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  • FIRST POST
    • dcurrie23
    • By dcurrie23 6th Feb 18, 5:40 PM
    • 2Posts
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    dcurrie23
    VT car finance less than 50%
    • #1
    • 6th Feb 18, 5:40 PM
    VT car finance less than 50% 6th Feb 18 at 5:40 PM
    Hi


    I know this is a subject that has covered quite a few miles but after searching i cant find the answer i need.
    Due to unforseen circumstances i can no longer afford the payments on my car. I have had the car approx 18months and its a 60 month agreement.


    I understand i can VT the car but will have to pay the balance up to 50% which is a lot due to the high interest (moneybarn) this obviously will not help my financial situation one bit!.


    My query is...the total amount of the loan including interest etc is 17000 ( car cost 9495!) i have paid approx 5300 to date does that leave me with 3200 still to pay??.


    I understand the car will be put to auction, what happens to the proceeds from that?, does that count towards the figure?.


    Any advice greatfully recieved!.
Page 1
    • molerat
    • By molerat 6th Feb 18, 5:47 PM
    • 18,345 Posts
    • 12,518 Thanks
    molerat
    • #2
    • 6th Feb 18, 5:47 PM
    • #2
    • 6th Feb 18, 5:47 PM
    The amount you have paid is all payments to date including any deposit so if the total agreement figure is 17000 then yes you have around 3200 to pay to hand the car back. What they get at auction has no bearing on how much you have to pay. All the numbers will be on your credit agreement.
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    • dcurrie23
    • By dcurrie23 6th Feb 18, 6:01 PM
    • 2 Posts
    • 0 Thanks
    dcurrie23
    • #3
    • 6th Feb 18, 6:01 PM
    • #3
    • 6th Feb 18, 6:01 PM
    Thats what i feared, i suppose the word "fair" doesnt really apply, but surley paying the interest on the full term isnt very fair when i believe it is calculated on a daily basis?
    • Sparx
    • By Sparx 6th Feb 18, 6:37 PM
    • 877 Posts
    • 478 Thanks
    Sparx
    • #4
    • 6th Feb 18, 6:37 PM
    • #4
    • 6th Feb 18, 6:37 PM
    You are not paying the full term interest though? You are paying 50% of the total, so that's limiting the debt not making you any worse off.

    Voluntary Termination is a legal right to end the agreement early, the only penalty is you pay up to 50% still and the car has to roadworthy, not have any severe damage etc or usually incur additional charges.

    You don't get that option with any other loan, credit card etc count yourself lucky! Think of it on the flip-side, what are your other options? You default, it gets repossessed and you're liable for the whole balance. So you owe more money and get a Default on your credit file. THAT is making you worse off...

    VT is an amicable way to end the agreement and sounds a sensible option if affordability is now an issue. If it's any use to you, once you VT the debt becomes unsecured, so if your finances are that bad you're looking at a DMP, IVA or Bankruptcy etc - then the balance left can be included if needed.
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