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Voluntary Termination

in Motoring
17 replies 571 views
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  • neilmclneilmcl Forumite
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    neilmcl said:
    right so I need to pay at least £18,500?
    Read your finance agreement, within it it will state exactly what the total amount payable is, it might even state what the VT figure is.
    no checked the agreement and it doesn’t state it.
    It has to state what the Total Amount Payable is by law. Check again.
  • neilmclneilmcl Forumite
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    AdrianC said:
    right so I need to pay at least £18,500?
    Where do you get that number from?

    Based on the figures you stated:
    • £25,000 car
    • £12,700 balloon payment
    This agreement will never reach 50% point before the end of term.
    Unless it's ~£40k car...
    £25k in term repayments, £12,700 balloon.

    But that'd be either a very long term, or hilariously bad depreciation.

    OP - give us the figures you've got, and we'll help you figure it out.
    can’t really think of anymore info that I’ve already given that could help.

    I had the £18,500 figure from adding the total amount for the car + the balloon payment and then dividing it by 50%?
    The information held in your finance agreement, eg:

    Cash Price of Vehicle
    Advance Payment/Deposit
    Amount of Credit
    Total Charge of Credit
    Total Amount Payable
    Duration of Credit
    Optional Final Payment
  • AdrianCAdrianC Forumite
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    AdrianC said:
    right so I need to pay at least £18,500?
    Where do you get that number from?

    Based on the figures you stated:
    • £25,000 car
    • £12,700 balloon payment
    This agreement will never reach 50% point before the end of term.
    Unless it's ~£40k car...
    £25k in term repayments, £12,700 balloon.

    But that'd be either a very long term, or hilariously bad depreciation.

    OP - give us the figures you've got, and we'll help you figure it out.
    can’t really think of anymore info that I’ve already given that could help.

    I had the £18,500 figure from adding the total amount for the car + the balloon payment and then dividing it by 50%?
    So we ARE talking about a £40k+ car? £25k in monthlies across the term?
  • edited 31 January 2021 at 3:57PM
    NearlyoldNearlyold Forumite
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    edited 31 January 2021 at 3:57PM
    neilmcl said:
    neilmcl said:
    right so I need to pay at least £18,500?
    Read your finance agreement, within it it will state exactly what the total amount payable is, it might even state what the VT figure is.
    no checked the agreement and it doesn’t state it.
    It has to state what the Total Amount Payable is by law. Check again.
    There is of course always the possibility that the OP's PCP is not based on a Hire Purchase or Conditional Sale agreement but rather a Fixed Term/Sum agreement which won't provide VT rights.
  • NathanMorganNathanMorgan Forumite
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    right so...

    car was - 30k
    deposit - £1k
    duration - 49 months
    total credit charge - 6.9%
    optional final value - £12,500

  • AdrianCAdrianC Forumite
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    So you borrowed £29k, and interest will work out to about £6k, so the total of your agreement is around £35k. That puts the 50% VT to about £17,500, or just over three years.
  • DrEskimoDrEskimo Forumite
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    AdrianC said:
    So you borrowed £29k, and interest will work out to about £6k, so the total of your agreement is around £35k. That puts the 50% VT to about £17,500, or just over three years.
    It includes the deposit as well, so £36k total and VT will be around £18k.

    Doesn't change the conclusion though, VT will be around month 36/37.
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