Caravan finance
Our son took out finance on buying a caravan for 18 grand just over a year ago. He has become seriously ill stage 4 cancer and his wife phoned the finance company and explained that they were selling the van back to the site and wanted to end the 250 a month they are paying but they are saying to voluntarily terminate the agreement they want 9 grand! Can they get away with this ? No compassion at all they have enough to worry about and don’t need this can anyone advise please.
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Is this a static ?0
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To voluntarily terminate you need to have paid or pay 50% of the amount financed. If it is being sold back to the site how much are they paying?0
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Our son took out finance on buying a caravan for 18 grand just over a year ago. He has become seriously ill stage 4 cancer and his wife phoned the finance company and explained that they were selling the van back to the site and wanted to end the 250 a month they are paying but they are saying to voluntarily terminate the agreement they want 9 grand! Can they get away with this ? No compassion at all they have enough to worry about and don’t need this can anyone advise please.
What does the agreement/contract say ?
I suspect they can get away with it as its in the contract.
Look Im sorry to hear your son has cancer but the staff aren't employed to be compassionate, if they were the firm wouldn't make money. Maybe they could try a complaint.0 -
Sorry to hear - such a horrible situation.
With regards to the finance company - what is it that you would like them to do?
Presumably after just a year of the contract, only a grand or so has come off the balance so the £9k they quote is probably the amount required to get to >50% of the committed payments allowing a VT.
That seems the easiest way out - I hope the site have offered more than £9k?
Perhaps in the circumstances they could stop accruing interest, but surely the OP is not expecting them to just write off £17k of their shareholders money?0 -
Yes they can get away with it because he signed an agreement and to VT you have to have paid 50% of the finance.
If the site are offering what finance is outstanding or higher they can pay the finance company directly and that would end it.0 -
If you sell the caravan to the site wont the full £18k be payable?
If you VT it then you pay 50% and the finance company take ownership of the caravan. You cant sell it and VT it unless you pay the full cost of the loan + interest.Censorship Reigns Supreme in Troll City...0 -
What is the current settlement figure, and how much are they being offered to trade in/ how much can they get for private sale?
If VT is going to cost £9k, then you just need to calculate whether the difference between the sale/trade in price and the current settlement figure is less than or more than £9k.
E.g. if the settlement figure is £16k, and they are offered £12k private sale, then that leaves just £4k to settle the finance in full, which is £5k cheaper than doing the VT route. However if the settlement is £17k, and they are only offered £5k, then that leaves £12k to settle the finance in full, so VT at £9k would be cheaper.
Of course it's highly unlikely that the caravan is going to worth <50% of what they paid for it after just 1 year, and we know the settlement has to <£18k unless the APR was ludicrous, so it's highly likely that selling and then covering any shortfall to clear the finance balance is going to be much cheaper than paying to VT.0
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