Problems with terminating car finance !

NJ74

I understand I can terminate my vehicle finance if I’ve payed half or more of the agreed amount . My Question is ,would I be liable for any repair cost to the vehicle as my car is currently not drivable, the abs pump has packed up and all 4 wheels are locked up which has now damaged all the brakes ,disks and callipers . My finance company also states I’m liable for any marks , scratches and dents . What are my options please . TIA 

CliveOfIndia

What type of finance is it?  If it's a standard PCP  then yes, you can VT the agreement once you've paid 50% or more of the Total Amount Payable as defined in your contract.  But you will need to rectify the damage before you can return the car.  Minor damage - most finance companies go by the BVRLA guidelines, though it's not a legally-enforceable rule.

https://www.bvrla.co.uk/guidance/fair-wear-tear.html

Grumpy_chap

NJ74 said:

I understand I can terminate my vehicle finance if I’ve payed half or more of the agreed amount . My Question is ,would I be liable for any repair cost to the vehicle as my car is currently not drivable, the abs pump has packed up and all 4 wheels are locked up which has now damaged all the brakes ,disks and callipers . My finance company also states I’m liable for any marks , scratches and dents . What are my options please . TIA 

Half the amount and half the term are not always the same.
From what you have said, the car will need to be repaired first, though there have been threads where people would challenge that.

What is the reason for considering VT?

How much will the repair cost?

If you don't VT, what is the settlement value?

What is the value of the car?

Flight3287462

I imagine he wants to VT it because he's broken it!

NJ74

I owe a little over 4k on the car ,on HP . it’s worth 8/9k . I’ve not broken it lol ,I’m being told by lots of people  it’s a common fault with this make and model of vehicle but there has been no recall on them . Price to repair £1500/2000 pending parts needed 

Ganga

What make ,model,year etc.

Grumpy_chap

NJ74 said:

I owe a little over 4k on the car ,on HP . it’s worth 8/9k . I’ve not broken it lol ,I’m being told by lots of people  it’s a common fault with this make and model of vehicle but there has been no recall on them . Price to repair £1500/2000 pending parts needed 

The best route seems to be to pay £2k to fix it, sell it for £8k, clear the finance £4k and walk away with the £2k left.

DullGreyGuy

NJ74 said:

I owe a little over 4k on the car ,on HP . it’s worth 8/9k . I’ve not broken it lol ,I’m being told by lots of people  it’s a common fault with this make and model of vehicle but there has been no recall on them . Price to repair £1500/2000 pending parts needed 

The calcs are not based on what you owe -v- what you think its worth but what the total payable was under the contract -v- what you've paid.

Grey_Critic

Ganga said:

What make ,model,year etc.

Is there no warranty/goodwill  applicable to the failure?

Goudy

DullGreyGuy said:

NJ74 said:

I owe a little over 4k on the car ,on HP . it’s worth 8/9k . I’ve not broken it lol ,I’m being told by lots of people  it’s a common fault with this make and model of vehicle but there has been no recall on them . Price to repair £1500/2000 pending parts needed 

The calcs are not based on what you owe -v- what you think its worth but what the total payable was under the contract -v- what you've paid.

Yes many get confused in regards to this, HP and particularly on PCP deals.
They mistake the fact they have paid over half the monthly payments as having paid more than 50% and forget about the GFV, interest and any fees.

To be in a position to VT a car you need to have paid over 50% of the total amount payable (including interest and fees) and that total amount also includes the GFV, which could be more than 50% anyway.

When VTing there should not be any charges for wear and tear or excess mileage but the finance company can take legal action for it as you would have broken the terms of the contract.

If it's thousands of pounds worth of damage/repairs it would probably be in their interest to recover that amount.

Would they win?
That is hard to tell, you have signed a contract with a clause you will take responable care of the car but there is no legal guidance in law to what that is, though there is an industry standard for it.

BVRLA's fair wear and tear guidance is usually adopted as the standard and might even be written into your contract.
I would imagine it would be hard to argue against that if the ABS has failed and the brakes are stuck on.