Voluntary termination and understanding my finance agreement - help

[Natty86]

Hi 👋🏻

looking for some advice in relation to voluntary termination for my vehicle.
Move requested a copy of my finance agreement from the finance company as when looking through my paperwork I was given at the time of the sale there was nothing given to me other than the order of the new car part exchange and some vague terms and conditions.
looking At the paperwork the termination part of my contract doesn’t state a date just states the figure £8937.80.
Now I’ve tried to workout how much I’ve paid on instalments and just can’t figure it out as it seems quite short and as if I will never get to this figure even once Finance is up so I’m super confused.
i also thought I was on PCP but this agreement refers to a “hire purchase agreement”?! I have also never heard of the salesman on the paperwork as it was a lady who I bought the car through?!
ive attached the finance workings out and hoping someone can help?!
my settlement figure is £7877.12 not sure if this is at all linked at all.
im so confused.
ideally I just want rid of the vehicle costing the least amount possible

thanks

[Firehorse66]

Re: Voluntary termination and understanding my finance agreement - help

Hi,
As I understand it (and unfortunately I have had to learn about car finance very quickly) you have an agreement that allows you to hand back the car (voluntary termination) once you have paid 50% of the loan.

By the information given, and assuming you have never missed a payment you appear to have already paid £9603.54. Using the figures on the agreement you posted I added the deposit, plus April 2015s payment and then all the payments made from May 2015 to January 2018, to give this sum. I have assumed you have not missed any payments.

As long as you have stayed within the mileage agreed in the agreement (was there any?) and the vehicle is in good condition, from my understanding you should be able to write to the finance company and say you want to voluntarily terminate the agreement and there will be no further cost to you. There are template letters and information about how to do this on another thread.

As I said, this is my interpretation and I am no expert, others might disagree, but that is how I understand it from the information you have given.

Good Luck!

[Natty86]

Re: Voluntary termination and understanding my finance agreement - help

Hi,
As I understand it (and unfortunately I have had to learn about car finance very quickly) you have an agreement that allows you to hand back the car (voluntary termination) once you have paid 50% of the loan.

By the information given, and assuming you have never missed a payment you appear to have already paid £9603.54. Using the figures on the agreement you posted I added the deposit, plus April 2015s payment and then all the payments made from May 2015 to January 2018, to give this sum. I have assumed you have not missed any payments.

As long as you have stayed within the mileage agreed in the agreement (was there any?) and the vehicle is in good condition, from my understanding you should be able to write to the finance company and say you want to voluntarily terminate the agreement and there will be no further cost to you. There are template letters and information about how to do this on another thread.

As I said, this is my interpretation and I am no expert, others might disagree, but that is how I understand it from the information you have given.

Good Luck!

Thank you!! All the different amounts really confused me and I couldn’t work out whether I’d paid enough already including interest etc. I was a bit reluctant to contact the finance company as I haven’t considered all my options yet. I just wanted to try and figure out if I’d paid enough to VT.

i can confirm I’ve never missed a payment and I’m well below my mileage it was 6,000 per year and I’ve only done 9,250!! Basically the car isn’t going to be worth anything near the balloon payment when I’ve paid it off and don’t want to waste nearly another year paying for something that is literally wasting my money and I don’t enjoy driving - hence the low mileage!

Theres a few wear and tear scratches I’m hoping will T-cut out as I have no doubt they’ll try and charge the earth but other than that car is in great condition