VT confusion
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Chlonatben
Posts: 24 Forumite
in Motoring
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
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
0
Comments
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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.0
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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.0 -
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!0
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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.0 -
Chlonatben wrote: »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!
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?0 -
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.0 -
Chlonatben wrote: »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.
So whats the breakdown of the £1,750 charge then?
What are they specifically saying its for?0 -
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 - £1750.0
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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?0 -
Chlonatben wrote: »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.
Did you sign any paperwork for the VT?0
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