VT confusion

124

Comments

  • Nearlyold
    Nearlyold Posts: 2,284 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    edited 20 June 2019 at 8:14PM
    neilmcl wrote: »
    That's because the final payment isn't optional. With a straightforward HP the purchase isn't "optional" as such as it will become the OP's property on the final month's payment. Optional final payments (otherwise known as balloon payments) are only really relevant on PCPs.

    Actually from a strictly legal viewpoint whether or not to take ownership of the goods at the end of the agreement is an option on all HP based agreements whether straightforward HP or PCP.

    At the end of a straightforward HP agreement, once all the other contracted payments have been made, the customer will normally pay an Option to Purchase fee (which can be zero - in the OP's case it's £199 and called a Completion Fee) which enables them to take legal title to the vehicle. However, the customer may decide not to pay the Option to Purchase fee and return the vehicle to the finance company if they wish even though the vehicle has effectively been paid for by this time. Once the customer has taken legal title they are entitled to sell the vehicle. An HP based PCP is simply a variation.

    HP agreements differ from Conditional Sale agreements in this respect, in the latter case title automatically transfers at the end of the agreement
  • danny91
    danny91 Posts: 44 Forumite
    Hang on. Please somebody correct me if I’m wrong, but, you bought a car 30 months ago for just over £9000 and it got sold last month for only £1900?? What car was it? What car depreciates that much, that quickly?
  • DUTR
    DUTR Posts: 12,958 Forumite
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    danny91 wrote: »
    Hang on. Please somebody correct me if I’m wrong, but, you bought a car 30 months ago for just over £9000 and it got sold last month for only £1900?? What car was it? What car depreciates that much, that quickly?

    Alfa's , Fiat to name 2.
  • Chlonatben
    Chlonatben Posts: 24 Forumite
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    danny91 - that was what I said to the finance when they told me they only got £1900 for it!! It was a merc c220 on a 61 plate by the way. I think they are trying to take me round a corner but I'm not having it!!
  • Chlonatben
    Chlonatben Posts: 24 Forumite
    First Anniversary First Post Combo Breaker
    Thank you all for your input to my dilemma, but the question still remains what should I do if they pursue this and keep going for the outstanding balance they say I owe them?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    danny91 wrote: »
    Hang on. Please somebody correct me if I’m wrong, but, you bought a car 30 months ago for just over £9000 and it got sold last month for only £1900?? What car was it? What car depreciates that much, that quickly?
    One that's been badly treated during that time, especially if it was massively overpriced to start with.

    £1,900-worth of car with £1,750 of damage above wear and tear?
  • Chlonatben
    Chlonatben Posts: 24 Forumite
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    AdrianC - I took the car to We buy any car and they valued it at £4100!! and you know what they are like!! There was no damage to the car and I've lots of pics of it on the day I took it back to the auction house.
  • motorguy
    motorguy Posts: 22,473 Forumite
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    edited 21 June 2019 at 8:25AM
    Chlonatben wrote: »
    Thank you all for your input to my dilemma, but the question still remains what should I do if they pursue this and keep going for the outstanding balance they say I owe them?

    You need to attempt to

    (a) get talking to someone in the finance company who can explain why you have been charged. Fully explain why.

    On one hand they have told you the charge is for difference between valuation (?) and what it made at auction. In a VT scenario, this is not your concern.

    On the other hand they have billed you for "wear and tear", which if correct needs to be broken out and explained.

    Failing that, you will need to engage with a solicitor and have them do it.
  • BoGoF
    BoGoF Posts: 7,075 Forumite
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    You need to formally complain to them and ask on what basis they are pursuing you for the shortfall and where in the contract this was stipulated.
  • Chlonatben
    Chlonatben Posts: 24 Forumite
    First Anniversary First Post Combo Breaker
    I have spoken to the finance company and I think it is just a call centre. When I start asking for more information they put me on hold while they talk to 'their manager' then they just tell me I have to deal with the debt recovery agent. When I speak to the debt recovery agent and explain to them they say go back to the finance company! Just going round in circles!!
    Although it says wear and tear on the statement when I rung to query it I was told it was for the shortfall when they sold it on.
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