Termination of a Bill of Sale with ACF

[Tracyjh421]

Hello,

I have seen that there have been similar posts regarding my situation and hope you can advise.

I have a car on finance and have done since 2011 and have around 1 year to go. The car is starting to play up now and due to the mileage I am travelling I am looking to change it.
I am advised at the time of purchase that I would be able to change my vehicle once over the half way mark. After I contacted ACF in July last year to take this option, I was told that this wasn't the case and I would need a settlement figure and to either pay off the balance or take out a new agreement through new finance at a garage but this wasn't anything they could help with,
After obtaining a settlement figure, I was disgusted to see that the amount owing far exceeded the value for the car. I have negative equity.

After doing a bit of digging I have now discovered ACF are no longer trading - probably due to the excessive complaints I have seen about them.

My question is can I return the car in any way? cancel this bill of sale and get rid of The Funding Corporation once and for all?

Thanks

[nemesis45]

Re: Termination of a Bill of Sale with ACF

Hi Welcome,
Have you traced the successors to ACF?
If it has ceased trading who is processing your payments?

[Tracyjh421]

Re: Termination of a Bill of Sale with ACF

Sorry what do you mean by traced? I am still making the regular payments to The Funding Corporation but as per the trading news, The Funding Corporation made an announcement in October to advise they had ceased trading as ACF.

[nemesis45]

Re: Termination of a Bill of Sale with ACF

Companies House shows ACF as Active:.

[Tracyjh421]

Re: Termination of a Bill of Sale with ACF

http://www.am-online.com/news/2014/1...e-sites/36927/

The Funding Corporation (TFC) has closed ACF Car Finance, its branch with five retail sites selling used vehicles on group loans, ahead of a push to increase advances through motor retailers.

Dated 1st Oct 2014

[nemesis45]

Re: Termination of a Bill of Sale with ACF

Should have no effect really as your contract is with TFC, have you tried to make further contact now it has new finance products in place?
Do you all the documents issued at the time you purchased the car?
These would have to show details for VT etc.

[Tracyjh421]

Re: Termination of a Bill of Sale with ACF

I do have docs but I was under the impression you can not VT a bill of sale.

Thanks
Tracy

[des8]

Re: Termination of a Bill of Sale with ACF

Sorry to say, but the answers to your questions are all negative.

I understand the process is briefly:
With a Bill of Sale finance agreement you are virtually without rights as you cannot hand back or VT
Your settlement figure should be less than the outstanding current balance, as it should take into account interest rebate.
If you don't settle the account now and then fail to keep up with the instalments, the vehicle will be repossessed, sold and you will then be liable for the outstanding amount.

If your original deal included PPI you might be able to reclaim any premiums paid, plus the interest that was added if the PPI premium was added to the loan,

Others on this site are more knowledgeable than I about these matters, so hopefully they will post

[des8]

Re: Termination of a Bill of Sale with ACF

One other point to check in their calculation is the value of the vehicle.
As the vehicle is a year younger than anticipated in the original calculations when purchased, its estimated value should be higher

Volkswagen Financial Services v. Ramage, Cambridge CC 9.5.07
R hired a car against 36 set monthly payments. Upon repudiation the hirer
was required to pay the total amount less rentals paid and a rebate on
rentals not yet due. He fell into arrears after 1 year. V gave notice of
repudiation, repossessed the car and sued under the contract for £13,000.
The DJ found that the clauses in question was a liquidated damages
provision which was appropriate where calculation of loss was tricky and
the terms had been freely agreed. The J disagreed. Because all future
rentals were also provided for, subject only to a 4% p.a. discount, no
account was taken of the much greater value of the car occasioned by its
early return, rather than after 3 years. It should have been, if the clause
were a genuine pre-estimate of loss, which in any case required some
form of calculation based on common-law principles, as well as some
recognition that these were variable figures in each particular instance. R’s
intelligence (he was a tax consultant) was beside the point: smart people
are just as entitled as halfwits to challenge illegal penalty clauses.