Help with my contract, and wanting to VT

[prendss]

Hi all.

For various reasons, and also due to the fact I believe I was mis-sold my PCP deal 2 years ago (I have complained and gotten no where) I would like to VT.

My contract states the exact wording below:

"You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will be entitled to the return of the goods and to half the total amount payable under this agreement, that is £9533.07. If you have already paid at least this amount plus any overdue installments and you have taken reasonable card of the goods, you will not have to pay any more.

Okay - I'm not completely clued up on VT'ing, so this is where I need clarity.

I pay £205 a month. I am 25 months into a 48 month contract.

1) I have therefore paid £5125. This ultimately means I am short of the £9533 figure allowing me to VT? Correct?

2) I have seen I can VT at any time. If I did now, I would be liable for the difference between 9533 and 5125 correct or not?

3) Confusion here. £9533 will be paid when I have been paying for 46 months (and a half) £205 x 46.5. This is 1 month before my contract is due to end anyway. Is this correct? Does this sound right? Is the balloon figure meant to be taken off the £9533?

I know I sound very naive, however I am just looking for some helpful, clear advice or what I can and cant do, whats correct or not and what I will or wont be liable to pay.

Thanks in advance.

R0b

[R0b]

Hello

If you paid any deposit you would include that as part of your total price paid. If not then it sounds about right.

PCP agreements are a bit of a funny one because some lenders set up the agreement and repayments so that 50% of the total price payable is beyond the total length of the contract and you would end up paying more to VT than simply see your contract through to the end (subject to any claim for damages). In your case it is extremely close but you still have the right to VT nonetheless.

You can VT at any time in the agreement so long as the last payment does not become due - any lender who tells you otherwise is lying and probably in breach of unfair trading practices which can be reported to Trading Standards.

I also suggest you take a look at the VT guide below which probably gives you all the answers you need though it is probably due a refresh but still valid points in there to answer your questions.

http://legalbeagles.info/forums/foru...on-your-rights

[prendss]

Hi R0b

Thanks for the reply.

Vehicle Price: £15494
Less Advance Payment Deposit: £2300
Amount of credit: £13194

Rate of interest - 8.89% pa.

Contract states - Total amount payable (comprising the advance payment, amount of credit acceptance fee, interest and option to purchase fee) is £19066, which is what brings the 50% £9533 figure into play.

Im guessing with the above, £9533 is the figure I need to have paid to VT with no liable charges?

As you said, I can VT at anytime, but if I do now, I will be liable to make up the difference, correct?

Thanks in advance. I will also take a read now.

[R0b]

So your payments to date are as follows:

£205 x 25 = £5,125 PLUS Advanced Deposit = £2,300
Total price paid to date = £7,425

So you only need to pay £2,108 to meet the 50% criteria which works out at 10 further instalments (£2,050) plus a cheque or card payment of £58 or you pay 11 instalments

Yes if you VT before the 50% then you make up the difference