Voluntary termination hp agreement

[Sleepless10]

From what I have read I believe you can VT a car at any time, it doesn't have to be at the halfway point. Is this correct? Also I assume I would have to pay the remainder of payments, which is only 2, to take it up to the halfway amount. When would I have to pay this?

[R0b]

Hello

Yes you are correct. Contrary to what lender say, you do not have to pay 50% before you can officially terminate the agreement - you can VT at any point in time during the period of the contract right up until the penultimate payment, it just means that the remaining balance owed becomes due and is considered a debt. You are liable to pay it on demand and the finance company has a right to pursue you for that unpaid balance.

Number of ways you can do it, either making the payment first (which might attract an additional surcharge) or you can give your notice to VT, see whether they (wrongfully) refuse to accept your notice or you can send the notice to VT enclosing a cheque made payable to the finance company.

[Sleepless10]

Hi again! I VT'd my car with Billing Finance last Friday (using your template). Received an email today from an auction house saying they will collect the car on Friday. I had two payments to make, totally £420, to bring me to 50% mark. Phoned Billing Finance to ask how and when to pay this. They said once they have the car back they will assess any damaged, add this to the £420 owing, and deduct it from the half way amount? Is this normal practice? Isn't quite how I was expecting things to go from what I've read. I am prepared to pay the £420. The car is not in perfect condition but would appreciate any advice.

[R0b]

I'm not sure why they are going down that route, any damage to the vehicle should be assessed independently of the total price payable. You can't amalgamate the outstanding balance with any excess damage and then deduct it from the 50% as that is not how the VT arrangement works. You only need to bring the account up to 50% to discharge your liabilities in terms of credit repayments.

If they have issue with the condition of the car then that is a separate matter. I would suggest that if they do try to claim compensation for damage to the vehicle and you dispute it, then I would recommend you send them a cheque for £420 to bring your account up to 50% and dispute the rest.

[Sleepless10]

Can you tell me if I give them the unsigned V5 when they come to collect the car? If so, am I still responsible for it?

[Sleepless10]

Hi, can someone tell me if I notify DVLA that I am no longer the keeper of the car once the finance company have picked up the car or do I leave that to them? So unsure of what to do! Appreciate any help.

[R0b]

Hello

You are liable whilst the car is in your possession irrespective of whether the DVLA updates the V5 or not. If they come and collect I would suggest you update the V5C online by going to https://www.gov.uk/sold-bought-vehicle and you'll need some basic V5 information to process it.