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  • FIRST POST
    • Chlonatben
    • By Chlonatben 19th Jun 19, 3:52 PM
    • 21Posts
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    Chlonatben
    VT confusion
    • #1
    • 19th Jun 19, 3:52 PM
    VT confusion 19th Jun 19 at 3:52 PM
    Hi everyone

    I have read a lot of useful info on the site. I could just do with some information regarding a Voluntary Termination that I entered into with Barclays Partner Finance. I had a car financed by them and my circumstances changed and I could no longer afford the car. I never missed a payment and was over the 50% time period. I contacted them to arrange the VT and everything seems to have gone ok. I had to pay a small amount of money but other than that nothing. I handed the car back at the Barclays designated auction house on 01/05/19. I had heard nothing from them until 24/05/19 when I telephoned them for info about when my credit file would be updated. During the telephone call I found that the car had already been sold on. I was told by the representative that a letter would be sent to me that covered a break down of what has happened to the car and any charges they are looking for me to pay. I took lots of photos of the car as advised on this site, so I'm not expecting to have to pay anything and as as far as I am concerned the car was in good working order and had a full MOT. To me, the fact that they have sold the car on already says it was in good order.

    They have come back to me saying that there is an outstanding balance of £1750 for wear and tear. I asked them for a breakdown of the charge but they have told me that it is the difference from what they thought the car was worth to what they actually resold for.

    Where do I stand with this?

    Looking forward to your help/advice

    Many thanks
Page 1
    • molerat
    • By molerat 19th Jun 19, 3:58 PM
    • 21,048 Posts
    • 15,290 Thanks
    molerat
    • #2
    • 19th Jun 19, 3:58 PM
    • #2
    • 19th Jun 19, 3:58 PM
    There should be no value difference charge if correctly VTd. Are you sure you correctly VTd and not ETd the car ? Did you sign any paperwork before handing it over ? The VT calculation is not at 50% time period it is 50% payment of the total value of the finance, if you had not reached that amount then maybe that is what the charge is. You need to clarify with them.
    Last edited by molerat; 19-06-2019 at 4:52 PM.
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    • DoaM
    • By DoaM 19th Jun 19, 4:05 PM
    • 7,581 Posts
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    DoaM
    • #3
    • 19th Jun 19, 4:05 PM
    • #3
    • 19th Jun 19, 4:05 PM
    Post #2 is correct ... VT is allowed once 50% of the total contractual payments have been met. This includes any final (balloon) payment.

    Quick and dirty example:

    Car value £18k
    Balloon payment £6k
    Amount financed £12k
    Finance period 4 years (48 months)
    Deposit paid £0
    Interest 0% (I did say this was quick and dirty )

    Monthly payments = £250

    VT amount = £9k
    Monthly payments to reach £9k = 36 months = 3 years

    So you'd need to have paid for 3 years and not 2 years to reach the VT point.
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    • Chlonatben
    • By Chlonatben 19th Jun 19, 4:09 PM
    • 21 Posts
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    Chlonatben
    • #4
    • 19th Jun 19, 4:09 PM
    • #4
    • 19th Jun 19, 4:09 PM
    I used a template from this site for VTing and when I telephoned them I specifically said I was VTing it. I even quoted the Law in my letter. I have had a copy of my payment statement and I am actually in credit over the 50% repayment requirement!
    • foxy-stoat
    • By foxy-stoat 19th Jun 19, 4:34 PM
    • 4,766 Posts
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    foxy-stoat
    • #5
    • 19th Jun 19, 4:34 PM
    • #5
    • 19th Jun 19, 4:34 PM
    How long was your PCP/HP for?

    2 years out of a 3 year agreement doesnt seem long enough as these things are geared towards the end of the contracted period.
    • motorguy
    • By motorguy 19th Jun 19, 4:48 PM
    • 19,108 Posts
    • 11,871 Thanks
    motorguy
    • #6
    • 19th Jun 19, 4:48 PM
    • #6
    • 19th Jun 19, 4:48 PM
    I used a template from this site for VTing and when I telephoned them I specifically said I was VTing it. I even quoted the Law in my letter. I have had a copy of my payment statement and I am actually in credit over the 50% repayment requirement!
    Originally posted by Chlonatben
    You can VT your car at any time. They wont ever refuse a VT.

