Voluntary termination Hire purchase

vanessa8795

Hi I am 3 years into a 4 years hp deal.
I want too voluntary terminate today but just wondering what way is best to do so. Does it still count if you call and tell them or does it have too be in writing ?
thanks  

DrEskimo

Have you checked the value of the car relative to the amount still owing.

On a HP finance with no balloon, it's very likely that the cars value is greater than the finance owing 3/4 of the way into the term. VT could just be throwing money away.

Type the reg on WBAC as a starter and ask for a settlement figure from the finance company (usually an automated service). Then try ringing a few dealers/garages nearby and ask them if they are interested in buying from you and what price they will give you (be honest about condition).

If the price is equal to or greater than the settlement, then just sell to the highest bidder and they will clear the finance on your behalf. Far easier than VT....

vanessa8795

I was actually stupid and went for a high apr deal when I first got the car due too bad credit history so the car is worth less than I’m owe unfortunately 

DrEskimo

Did you get a range of quotes? A trade in price can vary significantly from one garage to the next.

How about any excess mileage or damage to account for?

If VT is the best option, I believe notifying them in writing is the way to go. Some good advice here:

https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

In particular, be clear you are wanting to voluntarily terminate. Make sure they have no reason to suggest you want to voluntarily surrender, as they are very different and the latter can leave you still owing money.

BOWFER

vanessa8795 said:

I was actually stupid and went for a high apr deal when I first got the car due too bad credit history so the car is worth less than I’m owe unfortunately 

Be careful and accurate with what you think you owe.
If you're merely looking at the balance left on your agreement, then that's figure X.
But if you were to call them and ask for a SETTLEMENT FIGURE, they will apply a discount and that will be figure Y, which will be less than X.
If you can't be bothered though, then VT can't be recorded on your credit records and you should only really have a problem if you wanted to deal with that particular company again (they may hold a grudge)