Voluntary termination

Options
taffyboyo74
taffyboyo74 Posts: 6 Forumite
in Motoring
hello

i need some advice please i sent my finance company a letter to voluntary terminate my agreement with them as ive paid 80% of the agreement.
i just revived a letter from them telling me the following which i don't understand

1.The termination of the agreement does not affect any liability you had under the agreement prior to the voluntary termination request.

2.Also that once we sell your vehicle you shall still remain liable to pay us half of the total amount payable on your hire purchase agreement.Is this right can they ask for me to do this

thanks

Comments

  • Oakdene
    Oakdene Posts: 2,560 Forumite
    Combo Breaker First Post
    Options
    Point 1 will be in relation to fair wear & tear damage on the car, so basically saying that you still have to hand the car back to them in an acceptable state, which you should have documented when you got the car.

    Point 2 sounds like a generic line in the letter which you can ignore if you have paid 80%...
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • motorguy
    motorguy Posts: 22,477 Forumite
    Name Dropper First Anniversary First Post
    Options
    taffyboyo74 wrote: »
    hello

    i need some advice please i sent my finance company a letter to voluntary terminate my agreement with them as ive paid 80% of the agreement.
    i just revived a letter from them telling me the following which i don't understand

    1.The termination of the agreement does not affect any liability you had under the agreement prior to the voluntary termination request.

    2.Also that once we sell your vehicle you shall still remain liable to pay us half of the total amount payable on your hire purchase agreement.Is this right can they ask for me to do this

    thanks

    Dont sign anything. You're not obliged to and it could lead to legally binding terms.

    For example, if you're on a PCP deal, signing anything that has clause 1 on it could mean you are liable for excess miles under the terms of the agreement.

    With regards to 2, make sure you have paid more than 50% of the total agreement cost. This will be in your contract.
  • daveyjp
    daveyjp Posts: 12,527 Forumite
    First Post Name Dropper First Anniversary
    Options
    Have you received confirmation from the finance house that you have paid 80% of the amount borrowed or is this your calculation?

    80% of payments may not be 50% of what is due, especially if its a PCP.
  • taffyboyo74
    taffyboyo74 Posts: 6 Forumite
    Options
    Yes I've had confirmation from the finance I only owe £2668 out of £11450
  • taffyboyo74
    taffyboyo74 Posts: 6 Forumite
    Options
    And it a hp agreement not pcp
  • bazzyb
    bazzyb Posts: 1,584 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    taffyboyo74 wrote: »
    Yes I've had confirmation from the finance I only owe £2668 out of £11450

    What is the value of the car now? If there is some equity in it then you may be better off selling (or trading in) and settling the finance rather than doing a VT.
  • taffyboyo74
    taffyboyo74 Posts: 6 Forumite
    Options
    The car is only worth now a maximum of £1500
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards