Voluntary Termination - can’t find answer

qucharski

Hi everyone, 

I searched the forum for a whole day just to make sure I don’t miss a similar post but none answered my question in full. So I bought a car on hire purchase and want to do voluntary termination. The car I want to return was bought used and it was cheaper then most due to some small damages. Alloy wheels were a bit scuffed and inside the rear doors the plastic was scratched which by the looks of it was due to the owner having a dog. I didn’t mind as the condition, age and mileage otherwise were very good. But now I am worried that when I return it the finance company will try to charge me for it. Of course I didn’t expect to do VT so I didn’t take pictures but they didn’t either although I had a friend present (mechanic) with me who can confirm the condition when bought. I am always anxious about things like that and can’t sleep when I think about it. I know I’m pathetic but I just about manage and can’t afford additional costs for a car that I otherwise took very good care of and I’m sad to let it go 😞 I would appreciate your thoughts and opinions. 

Kind regards 

Adrian 

tacpot12

Hi Adrian, I'm not an expert on car finance. I expect others will be along to more accurately answer your question, but I think the finance company will take the condition of the car into account when/if you return it. As a finance company, all they really care about is what they can sell the car for at auction. They won't have a forecourt where they can sell the car at a retail price, so it will go to auction, and I expect they will expect you to make up the different between what profit they expected to make if the deal ran to term vs. the profit they will make if the car goes to auction and sells at a fair value for its condition; which they will have the expertise to determine before it goes to the auction. Your contract with them should set out how a voluntary termination will work, or you can call and ask them. I don't know whether this will be the case, but it might be that sending the car back might cost more than keeping it.

Why can't you keep it? 

DrEskimo

What is the current settlement figure on your finance?

Have you first checked whether you can trade the car in to WBAC or a garage for equal or more than the settlement (taking into account it's mileage and condition)?

Stick the reg into WBAC to get a rough idea first.

Grumpy_chap

Has the OP definitely reached the point at which VT is possible?  If the Car finance is PCP, that will be very late in the agreed term.  

Regarding the condition of the car, has the OP got any photos from the advert?  OR, is it possible to still find the advert online from when the car was purchased?  It won't be an obvious ad to find, but may be possible to track with some detective work.

JamoLew

qucharski said:

Hi everyone, 

I searched the forum for a whole day just to make sure I don’t miss a similar post but none answered my question in full. So I bought a car on hire purchase and want to do voluntary termination. The car I want to return was bought used and it was cheaper then most due to some small damages. Alloy wheels were a bit scuffed and inside the rear doors the plastic was scratched which by the looks of it was due to the owner having a dog. I didn’t mind as the condition, age and mileage otherwise were very good. But now I am worried that when I return it the finance company will try to charge me for it. Of course I didn’t expect to do VT so I didn’t take pictures but they didn’t either although I had a friend present (mechanic) with me who can confirm the condition when bought. I am always anxious about things like that and can’t sleep when I think about it. I know I’m pathetic but I just about manage and can’t afford additional costs for a car that I otherwise took very good care of and I’m sad to let it go 😞 I would appreciate your thoughts and opinions. 

Kind regards 

Adrian 

The OP already benefited from a lower purchase price due to existing damage

Net loss = £0

qucharski

It’s hire purchase and I just reached half the amount this month. I cant keep it as my father is out of work due to health issues and waiting for hip replacement since January last year so I need to pay all the bills and giving the car back will mean I don’t have to use credit cards each month and mount more debt. 

Mistral001

The finance company owns the car so why not ask them what your options are?  

qucharski

Mistral001 said:

The finance company owns the car so why not ask them what your options are?  

I know what my options are my question was not about options it’s about the wear and tear that was already present when I purchased the car. 

JamoLew

qucharski said:

Mistral001 said:

The finance company owns the car so why not ask them what your options are?  

I know what my options are my question was not about options it’s about the wear and tear that was already present when I purchased the car. 

Irrelevant as you already said you paid less initially due to existing damage

qucharski

JamoLew said:

qucharski said:

Mistral001 said:

The finance company owns the car so why not ask them what your options are?  

I know what my options are my question was not about options it’s about the wear and tear that was already present when I purchased the car. 

Irrelevant as you already said you paid less initially due to existing damage

Ok this still doesn’t answer my question. Can anyone else help please? I want to know if the finance company can demand to pay for this damage if it was present at the time of purchase. 

neilmcl

qucharski said:

JamoLew said:

qucharski said:

Mistral001 said:

The finance company owns the car so why not ask them what your options are?  

I know what my options are my question was not about options it’s about the wear and tear that was already present when I purchased the car. 

Irrelevant as you already said you paid less initially due to existing damage

Ok this still doesn’t answer my question. Can anyone else help please? I want to know if the finance company can demand to pay for this damage if it was present at the time of purchase. 

If you can't prove it was there then they may.