    However the finance company can attempt to recover up to 50% of the total cost of the transaction from you (which would include your deposit and payments so far)..

    How are you calculating the 50% payment requirement and the total transaction amount?
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Chlonatben
    • By Chlonatben 19th Jun 19, 4:57 PM
    • 21 Posts
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    Chlonatben
    • #7
    • 19th Jun 19, 4:57 PM
    • #7
    • 19th Jun 19, 4:57 PM
    Firstly thank you so much for your advice.

    Foxy-Stoat - my agreement was for 5 years and I am 30 months into it.

    Motor Guy - I have calculated 50% of the total transaction. Total was for £14000 including interest, deposit, admin charge etc and I have paid back £7350.

    Before I entered into the VT I spoke to the finance and they said if I paid a final small amount I could enter into the VT.
    • motorguy
    • By motorguy 19th Jun 19, 5:04 PM
    • 19,108 Posts
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    motorguy
    • #8
    • 19th Jun 19, 5:04 PM
    • #8
    • 19th Jun 19, 5:04 PM
    Firstly thank you so much for your advice.

    Foxy-Stoat - my agreement was for 5 years and I am 30 months into it.

    Motor Guy - I have calculated 50% of the total transaction. Total was for £14000 including interest, deposit, admin charge etc and I have paid back £7350.

    Before I entered into the VT I spoke to the finance and they said if I paid a final small amount I could enter into the VT.
    Originally posted by Chlonatben
    So whats the breakdown of the £1,750 charge then?

    What are they specifically saying its for?
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Chlonatben
    • By Chlonatben 19th Jun 19, 7:07 PM
    • 21 Posts
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    Chlonatben
    • #9
    • 19th Jun 19, 7:07 PM
    • #9
    • 19th Jun 19, 7:07 PM
    They have said it is the deficit from what they got reselling the car. They said they thought car was worth £3650 but only got £1900 for it so I have to pay the difference - £1750.
    • DrEskimo
    • By DrEskimo 19th Jun 19, 7:09 PM
    • 669 Posts
    • 471 Thanks
    DrEskimo
    There's no need to calculate it, it's written in your finance documents. What number is written on there regarding 50% payable and VT?

    If you paid more than 50% then why did they ask for a small amount when you issued the termination request? Why didn't you query that at the time?
    • motorguy
    • By motorguy 19th Jun 19, 7:11 PM
    • 19,108 Posts
    • 11,871 Thanks
    motorguy
    They have said it is the deficit from what they got reselling the car. They said they thought car was worth £3650 but only got £1900 for it so I have to pay the difference - £1750.
    Originally posted by Chlonatben
    Did you sign any paperwork for the VT?
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Chlonatben
    • By Chlonatben 19th Jun 19, 7:20 PM
    • 21 Posts
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    Chlonatben
    Dr Eskimo - I didn’t know until I got my statement after they told me I owed £1750.

    Motor Guy - apart from the actual VT letter I sent to them and the paperwork when I handed the car over, I haven’t signed any other paperwork
    • motorguy
    • By motorguy 19th Jun 19, 7:21 PM
    • 19,108 Posts
    • 11,871 Thanks
    motorguy
    Dr Eskimo - I didnít know until I got my statement after they told me I owed £1750.

