VT of HP and Interest

[Gasdiver]

Hi, I have looked through the posts on VT of HP agreements however, I am into the 18th month of. 42 month agreement and have to pay £6232.45 as the 50% figure. This would equate to another 14 payments to reach this figure.

Attached to the agreement is a final payment of £4432.50 making a total finance figure of £12464.90.

My question is a) if I were to VT this agreement am I liable for the remainder of the 50% shortfall?, and b) does VT'ing an agreement take into account interest payments if the agreement is terminated.

I think i know the answer as being liable for the whole value including interest, but just want to make sure first.

Many thanks.

[judgemental24]

Re: VT of HP and Interest

You can VT the agreement at any time, you do not have to reach the 50% mark to exercise that right or be subjected to any balloon payment at the end

You will still be liable though for all payments up to the up to the 50% mark quoted on the agreement. (21 months of 42) That is handy if you cannot afford to run the car with tax and insurance. The finance company will not tell you that though

Make sure you put it in writing that you are voluntary terminating the agreement and not voluntary surrendering the vehicle. If you do not you will be hit with all payments due under the agreement.

[Gasdiver]

Re: VT of HP and Interest

You can VT the agreement at any time, you do not have to reach the 50% mark to exercise that right or be subjected to any balloon payment at the end

You will still be liable though for all payments up to the up to the 50% mark quoted on the agreement. (21 months of 42) That is handy if you cannot afford to run the car with tax and insurance. The finance company will not tell you that though

Make sure you put it in writing that you are voluntary terminating the agreement and not voluntary surrendering the vehicle. If you do not you will be hit with all payments due under the agreement.

Many thanks for your quick reply.

Are you saying I can VT at 21 months and not the 50% figure. That would be extremely helpful if it is the case?

Many thanks again.

[judgemental24]

Re: VT of HP and Interest

You can Voluntary terminate the agreement now and not wait for the 50% month mark

You will still have to make normal contractual monthly payments up to the 50% month mark though

You will not have to pay any balloon or option to purchase figures, only what is written on the agreement up to the half way point

If your agreement is for 42 months, 21 months will be the 50% mark

Written on the finance agreement will be the termination figure, amount needed to terminate at 50%

What does that say??

[Gasdiver]

Re: VT of HP and Interest

Judgemental24, I read you loud and clear! I fully understand and am amazed that these agreements are cloaked in such a manner.

Many thanks for your valuable input.