Voluntary Termination - driving and insurance after notifying

[charliesdad79]

Hi All

After you have started the voluntary termination process are you legally still allowed to continue driving the car until it is collected? If NOT then do you need to keep up the insurance on the car until collection or is it no longer your responsibility?

Thanks

[Kati]

Re: Voluntary Termination - driving and insurance after notifying

tagging [MENTION=71570]R0b[/MENTION] xx

[R0b]

Re: Voluntary Termination - driving and insurance after notifying

The right to use the car is contained in the agreement but as soon as it is terminated, those rights fall away unless the lender agrees that you can drive it following termination. In reality, the lender is unlikely to know whether or not you have driven it since termination so there's a low risk in being found out. The lender could theoretically claim any loss of value as a result of the driving post-termination so for example, If you VT the agreement and told the lender that the mileage at the time was 35,000 miles but it turns out that the car on collection had done 42,000 miles then unless they have given their permission, they would be entitled to claw back the difference in value. The same applies if you drive the car without their knowledge and you have an road traffic accident.

It is common for lenders to say you must keep insurance and tax on the car until it is collected (presumably as it's an additional cost to them) but that isn't true. Your liability is limited to 50% of the total amount and does not extend to maintaining insurance or tax. As soon as termination is effected, your job is to avoid causing physical damage to the car but nothing more.

[charliesdad79]

Re: Voluntary Termination - driving and insurance after notifying

Thanks R0b. Appreciate the reply.