Nissan Leaf RCI - Voluntary Termination

NottinghamKnight

ontheroad1970 said:

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.  

That's a bit academic as it is a legal right and people can utilise it within the constraints applied in terms of payments and duration. It may well affect future agreements with a particular lender, though there have been reports on this board about people getting new deals with the same lender after VTing, but it has no real impact otherwise. Finance houses will factor this into their offerings, like section 75 for credit cards, though it may well not be the best option if there is equity in the car in any case. In this case it may well be that the finance house will make a profit out of the VT for example.