Voluntary termination of contract hire purchase - queries

[Tw1glet1]

I am looking to return my car to Audi - reasons being it is no longer practical for 2 growing kids and 2 dogs (!!!) It's on a contract hire purchase agreement over 4 years. I have 7 months to go and have paid in excess of the 50%. I am about to get the following sorted 1) chipped windscreen repair 2) scuffs repaired on the alloys 3) paint chip on the body work 4) full valet inside and out. It will be parked up off-road and under tarp until collected. Car has been fully serviced and MOT-ed by my local Audi garage - everything including tyre replacements have been through them.

My replacement (non Audi) car arrives on 28th January so I plan to write out to Audi Finance on this date to confirm VT - I am going to use the letter template on this site which gives 14 days for collection. I will send 'signed for' and also copy to their email address.

My queries are:

• Do I need to maintain tax and insurance on the Audi until its collected? If so when will I be able to cancel these?
• I have a service plan with Audi that I pay monthly by DD - should I go ahead and get this cancelled now in advance...or after the car is collected. I am unsure whether I will have to pay anything extra on this.
• My next DD payment will be within the 14 days set for collection - do I need to send this payment; I do not want to run the risk of a missed payment on my credit history but similiarly don't want to pay if I don't need to.

What I am trying to avoid is doubling up of tax, insurance, agreement payments and Audi service plan next month.

Many thanks for any help - not done this before.

:doggieyes:

[Tw1glet1]

Re: Voluntary termination of contract hire purchase - queries

tagging @R0b

[R0b]

Re: Voluntary termination of contract hire purchase - queries

VT can be a drawn out process with some of these finance companies, but if you want to VT then I would advise to cancel the DD once you have confirmed signed delivery, though if it is not signed you cannot cancel, which is why sending 1st class and getting proof of postage as that will mean you can rely on normal delivery rules, but is up to you. Alternatively you could give notice by email and say that a letter has been posted which will arrive in due course, just to cover your back and have a paper trail.

Once the letter is received then the VT is effected and no more payments are due. Again, Audi will probably argue otherwise over this.

Technically, once you VT you are not liable for any additional liabilities which could include paying for the tax and insurance, but if you cancel, there is the possibility that the car could be picked up and impounded to the detriment of Audi. I would say its a bit murky to cancel the tax and insurance without giving them the opportunity to collect it, so I would suggest you give them the benefit of the doubt and allow the 14 days to respond and collect otherwise you will cancel the tax and insurace - make sure this is expressly stated in the letter, can't remember if it is in there or not.