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

[Mr Silva]

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

I get the APR to be 10.4% is that about right ?

Settlement on VS as you say would be £25,285.60, less any sale on the vehicle..

Settlement via VT would cost you £14,687.

So in your case, going off these figures the voluntary surrender would be by far the best option. This is because there was no deposit made and also the value of the goods has held up reasonably well.

10.4% is exactly right!
Thanks so much for your time and effort, it's really appreciated. So, if I understand everything correctly, of the two ways of giving back the vehicle, the VS has the best chance of costing me less but is still a gamble as we don't know whether they'll bother to get the best price or just accept trade value (14k) for it (probably the latter) so I'll still need to pay off over 10k? As the motorhome company are offering to sell on my behalf and guarantee me 19.5k I think that's probably the very best option open to me as I only need to part with £5,500 to clear it.

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

I get the APR to be 10.4% is that about right ?

Settlement on VS as you say would be £25,285.60, less any sale on the vehicle..

Settlement via VT would cost you £14,687.

So in your case, going off these figures the voluntary surrender would be by far the best option. This is because there was no deposit made and also the value of the goods has held up reasonably well.

[ncf355]

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

Andy, are you with me in thinking the early settlement figure doesnt add up?

[Mr Silva]

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

How much are your individual monthly repayments ?

They are 366.38 and I've made 20 of them so far totalling 7327.60

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

Thanks again! So the figures I have are as follows. Cash price of vehicle was 27,848.31. No deposit (part ex cleared previous finance). Total amount payable is £44,120.60. I've made monthly payments totalling £7327.60. Under 'Termination: your rights' it states they are entitled to half the total amount payable which is £22,060.30. I spoke to the place I bought it from and they said its current market value, trade, is around £14,000.00 (they agreed to sell the vehicle for me and would guarantee me £19,500 after the sale leaving me £5,500.00 to find to clear the previously mentioned settlement figure of 25,000.) So I guess it's all about which figures add up most favourably.

How much are your individual monthly repayments ?

[Mr Silva]

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

Thanks again! So the figures I have are as follows. Cash price of vehicle was 27,848.31. No deposit (part ex cleared previous finance). Total amount payable is £44,120.60. I've made monthly payments totalling £7327.60. Under 'Termination: your rights' it states they are entitled to half the total amount payable which is £22,060.30. I spoke to the place I bought it from and they said its current market value, trade, is around £14,000.00 (they agreed to sell the vehicle for me and would guarantee me £19,500 after the sale leaving me £5,500.00 to find to clear the previously mentioned settlement figure of 25,000.) So I guess it's all about which figures add up most favourably.

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

thanks so much for that. in this instance is the total agreement price the 44k?

Yes, and the total you have paid for VT purposes would include any deposit or part exchange you made.

If you post the figures I can work out both sets of post termination sums for you if you like, although obviously the voluntary surrender figure will be less whatever the vehicle raises on sale.

[Mr Silva]

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

thanks so much for that. in this instance is the total agreement price the 44k?

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

wow, great information being passed on here, thanks so much! i'm brand new to the forum and as many of you before me I have a question about VT's.
I'd like to vt a motorhome that I've had for around 19 months now. The finance is with black horse. I borrowed 27k (over 10 years) to buy the vehicle and have made just over 7k in payments. I rang them today to request a settlement figure and was told 25k. i understand they front load these agreements with interest so not much of a surprise. I obviously haven't made 50% of the payments required not to be charged but I am somewhat prepared for this. The original agreement stated that the total payable after 120 payments would be 44k (approx). My question is this, when i VT this agreement am i liable to pay the 25k (stated as the settlement figure) minus what they auction the motorhome for or am I liable to pay 50% of that 44k total minus what they auction it for(22k)? Also do they take into account the 7k in payments already made? It's all a bit confusing, hope you can help?

You can voluntarily terminate the car at any time, you do not have to have paid 50% of the agreement price.
It is just that this is the amount that would be due after you terminate. So if you have already paid that much(this figure includes any deposit or part exchange) you will not owe any further amounts.

There should be a figure on your agreement under the heading voluntary termination or something along those lines, this should be one half of the total agreement price of the car.

If you add up everything you have paid upto date and subtract it from this figure this will be the amount you would have to pay upon termination.(or after). Just to be clear you do not have to have paid this amount in order to VT, this will be the amount due after you VT.(when the car has gone back).

The other option is to voluntarily surrender the vehicle, if you do this they will sell the car and deduct whatever they get for it from the full agreement price and you will be liable for the difference, less some(small) early settlement rebate.(this is probable the method they quoted)

You will have to do the figures and see which option is best for you, it depends on the current value of the car (how much of a bargain you made when you bought it) , also how much deposit you paid.

[Mr Silva]

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

wow, great information being passed on here, thanks so much! i'm brand new to the forum and as many of you before me I have a question about VT's.
I'd like to vt a motorhome that I've had for around 19 months now. The finance is with black horse. I borrowed 27k (over 10 years) to buy the vehicle and have made just over 7k in payments. I rang them today to request a settlement figure and was told 25k. i understand they front load these agreements with interest so not much of a surprise. I obviously haven't made 50% of the payments required not to be charged but I am somewhat prepared for this. The original agreement stated that the total payable after 120 payments would be 44k (approx). My question is this, when i VT this agreement am i liable to pay the 25k (stated as the settlement figure) minus what they auction the motorhome for or am I liable to pay 50% of that 44k total minus what they auction it for(22k)? Also do they take into account the 7k in payments already made? It's all a bit confusing, hope you can help?

[trickygj]

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

I have checked and there is nothing else about termination. It seems that I have hired it for 24 months and they will expect the full rental to be paid. Suppose I will just have to let it sit on my drive or hand it back to save on insurance when it runs out and pay them the remainder of the contract.

[trickygj]

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

Here are the relevant pages. Not a lot to be said on the matter really?

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

Where do I email it too?

No cant do that (forum rules) you will have to post it up I am afraid, suitably redacted of any personal information of course.

[trickygj]

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

Yes anything regarding early termination on the agreement would be relevant.

Where do I email it too?

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

Hi andy58

It is hire contract for a small new van. I simply have hired the vehicle for 24 months and then return it. It obviously has a mileage limit etc, I can let you see the agreement if you want, no problem.

Yes anything regarding early termination on the agreement would be relevant.