Voluntary termination final figure help !

DavidC2307

I have called my finance company to VT my vehicle. I first called them on 13th of October and they told me there was £400 outstanding to reach 50% of my agreement. I made this call because I might be working from home for a long period due to covid and was awaiting confirmation 

I then called them today to VT as I received confirmation that I will be working from home for at least year so no longer need the vehicle they then told me that I now have to pay £600 liability. My agreement started on the 14th of the month but I pay at the end of each month so they said because I have kept the vehicle for an extra two weeks their system automatically generated that I need to pay the £200 for this month which takes it to £600

I refused as I am led to believe that as long as I pay 50% of agreement there will be nothing else to pay am I correct if I pay £600 I would have gone over 50% or at the very least they should say I should pay two weeks payment not a month 

please help

DrEskimo

You need to pay to reach the 50% mark. You should see this figure in your agreement. It should be simple enough to calculate how much you've paid to date and therefore how much you still owe.

Have you checked whether VT is the best option though? Have you got quotes from various dealers and garages, or even online brokers like WBAC to see what they will offer to buy the car from you for? If this is the same or greater than your current settlement figure than this would be a far better option (and likely much more straightforward).

DavidC2307

Thank you for your response. 

Yes that’s what I told them and I calculated with them and the figure is £400 now.  They are saying according to their system I need to pay for the “month” my month starts on the 14th of each month and I have used the car since 14 October and have to pay for the “month”  which brings it to £600

facade

To VT you cannot be in arrears, (well you can, but you have to pay the arrears) so you have to pay for the current month.

But this should reduce the amount to get to 50%?

DrEskimo

The no, that is not correct. The amount of time you've had the vehicle is irrelevant. All that matters is that you have paid at least 50% of the total amount payable.

If you are set on VT, just send the letter stating you which to exercise your right to VT. Although, you may as well wait until you have reached that point through your monthly payment. You either VT today, pay £400 and the car gets taken away in the coming weeks. Or you wait 1/2months, pay £400 through your standard monthly payments and then ask request for VT. The amount doesn't change so might as well have the car for as long as possible?

Alternatively, you look to trade the car in as I alluded to in my first post, and don't have to worry about the exact amount, sending a letter to VT, waiting for them to collect it when they are ready, dealing with the inspection and invariably arguing over unfair wear and tear charges with the finance company.... 

DavidC2307

I have no problem with paying the arrears but the issue is that the money they are requesting will take me over 50%

DavidC2307

Yes I have checked  wbac and garages and they offering less than settlement figure. Selling privately is the best option looking at other cars on the market as I will get settlement figure. If I pursue this option do I need to inform finance company that I am putting vehicle on the market and will pay settlement figure once vehicle is sold ? 

Nearlyold

DavidC2307 said:

I have no problem with paying the arrears but the issue is that the money they are requesting will take me over 50%

Ignoring the VT for the moment are you currently in arrears on your payments?
If you are, is it bringing your account up to date that's taking you over the 50% threshold?
(If you VT you have to clear any arrears even if this takes you over the 50% threshold)
If you don't have arrears i.e. if making your normal Oct month end £200 payment keeps you up to date then you should only have £200 left to pay of the £400 they quoted you to bring you to the VT point.

DavidC2307

Sorry account is up to date . £400 will take it to 50%

DrEskimo

DavidC2307 said:

I have no problem with paying the arrears but the issue is that the money they are requesting will take me over 50%

I understand that, my point was why ay it in advance? Why not keep the car for a month or so (depending on what your monthly payments are) and then VT when there is nothing left to pay? 

Wait till you get a formal quotation for the VT, rather than argue with people over the phone about a hypothetical bill that you haven't yet received.

DavidC2307 said:

Yes I have checked  wbac and garages and they offering less than settlement figure. Selling privately is the best option looking at other cars on the market as I will get settlement figure. If I pursue this option do I need to inform finance company that I am putting vehicle on the market and will pay settlement figure once vehicle is sold ? 

How many quotes, and how much less? I got quotes varying as much as £5,000 from the largest to the smallest, so it's worth getting a wide range.

The finance would have to be settled before the buyer took ownership. This could be using your money before selling, or using the buyer's money before they take the car away. Obviously doing it with the buyer will add a layer of complexity to the transaction.