Santander Hire Purchase VT

[ml6dada]

Hi,

Just looking for a little advice, I currently have a vehicle on 5 year HP with Santander. I have had the car for 3 years and now paid over 50% and have never missed any payments.

The car is on a 0% finance deal and is in good condition just usual wear and tear I want to VT but just worried if it will affect my credit in anyway?

Thanks

[R0b]

Re: Santander Hire Purchase VT

Hello,

It will not affect your credit rating but they are entitled to put a reason why the HP terminated. This could affect getting credit for a car again but usually you won't get credit again from the same lender for a while or the interest rate will be higher than normal. If you want more information on VT, click on the link in my signature below.

[ml6dada]

Re: Santander Hire Purchase VT

Hi,

Thanks for getting back to me. So there is a chance it can affect me getting vehicle finance again even with another company?

[R0b]

Re: Santander Hire Purchase VT

Potentially yes but realistically no. I have been with Santander twice for HP/conditional sale agreements so there has been no problem. Some companies may however add extra interest if they discover you have VT'd because you create the risk that you are unlikely to fulfil the agreement and they will ultimately make a loss. So they could increase the interest by a few % as a precaution.

[ml6dada]

Re: Santander Hire Purchase VT

I understand it looks like a risk to other finance companies. I'm looking at leasing so not sure if that will still be the same issue of a higher percentage. Think I may apply for a lease vehicle before I VT.

[R0b]

Re: Santander Hire Purchase VT

I wouldn't overstress, if you have good credit history then there should be no issue in getting credit again on a vehicle. Just beware on a lease (except a PCP you can VT but not a PCH) you cannot VT and if you terminate the agreement early your likely to have to pay substantial amount close to or if not, the remainder of the agreement.

[ml6dada]

Re: Santander Hire Purchase VT

Thanks you have been very helpful. I'm looking at PCP so should be safe in regards to VT

[ml6dada]

Re: Santander Hire Purchase VT

Hi again,

I'm send my letter this week but my car has a private registration do I need to put it on retention and notify them before I send VT letter?

Thanks

[R0b]

Re: Santander Hire Purchase VT

Well, you will need to inform the DVLA and wait for the V5C to change wont you. Ideally you should have done this before you VT'd as you ought to have been aware that is what you are supposed to do. They will need to collect the vehicle from you so you will need to arrange that as soon as possible once everything has been changed.

[ml6dada]

Re: Santander Hire Purchase VT

I have not sent VT letter yet so will put my plate on retention and inform finance company of plate change. Then VT.

Do I cancel my DD or not?

[R0b]

Re: Santander Hire Purchase VT

I dont think you need to inform them of the plate change if you changed it after you got the vehicle.

I would cancel your DD after the letter has been sent in accordance with the usual post times of royal mail +1 day just to be safe.

[ml6dada]

Re: Santander Hire Purchase VT

Thanks for your help.

[ml6dada]

Re: Santander Hire Purchase VT

Sorry to bring up an old thread. I VT'D on the 20/09/16 and still waiting for the vehicle to be collected. I Received a letter from the collection company on 26/10/2016 saying they would contact me in 3 days to arrange a suitable time to collect the vehicle yet still waiting and the finace company want me to pay a £70.00 collection fee.

What should I do?

[R0b]

Re: Santander Hire Purchase VT

Contact the collection company and tell them they need to come and collect the car immediately as they have failed to contatc you within 3 days of the letter to arrange a collection date. If they don't arrange something then you will notify Santander of this and if the car is not collected within a reasonable period of time then you will exercise your legal right to sell the car or cancel the tax and insurance on it and responsibility will rest with the collection company/santander for any losses incurred.

[ml6dada]

Re: Santander Hire Purchase VT

The car has finally gone back. After VT'ing in october I now find that on my credit report they have not closed the account but marked as 2 late payments which obviously will cause me issues. What should I do?