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

[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

[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!

[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.

[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 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

[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

[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

[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

[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.

[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

see the attached image, you should have something like that and that is the target you need to reach to VT. If you dont have anything like that then it could in fact be a fixed loan agreement. If your really usnure then you can post up the contract and retract personal info and can take a look.

[PFIN9922]

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

see the attached image, you should have something like that and that is the target you need to reach to VT. If you dont have anything like that then it could in fact be a fixed loan agreement. If your really usnure then you can post up the contract and retract personal info and can take a look.

Thanks mate, I have reviewed and found the aforementioned paragraph. It does in fact say that the settlement figure is £18,020 and i have paid a little over £10,000. So it looks like I'm snookered and will either have to pay the £8000 surplus or keep the car and continue the payments.

Thanks again for your advice.

Paul

[Cra1g]

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

Hi all, a wealth of information here which I really appreciate, however I'm a little confused and looking for clarification and guidance.

Im looking to vt my 48 month pcp with Nissan due to the vehicle no longer being fit for purpose as I have a growing family and as such have out grown the car very quickly. However I'm unsure how short I am from reaching the 50% required to do so, and whether it takes into consideration the deposit I paid. Equally the figures below don't match up in my head so looking for some help.

My documentation states the following:

Total cash price of goods: £15290.00
Less cash deposit/part exchange (total advance payments): £3000
Total amount of credit: £12290.00
Total charge for credit: £3723.80
The duration of the credit agreement: 48 months
Repayments: 1 monthly instalment(s) of £353.90 on the repayment start date (inclusive of any Finance Facility Fee), followed by 47 monthly instalment(s) of £204.90 and 1 monthly instalment(s) of £6029.60. An Option to Purchase Fee of £149.00 (inc VAT) is included in the final instalment.

However, it then specifies Total amount payable: £19013.80 and specifies I have a right to end this agreement. To do so I must have paid half the total amount payable under this agreement, and states the amount is £9506.90.

However im confused, as I feel this amount should be lower. The basis of this is the price of goods (the vehicle) being £15290.00 minus my £3000 deposit, makes the amount of credit £12290.00, with the total charge of credit being £3723.80 which in turn totals £16013.80 however it then says total amount payable £19013.80, which is what the half amount is based on and I think it should be based on the £16013.80 amount.

To date I've paid towards the car £3000 deposit, the one off amount of £353.90, followed by 15 months of £204.90, So my question is, is it correct that I'm £3433.40 off the 50% mark needed, or is it the case the half amount is wrong and I'm actually £1579.50 off the mark.

Equally am am I right in saying the half amount specified does take into consideration your deposit?

Reslly really appreciate any any help on this one.

Regards
Craig

[R0b]

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

Hi all, a wealth of information here which I really appreciate, however I'm a little confused and looking for clarification and guidance.

Im looking to vt my 48 month pcp with Nissan due to the vehicle no longer being fit for purpose as I have a growing family and as such have out grown the car very quickly. However I'm unsure how short I am from reaching the 50% required to do so, and whether it takes into consideration the deposit I paid. Equally the figures below don't match up in my head so looking for some help.

My documentation states the following:

Total cash price of goods: £15290.00
Less cash deposit/part exchange (total advance payments): £3000
Total amount of credit: £12290.00
Total charge for credit: £3723.80
The duration of the credit agreement: 48 months
Repayments: 1 monthly instalment(s) of £353.90 on the repayment start date (inclusive of any Finance Facility Fee), followed by 47 monthly instalment(s) of £204.90 and 1 monthly instalment(s) of £6029.60. An Option to Purchase Fee of £149.00 (inc VAT) is included in the final instalment.

However, it then specifies Total amount payable: £19013.80 and specifies I have a right to end this agreement. To do so I must have paid half the total amount payable under this agreement, and states the amount is £9506.90.

However im confused, as I feel this amount should be lower. The basis of this is the price of goods (the vehicle) being £15290.00 minus my £3000 deposit, makes the amount of credit £12290.00, with the total charge of credit being £3723.80 which in turn totals £16013.80 however it then says total amount payable £19013.80, which is what the half amount is based on and I think it should be based on the £16013.80 amount.

To date I've paid towards the car £3000 deposit, the one off amount of £353.90, followed by 15 months of £204.90, So my question is, is it correct that I'm £3433.40 off the 50% mark needed, or is it the case the half amount is wrong and I'm actually £1579.50 off the mark.

Equally am am I right in saying the half amount specified does take into consideration your deposit?

Reslly really appreciate any any help on this one.

Regards
Craig

Yes craig you are right, they have deducted the deposit and so they cannot then just add the £3000 back on. I would contact them and query it, your calculations should be right.

[sscoular]

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

Hello all, looking for a bit of advise, looking to VT my agreement with close brothers motor finance due to not being able to afford car anymore, i will be about £2,200 short of the 50% but can raise this, my question is when i send the VT letter from and give them 14 days to collect car do i need to sign anything they send out to me and also do i need to have the £2,200 before i send the VT letter or can i pay it once they agree to the VT, sorry one other question, do i cancel my direct debit 14 days after i send the VT letter