VTF

[Racy Tracy]

Hello.....please could somebody explain to me what a Voluntary Termination Figure is/means??......I thought I knew what this was but after speaking with my brother in law i am now unsure. My husband was killed in a motorcycle accident on the 12th April this year (my birthday too).....we have a car that my husband paid for and all the finance details etc are in his name only. Regretfully the car is going to have to car, as I cant afford the payments on it as I dont work, so hence for that same reason I would not get credit. This doesnt bother me too much as my husband had his own van and I intend to use that for a means of transport, but because we hadnt had the car long before my husbands death, there is a deficit on the vehicle that needs to be paid, however.....I was told to ask for a Voluntary Termination Figure rather than accepting a settlement figure, as the VTF amount can sometimes be a lesser amount. The way that i thought i understood it was.....the VTF figure is the amount that would need to have been paid for me to surrender the car and that be the end of it......in this case that figure is £4,901.00.....I have been told that up to my husbands death he had paid £3,791.40, so the way that I understood it was....for me to surrender the car I would have to make up the difference between those two figures, so I would have to pay £1,109.60 as well as handing the car back......however my brother in law thinks that that is not the case, he says that the VTF is the amount that has to be paid, so i would have to pay £4,901.00 and not the lesser amount......

Please please please can somebody tell me if either im right or my brother in law is,


Hope all that makes some sense to somebody

[Wombats]

Re: VTF

There is a difference between VT and Surrendering.

On the credit agreement is a 'halfway' figure specified. This is the figure used for doing a VT. In a VT you officially terminate the agreement. You can do this at any time, but you are liable for any balance up to the 50% mark (less any payments made, deposit and part ex). The car is then handed back and you walk away. Done. (It can get a little bit more involved, but that will do for now).

With a surrender, you hand the car back, but you remain liable for the full sum outstanding under the agreement.

Does that answer what you need to know for now? If you do a VT, often a great way of handling things in the tragic circumstances such as those you are sadly dealing with, have a read of this:

http://www.legalbeagles.info/forums/...r-the-CCA-1974

[Racy Tracy]

Re: VTF

thanks for that Wombat, but even after reading that
i am still a little confused.......if I surrender the car (which looks like my only option) how much will i be liable for?.....will it be the voluntary termination figure which is £4,901.00.....or will it be the difference in what my husband has paid so far and the voluntary termination figure which is £1,109.60???? this is what I am confused by........will i be paying £4,901.00 or £1,109.60........also another concern I had was that I could be changed for collection of the vehicle, but after reading the link that you provided, am I right in saying that they cant charge me such a fee??.......

[Wombats]

Re: VTF

If you VT the car you are liable for 50% (the amount stated on the agreement) LESS any payments made, any deposit paid and any figure allowed for a part ex assuming the car is in reasonable condition.

If you surrender the car you are liable for the FULL outstanding balance remaining under the agreement.