Welcome Car Finance help needed over a VT

Ms-Pacman

I have a joint car finance (with partner) with Welcome Finance taken out in Oct 06.
It went through UCAN CAR , car from Car Craft, financed by Welcome Car Finance.

The car as lovely as it is, is diesel and we wish to change to petrol. Also we are paying £277 a month which is starting to cripple a bit with costs going up in general. We are hoping to save a bit aside then get a decent car outright.

I phoned up Welcome initially to lower payments but what I have read on here seems they just charge a further massive amount with a new contract so that does not really help us much.

To date payments made are 21 payments = £5819.52. Next payment due on 1st of month (July)
no missed amounts so no charges. We took out Shortfall Insurnance, but did not take PPI.
Total cost of car finance is £13401.76 aminly made up of interest charges. Value of car on contract at time was £7k APR 40% :mad:

It says on my contract (strangely set up - not like any other contract I have seen)
Termination: Your Rights
You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement being £6385.44. If you have already paid at least this amount plus any overdue installments and have taken reasonable care of the goods you will not have to pay any more.

Does this mean I should wait a few more months to pay up to this amount or cxan they charge me further? The extra £300 a month will allow us a much easier month instead of having to struggle for every spare penny.

standupguy

It looks like you are not far away from paying half the Hire Purchase price?

Did you pay a deposit - if so you need to add this to the payments you have made - the deposit, if any, will be shown on the HP agreement.

If you did not pay a deposit then it looks like you need to pay £565.92 to pay half the hire purchase price?

That is just over two payments away?

So, after 1st August payment is made you will be about there and can voluntary terminate the agreement and return the vehicle.

Providing there is no damage other than fair wear and tear then you should have nothing more to pay.

However, do bear in mind that future HP lenders will pick up on the vt and you may find yourself having to pay a bigger deposit in future as lenders do not like losing money when cars are returned.

Of course, there will be a delay before this vt is registered with the credit agencies so if you get your next car fairly prompt you should be ok without the need for the extra deposit?