Voluntary Termination - RCI Finance

[PhilCox12]

Hey guys,

Been reading quite a bit on here over the past few days about VT as I am potentially considering it. I've got just over 1k left on my current PCP to meet the 50% required to VT the contract, but had a few questions that I would really appreciate some help on. The reason I want to VT is because the car I have has been discontinued and the price has crashed meaning there is a load of negative equity in it, but I would quite like to upgrade early. Instead of putting a deposit in I got advised that I may as well hand back the car and just take a 0% deposit PCP out as it would be cheaper in the long run (bit of background).

So:

- Do I have to wait for any kind of confirmation when sending the VT letter (will use template on here) before negotiating new finance for the new car? The reason I ask is because I don't want to be left without a car for a prolonged period of time, so would rather have the new car prior to my old one being collected.
- What is fair wear and tear? The car is generally in good condition (no bumps, dents, or cracks) but does have a few scratches on passenger door (as if someone keyed it but very thin) and a few bumps to the wheels (hit curb type of thing). Should I just fix these before or wait and see what they say on collection?
- They've already said on the phone that they will charge excess mileage which I've read about loads. Pro rata I will be over the mileage by like 2000 (currently under it by 1000), but I doubt they can win that claim?

My current plan is:
- Secure finance for new car.
- Send letter for VT and pay remaining amount.
- Wait for collection and damages assessment.

Is this the right thing to do under the circumstances?

Thanks a lot for any help!

Phil

[PhilCox12]

R0b any advice on this as you seem to be the man with all the knowledge!

[R0b]

Morning Phil, to answer your questions in the same order:

1. Strictly speaking, you don't need to wait for the lender to confirm the VT. It is a unilateral right and you are only required to give notice to them that you are terminating the agreement. So long as you can prove that notice was given e.g. by email or if by post, either recorded delivery or a proof of postage receipt then that is sufficient notice. Do be aware that some companies may have a backlog so they might not respond immediately and could be some weeks so you may need to do some chasing up but its not mandatory. If you have an outstanding amount that has not yet been paid, you should brace yourself for RCI rejecting your notice to terminate saying you must pay up first (but of course this is not true it just means the outstanding amount becomes payable).

2. Fair wear and tear is subjective. Most lenders use the BVRLA Guidelines which are very strict and doesn't factor into the account the age of the car or other factors. For example, the BVLRA might say that any scratch that is longer than 5cm is not fair wear and tear. That condition would apply to a car that is brand new but also a 10 year old car which you would perhaps expect to have sustained more damage i.e. curbed alloy wheels which is part and parcel of driving a car every day though it depends on how damaged they are. There may also be an argument that if you are a family and have kids then that is also another factor to take into account.

The CCA requires you to take reasonable car of the car but in my view, the BVRLA guidelines impose a higher standard of care in certain circumstances. I would argue that the CAP HPI Conditions set out a better standard of wear and tear as well as taking into account the age of the car (see attached document below). There is also some case law on what is considered by keeping the car in good repair and condition and here's a quote:

"There should be evidence by the hire-purchase company to show the condition of the goods at the time the agreement was made and to show how far the hirer has defaulted under it. As I read this clause, the hirer's duty is to keep the car in the condition in which it might reasonably be expected to be if he had looked after it properly. He need not put it in a better condition than it was when he hired it. He need only keep it in the condition in which a reasonably minded hirer would keep it. Thus he would repair it if there was an accident, and he would do the immediate repairs in the course of running the car, but no more. The hire-purchase company should give evidence of any default on his part in that duty."

3. Excess mileage has been well documented on here, so I would suggest you read up on the relevant threads. There is a sticky thread at the top of this sub-forum where someone successfully defended a claim against Mercedes for excess mileage you should read up on that.

I can't tell you the best way to go about ensuring you maintain a car in your possession, but it would seem like securing finance on your next car would be the starting point though just be aware that you could end up with two cars for a little while until RCI decide to pull their finger out and you are responsible for its safe-keeping and condition.