Nissan Leaf RCI - Voluntary Termination

frost500

Hi, Advice needed, a family member no longer has any use for a Nissan Leaf, it is on PCP, and approx 3/4s of the way through, contract ends in September. The vehicle is in very good condition, and well within the contracted mileage. However I have been out of the motor trade for a while, and I require some advice. I would recommend a Voluntary Termination personally, this option is actually stated in the contract, with these exact words: -
"TERMINATION: YOUR RIGHTS

You have a right to end this Agreement. To do so, you should write

to the person you make your payments to. They will then be

entitled to the return of the goods and to half the total amount

payable under this Agreement, that is £5,792.40. If you have

already paid at least this amount plus any overdue instalments and

have taken reasonable care of the goods, you will not have to pay

any more."
To me that is black and white, straight forward, but before I advise this, I have a couple of questions. 
1. Would doing have any effect on the credit score, I presume not, as the contract will be Terminated?
2. How would the Voluntary Termination process be initiated. I personally would write only, not phone or email, is there a Template letter you know I could use?

The vehicle just sits on the drive doing nothing, with the occasional use to keep the battery in good order. It is no longer required, owner works from home, and has absolutely no requirements for the car, as has access to another family vehicle - it was only used as a commuting vehicle. I have looked at selling it, but I do not want to do this anymore, and I have no experience of EVs. Also the Nissan dealer where it come from where simply not interested. So am I convinced VT is the way to go. Contract details below: -

Nissan Leaf 64reg

PCP

Total amount of credit £9795

Duration 37 months

Total amount to pay £11600

Start Date 25/09/2018

Outstanding Amount £5650

APR 7.9%

Monthly Payment: £214.30

Annual Mileage: 10000

Final Payment: £3680

DrEskimo

Before getting into VT, first ring an EV specialist dealer and get some quotes from buying the car from you. 

Try JustEVs, Drive-Green and Go Green Autos. They may offer you a trade in price for the car the same or greater than the current settlement of £5,650. Looking on AT, most dealers have a low mileage 64plate Leaf up for £7-8k, so a trade in of £5,650 may be feasible.

They will take it off you and settle the finance and then you are done.

frost500

Thanks for that, I will look into it. I never new there were independent EV dealers about. Cheers

DrEskimo

frost500 said:

Thanks for that, I will look into it. I never new there were independent EV dealers about. Cheers

Yea they will most likely give you the best price. EVs are currently holding their values very well, so hopefully you can negotiate a good trade in price.

Obviously don't give them the settlement figure straight away. Ask them for a valuation and then if it's less, haggle to try and get above the settlement figure.

Was that settlement figure of £5,650 accurate and up to date?

frost500

Yes accurate today. They went on the portal.
To be honest though, what will be gained by trading it.
VTing looks straight forward enough.

Grumpy_chap

frost500 said:

To be honest though, what will be gained by trading it.

If you trade it, you get to keep the amount above the settlement figure.

frost500

True, I will try them and let you know.

ratrace

Plus if you VT and there is any damage ect... the falls outside of the BVRLA guildlines then you will be charged for this @ main dealer prices. I second the consensus of trying to sell it to a trader.

I know a few people who had to vt the car for a variety of reasons, and once the it was inspected by the auction house where most of the cars go, there was a shocker of a bill at the end. hope this helps

frost500

Hi Thanks, Started the VT process now, letter sent, via recorded delivery. Checked with CA, it does not effect your credit rating at all, it can't as the contract is terminated, and it is stated as an option in the contract. Phoned one of those dealers mentioned, same old crap as it has always been - they give you 2/3rds of retail max, subject to an inspection. Too much agro. Selling it privately is not an option either, due to restrictions etc. Car is in good used condition, it has been to the body shop last month for a £400 repair to get it ready, which is only 2 monthly payments.

Petriix

Seems like you're throwing money away as the car is almost certainly worth significantly more than the settlement cost. It's very easy to take it to a dealer for them to settle the finance and pay you the balance. Strange that you would start such a thread then ignore the very good advice.

ontheroad1970

frost500 said:

Hi Thanks, Started the VT process now, letter sent, via recorded delivery. Checked with CA, it does not effect your credit rating at all, it can't as the contract is terminated, and it is stated as an option in the contract. Phoned one of those dealers mentioned, same old crap as it has always been - they give you 2/3rds of retail max, subject to an inspection. Too much agro. Selling it privately is not an option either, due to restrictions etc. Car is in good used condition, it has been to the body shop last month for a £400 repair to get it ready, which is only 2 monthly payments.

It won't affect the consumer credit scores you see at clear score etc, but if you get into a habit of using VT as an option (that's not the intention of the provision - it's intended to be used when you are in such a bad situation financially that even if they took the car back because of default you still owe loads of money for collection etc.  The provision is in my opinion being abused and if it is corrected people who genuinely need this will be the ones that lose out), it might stop you getting further agreements with the same lender.  They don't just go and get your score, they will look at your file itself and see that an agreement has been terminated before it's intended date.