VT Car Finance 24/7 / Advantage Finance - MOT & Damages Questions

[Dewgel]

Hi all,

First post here. Been reading some of the helpful posts on here, great place.

Bit of context; 2 years ago I took out a Car Finance 24/7 / Advantage Finance deal on a Ford Mondeo, £115 per month. I'm now past the half way point with a flawless payment history.

Since picking the car up there has been an oil leak / problematic turbo, I've never got these done as I just simply couldn't afford to sort both. I took the car back to the garage a few days after I got it, the chap working there said the warranty didn't cover stuff like that so it'd be a chargeable repair; had a few personal things going on at the time and left it for a bit.

Fast forward now - MOT is due, failed unfortunately, looking at £350 to get it sorted (2 new tyres, rear bearing, rear shock absorber and front to rear brake pipe). As it stands, I can't afford to get that all sorted now, but I also want out of the deal before the car nets me a massive loss.

I have emailed CF247 to instigate the VT which they've immediately replied, agreed with and informed I have 0 to pay but will be subject to inspection for damages and needs an MOT.

Would anyone have any advice on whether it's worth taking the punt at letting them sort the MOT themselves or should I bite the bullet and get all those things done to then hand it back? It's not something I can afford without putting myself into arrears with other payments but I still don't want to be hit with severe penalties and charges from CF247 charging triple the cost.

If anyone needs any more info don't hesitate to let me know

Regards

[R0b]

Hello

Just to be clear, have CF247 accepted your termination letter but are suggesting that they won't collect until the car has a valid MOT, or are they saying we can't accept/process your VT until the car has a valid MOT? Slightly different understandings but also crucial to determine what rights you might have.

If we assume the former, then the car doesn't need an MOT for them to pick it up as they can arrange for a truck to collect it and take it to its destination. Ordinarily, I would say you are not liable for collection costs but since you have a duty to take reasonable care of the car (and that extends to ensuring it is in a roadworthy condition) then I don't think you can complain if they charge you for it - but be aware it can be a pretty hefty charge, sometimes up to £250 or possibly more depending on where you live.

Depending on what needs fixing to the car will depend on how much it's going to cost you. Arguably, you could say that the finance co. could probably get a better rate for repairing vehicles since they are in the business of car finance and will have relationships with garages and dealerships alike. However, that's not to say they will charge you a fair amount and it could be more than you think which you may regret.

That said, whatever the cost, you could look to repay the amount by instalments if it really comes to that and you can't afford to pay in a lump sum. Whilst we can give you the options, you will ultimately need to decide what's best for you.

[Dewgel]

Hi Rob,

First of all, thanks for replying.

I sent CF247 an enquiry ref voluntary termination, they've replied via letter with the following (copied directly from my email)

"Please read the full contents of this email carefully.

Further to your recent enquiry regarding the voluntary termination of your above numbered agreement, please find below important information outlining the required arrangements.

Upon termination of the above agreement you will need to pay:

1. The outstanding arrears on your account (applicable if already paid 50% of the total amount payable) = £0
2. At least one half of the total amount payable as stated on your Hire Purchase Agreement. This sum takes into account payments you have already paid, any deposit you paid at the start of the agreement and any arrears not shown in (1) above = £0
3. Any outstanding collection charges = £0

The total you will need to pay under this section is £0

If you purchased any insurance products, other than GAP insurance, at the same time as your motor finance and they have not already expired, they will be cancelled upon termination and a pro-rata refund will be applied to your account.

In the case of GAP insurance the policy will be cancelled upon the termination of the agreement and a pro-rata refund will be applied, which will mean that no further sums will be payable (other than arrears) in respect of the policy.

Any other outstanding sums (e.g. payments for expired policies and/or any overdue installments) will remain payable under the terms of your insurance agreement.

In order to settle the insurance element of your agreement and claim any rebate to which you are entitled, you need to pay the amount set out below. This will also ensure that you have no further liability under the insurance element of the contract.

The amount required to do this is £0
Less Rebate £0

Total amount payable under this section £0


Condition of Goods

The goods must be returned in a condition commensurate with their age and mileage, both mechanically and cosmetically. Should the goods not be in this condition when returned you will be required to pay to us the amount required to return the goods to such condition. This amount will be in addition to any sums detailed above (please refer to the terms and conditions of your Hire Purchase Agreement).

Our definition of good repair and condition is that the vehicle must:

• Require minimal refurbishment to be ready for resale
• Have a current MOT certificate or require little or no work for the issue of a new certificate
• Be free from mechanical or body damage
• Be in its original paintwork, trim and specification (as at the time of purchase)
  
  If you are in any doubt as to the condition of the vehicle, you may choose to obtain an independant report from an organisation such as the RAC or AA to confirm the above.
  
  The goods must be returned to us within 21 days of this email to complete the Voluntary Termination.
  
  In order to obtain details of our nearest agent to you please contact us on 01472 570610.
  
  Alternatively, we can arrange for the goods to be collected from your address. An upfront fee of £80.00 will be payable for this.
  
  We look forward to hearing from you.
  
  Yours sincerely,
  Advantage Finance Ltd."

As it stands the local depot they've advised me about is actually less than a mile from my home address, I am comfortable dropping it off there, although I understand legally having no MOT does invalidate my insurance at that stage.

I've just got back from the garage today to see about the MOT and cost of repairs; they've quoted £550 now after a full inspection (Rear Calipers, Brake Pipe, Rear Shocker & Rear Bearing, 2 new tyres), among a few others things such as an on going oil leak and turbo fault that was present when I collected the vehicle.

Although Advantage/CF247 have stated it requires an MOT or little to no work, I think what you say is right in that I could chance that and pay a reasonable amount in installments. It's a difficult pill to swallow to spend money on a car I'm handing back. I guess it all stems down to a learning curve about taking out finance on older cars, I was in a sticky situation when I took the deal with a very poor credit rating, ultimately seeing the deal to the end means I'll have paid £5,500 for a car worth around £1,000 that was in poor mechanical condition at the start. My bad and I own that mistake for not looking properly.

Appreciate your advice and response

Many Thanks