Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

[PFIN9922]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

They can't refuse a statutory right, simple as that. As ostell has said dig out your agreement and see what it says - there will be a box or section relating to how much the half the total amount payable is. Calculate your monthly payments by the number of months you have paid which will give an estimate of whether you are close to that amount. If you are above, you can VT and give reasonable notice i.e. 14 days to collect the car. If you are just short of that then you can still VT the car and pay the difference which makes up the half the total amount.

Don't listen to what someone on the phone says.

The agreement does offer a payment at the end of the contract in which you then own the car, this does intact work out to be in the region of about £8000. Ive read on a few of the previous threads that you don't have to pay this in advance with a potential option to pay back the amount owed over a set period of time. Can someone please clarify if possible.

Thanks.

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I'm new on here so a big hello to everyone.

Im looking for some advice, I am 2 years into a 4 year agreement with Mercedes. I was looking to VT as I recently became a dad and the car is not suitable for a young family. I contacted Mercedes and said i would like to VT and they say I have a short fall of over £8000. Am i liable for this payment? I (probably mistakenly) was under the impression that it was half way through the agreement you could terminate but now i have read on here that its 50% of the total amount payable. They are saying that they refuse to accept my request to VT until the £8000 is paid in advance and in full. Does this sound correct?

Thanks,

P

They can't refuse a statutory right, simple as that. As ostell has said dig out your agreement and see what it says - there will be a box or section relating to how much the half the total amount payable is. Calculate your monthly payments by the number of months you have paid which will give an estimate of whether you are close to that amount. If you are above, you can VT and give reasonable notice i.e. 14 days to collect the car. If you are just short of that then you can still VT the car and pay the difference which makes up the half the total amount.

Don't listen to what someone on the phone says.

[ostell]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Dig out the agreement and see what it says on there

[PFIN9922]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I'm new on here so a big hello to everyone.

Im looking for some advice, I am 2 years into a 4 year agreement with Mercedes. I was looking to VT as I recently became a dad and the car is not suitable for a young family. I contacted Mercedes and said i would like to VT and they say I have a short fall of over £8000. Am i liable for this payment? I (probably mistakenly) was under the impression that it was half way through the agreement you could terminate but now i have read on here that its 50% of the total amount payable. They are saying that they refuse to accept my request to VT until the £8000 is paid in advance and in full. Does this sound correct?

Thanks,

P

[ChrisP88]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi,
I am about to VT my car finance deal and have paid over 50%, if I send the letter and give 14 days notice will I have to make my next payment which is due on the 2nd of december?(within the 14 day period) or can I cancel the Direct Debit as soon as I have confirmation they have received my VT lettter?
thank you in advance

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It is not damage to your file, it is not a default but they are allowed to put the reason why your agreement was settled if they wished to so it wi say settled then a note to say agreement VT which is factually correct. It doesn't affect your credit file. And no they cannot charge you excessive mileage.

There is plenty of posts on here about excess mileage and VT - have a read of some

[Colinhill]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi
I sent a VT letter to ford credit last week and received a phone call from them today. She said they will put a marker on my credit file to say I have done a VT and also said I am still liable for the excess mileage as per my contract. I have had to cancel the VT as I cannot risk damage to my credit file. Is this right? What damage will it do? Can they charge me the excess mileage?

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It's usually 50% of the total amount not including the option to purchase but i am not too familiar with PCP agreements. If it is regulated by the consumer credit act you will have on your agreement in a box usually in the front page or under the termination section how much you must pay before you can voluntarily terminate.

Be sure to take plenty of pictures of the car inside and out including any potential damage to the car you may think they'll charge for.

You could invoke your right to terminate before the 50% mark and pay the difference or wait until you have hit that mark and then write to them to terminate. Bear in mind he common issues everyone has (including myself) is that they will try to charge you for collection, excess mileage and or damage above and beyond reasonable condition of the car (accounting for age of car).

Don't be fooled into paying them as they have no right to do so.

[LSH]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Hi

I am sorry if this has been asked a million times, but I have just linked to this forum from Car Expert and there are 650 responses!

I am looking at switching to owning a car after being on PCPs for a while.

I am currently on a 48 month PCP with Fiat and am coming up to 24 months. I understand there is this caveat of having to pay 50% - but I am unclear as to what the 50% is. Is it 50% of the amount due over the 4 year PCP period, or is it 50% of the entire car value including the option to purchase payment that would have been due at the end of the 4 year period, if I had opted to own the vehicle?

Thank you for any advice. I really want rid of this car!

[judgemental24]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

You can instigate the VT process at any time

You do not have to hit the 50% mark first to instigate the process

You simply carry on your normal monthly contractual obligations until you hit that 50% mark without the vehile in your possession

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

You would normally give reasonable notice to VT your agreement which is usually 14 days. Send your VT letter to the correct address as required in your agreement and I would always send it at least recorded delivery to confirm it has been received - I received my VT letter within 2 weeks of sending mine, getting your credit report updated to show settled may be a different story as I am having issues with my finance co.

As for another car, no troubles I have done this before but you may have issues getting finance with the same co you VT'd with, or they may just increase interest rates.

[gavnav]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Sure you can end a template letter, if your calculations are correct then you will be asked to pay £160 which will make up that amount. Before you do it might be worth giving them another call and asking again how much you have paid in total, or specifically how many months you have paid., if it doesn't add up then maybe query it and see what their response is. The amount of credit is obviously a large amount so you might want to be sure that you are correct before firing off a letter to terminate.

I have just come off of the phone to audi finance, and the total i have paid is £20988.35 (including deposit) so i have £696.77 to hit the 50% mark. How long does the VT process normally take from when i send the letter to them? I know i would be giving them 14 days notice?

Also, anyone who has done this, have you had trouble then getting another car? I'm leasing my next one.

Thanks again for all of your help guys

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Sure you can end a template letter, if your calculations are correct then you will be asked to pay £160 which will make up that amount. Before you do it might be worth giving them another call and asking again how much you have paid in total, or specifically how many months you have paid., if it doesn't add up then maybe query it and see what their response is. The amount of credit is obviously a large amount so you might want to be sure that you are correct before firing off a letter to terminate.

[gavnav]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

It includes the deposit, on the total amount payable section on the agreement (total payable including deposit £43370.23). The 50% total before i can terminate states £21685.12.... I have worked out i am £160 short of this. So i guess i just send one of the template letters?

Thanks for your help

[R0b]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

The deposit would have been taken from the total price as I described in my previous post and the £23,000 or however much it was is stated on your agreement then thats what you must have paid.

If you paid a deposit they may have deducted the deposit from the price of the car before providing the finance. Again you should be given information as to how the total amount has been calculated on your agreement which will usually show the total amount of credit, interest etc.

To find out how much you've paid just work out when your first payment was and x that by the number of months you have paid since then, that will give you a close enough estimate of whether or not you have hit the 50% mark.