    Motor Guy - apart from the actual VT letter I sent to them and the paperwork when I handed the car over, I havenít signed any other paperwork
    Originally posted by Chlonatben
    You'll need to ring them then and ask why if you've done a VT and you've paid more than 50% they are billing you for any shortfall in value.
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Chlonatben
    • By Chlonatben 19th Jun 19, 7:34 PM
    • 21 Posts
    • 0 Thanks
    Chlonatben
    I rang them today and that’s all they would tell me, that it was a shortfall and I needed to pay. It has been passed to a debt collection agency who have also contacted me re the outstanding balance! They’re just passing me from one to the other and I’m getting nowhere so I’ve told both of them I’m prepared to go to court over it
    • AdrianC
    • By AdrianC 19th Jun 19, 7:58 PM
    • 23,754 Posts
    • 22,948 Thanks
    AdrianC
    I have calculated 50% of the total transaction. Total was for £14000 including interest, deposit, admin charge etc and I have paid back £7350.
    Originally posted by Chlonatben
    The deposit/"initial payment" is not part of the finance package.
    The balloon/"option to purchase" is. You didn't mention that. Does the £14k include the balloon?
    • Chlonatben
    • By Chlonatben 19th Jun 19, 8:36 PM
    • 21 Posts
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    Chlonatben
    There’s no balloon payment or option to buy.
    • Nearlyold
    • By Nearlyold 19th Jun 19, 8:37 PM
    • 1,360 Posts
    • 1,211 Thanks
    Nearlyold
    The deposit/"initial payment" is not part of the finance package.
    The balloon/"option to purchase" is. You didn't mention that. Does the £14k include the balloon?
    Originally posted by AdrianC
    Sorry but that's not correct in respect of the deposit - Any Deposit is counted as part of the "Total Amount Payable" and also counts towards achieving the 50% threshold for a VT

    Customers who elect voluntarily to terminate a contract, must comply with the following:

    Pay or have paid at least 50% of the total amount payable under the agreement to the finance company. The total amount payable comprises everything the customer would have paid if the agreement had run its full course including the deposit, amount borrowed, interest and all fees and charges.
    Bring up to date any arrears that are owed to the finance company, even if this results in more than the 50% being paid.
    Return the goods/vehicle in a reasonable condition for their age and mileage.
    Write to the finance company to explain the option they wish to take - this is known as the “surrender” or “voluntary surrender” letter.
    Provided the customer has paid at least half the total amount payable and is up to date with his payments and taken reasonable care of the goods, then the goods can be returned to the finance company with no further liability.
    Last edited by Nearlyold; 19-06-2019 at 9:35 PM.
    • Chlonatben
    • By Chlonatben 20th Jun 19, 6:33 AM
    • 21 Posts
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    Chlonatben
    Nearlyold - as far as I am concerned I have complied with everything you have said. I never missed a payment, I wrote to them to tell them I wanted to VT and the car was in good condition when I took it to their point of return and I have numerous photos to reflect this. I even took the car to We buy any car for a valuation and they value it at £4100!!

    I suppose my question is, what do I do if they don't close this matter and keep coming for the outstanding money they say I owe?
    • foxy-stoat
    • By foxy-stoat 20th Jun 19, 10:22 AM
    • 4,766 Posts
    • 2,828 Thanks
    foxy-stoat
    Not sure how you can be in month 30 of 60 and be in a position where you have paid 50% of the car, where there was no option to purchase. Someone has advised you incorrectly or got their figures mixed up.

    What are all the figures;
    Purchase price
    Deposit
    Interest rate
    Monthly payment
    • LandyAndy
    • By LandyAndy 20th Jun 19, 10:28 AM
    • 24,807 Posts
    • 52,202 Thanks
    LandyAndy
    Not sure how you can be in month 30 of 60 and be in a position where you have paid 50% of the car, where there was no option to purchase. Someone has advised you incorrectly or got their figures mixed up.

    What are all the figures;
    Purchase price
    Deposit
    Interest rate
    Monthly payment
    Originally posted by foxy-stoat
    If it is a straight HP (not PCP) and the OP put in a significant initial deposit?

    A few years ago I bought a vehicle on HP over three years. 50% deposit and the rest over 36 months, 0% interest. I suspect I could have VTd pretty much immediately.
    Last edited by LandyAndy; 20-06-2019 at 10:30 AM.
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