Voluntary termination

kathryn1975

Evening experts.
What is a valid reason for wanting to vt your car. I'm nearly half way through my contract and have lost all confidence in it. Last month the gear box went and I had to take out a £3600 loan to pay for the repairs. Annoyingly it's only 7 years old and has done only 46000 miles. The car runs perfectly  but i have lost all confidence in it after it died on the motorway. Would this be a valid reason or would I need to tell the finance company my circumstances have changed. Chances are i will only refinance another car with them anyway.  

molerat

You don't need a "valid reason" for VT.  It is your legal right to VT once you have paid, or will pay up to, 50% of the total amount payable on the finance agreement.  Have you met that requirement ? it is not "half way through the contract" it is half the total cost of the agreement.

What car is it ?  Was the motorway breakdown due to the gearbox or is this something else ?  Why do you think it will break down again ?  Throwing away the £3.6K you have already spent is not very money saving.

DrEskimo

As above, you don't need a reason. You can do it whenever you want.

If you just want to swap to another car then the question is what is the most financially beneficial way to do it.
How much would it be to VT if you have not reached the 50% total amount payable?
How much is the car worth trade in (get multiple quotes from different sources), relative to the settlement on the finance?
Could you get a bit more privately and do you have the means to clear the finance and then sell it privately?

Those are some options available to you.

k3lvc

Why are you looking to VT it if you've just spent £3.6k - that's just throwing away the money you've spent ?

If you're confident in the new gearbox then surely the most MSE option is to keep it

Grumpy_chap

What type of car is £3.6k for a gearbox?
When was the car purchased?
What is the total payment plan?  Deposit, monthly payment, duration, balloon payment.

kathryn1975

In answer to your questions. It is a Nissan juke cvt and yes the gear box failed on the motorway. I am two months off being half way through the payment,  not the contract. The car is worth around £6000 and that is the half way amount. I have no way of paying it off in full in order for me to sell. I know it's not "very money saving" but my original question was not about saving money but advice of voluntary termination.  So thank you all you have answered my question.

DrEskimo

kathryn1975 said:

In answer to your questions. It is a Nissan juke cvt and yes the gear box failed on the motorway. I am two months off being half way through the payment,  not the contract. The car is worth around £6000 and that is the half way amount. I have no way of paying it off in full in order for me to sell. I know it's not "very money saving" but my original question was not about saving money but advice of voluntary termination.  So thank you all you have answered my question.

You don't have to clear the finance to sell it to a garage.

If the car is worth ~£6,000 trade value and you have £6,000 left owing then there is no need to VT. Simply sell it to a dealer, garage or an online outfit like WeBuyAnyCar (whoever will give you the best price) and they will settle the finance owing on your behalf. If there is any surplus, you will get that.

It will be far easier than going through VT with the finance company, where you will be liable for excess mileage and any wear and tear above fair use.

daveyjp

Nissan CVT, enough said.

facade

It died on the motorway because the drive belt broke.

With a new gearbox, this won't happen again for at least another 40,000 miles or so, a lot more if the gearbox oil and filter are changed every 25,000 miles (Nissan recommend 30,000, a lot of the ones that explode have never had oil & filter).

I'd keep it for at least another 35,000miles, to try and get that gearbox cost down to 10p a mile.