am NOT the most well versed in legal terminology, or money related terms or words. 

I have a car on finance (PCP). My settlement figure is £8663.69. My outstanding balance is £8881.49. 

I have tried my best to keep up with payments, and I have never been late on car finance payments, but that has had a knock effect on all other direct debits etc. The car needs to go after 3years. I don't even want to look at it. It costs me too much a month. 

How can and do I go about voluntary termination? 

DrEskimo

First thing to check is how much is the car worth?

Have you looked at what a garage or dealer may pay to buy it off you? What about online brokers like WBAC?

Reganroo

Hi, 
It's worth around £7500, give or take. 

DrEskimo

Reganroo said:

Hi, 
It's worth around £7500, give or take. 

What is this based on? Have you tried lots of different garages? Prices can vary quite widely?

If that is the best price you can get, then you just need to inform the finance company with a letter that you wish to exercise your right to VT.

However, I'm guessing your near the end of the agreement given the outstanding balance is so close to the settlement figure? You don't need to VT at the end, you just inform the finance company you don't want to make the final balloon payment. You have the option of simply handing the car back the day the contract ends.

Finally, if there is any excess mileage beyond the agreed amount, or any damage beyond fair wear or tear, you will be billed for this.

molerat

How long have you had the car ?  What is the 50% figure quoted on the agreement ?  What is the total amount you have paid so far including deposit ?

macman

How long was the finance deal? 48m, 60m? To VT you must have paid 50% of the total sum repayable, which includes the balloon payment. Normally this is only reached in the last few months of the PCP. So, have you reached that stage yet?

Reganroo

Hi, sorry for late replies. 
I really am not sure how it all works :-( My ex boyfriend started the finance agreement and dealt with all the paperwork. I just want to hand the car back because it's costing me so much. 

I have no idea how to go about it.

Reganroo

There's about £200 difference in the settlement figure and outstanding balance. 

I've had the car 3 years end of September. To my understanding at that point I can change it for something else, or pay the balloon payment, or leave the contract.

Do I contact the dealership, or finance? 

Herzlos

You're at the 3 year mark this month, so how long was the finance for? If it's a 36 month PCP then you don't need to Voluntarily Terminate it - the contract is about to end anyway.

You can then normally choose whether to pay the balloon payment (GFV) or just hand it back. Presumably you want to just hand it back.

Grumpy_chap

It sounds like the OP is at the end of a 3 year PCP so no need to VT but can just hand the car back in any case at natural end of term and not pay the balloon payment.

32Battalion

OP get the car valeted and minor issues fixed, any bigger issues should at least be thought about.  It sounds as if ther is due back at the end of the month?