VT letter start date

[electraglide1989]

Hi Rob,

I am about to use your template letter to VT my PCP with MiniFinance. I have 4 months to the end of a 4y PCP, so well over my 50% payments. The car has recently been serviced by Mini and my mileage is within the limits.
My question is in regards to the effective termination date. In your template you suggest "hereby give you notice that the agreement is terminated effective immediately from the date of this letter." Does this mean I should not use the car anymore from this date ? or can I still use it till the come to collect it ?
Thanks in advance for you help.

[R0b]

Re: VT letter start date

From a legal perspective, as soon as the agreement is terminated then the right to use the car would be lost unless you sought further permission from the lender.

Of course in reality the lender is unlikely to know if you have used the car in between the time of terminating and collection of the car although if you use it and damage it or have an accident then you will be liable for it.

If you want to continue using the car then you could alter the letter to say it will be terminated on x date although if one of the monthly instalments falls due in that period then you will have to pay for its once the agreement still remains effective until the date of termination.

Or you could use it without their permission and take the risk.


Hope that helps

[electraglide1989]

Re: VT letter start date

Thanks for your prompt reply!!!
Good point about the next monthly instalment, it is next week. I will avoid risks and leave the car on the drive until collection or agree to leave it at the nearest dealership in the next couple of days.

[R0b]

Re: VT letter start date

You only need to give Mini Finance notice in writing and given that the next instalment is next week I would suggest you send your notice by email and by post and get a proof of postage receipt from the post office.

Mini may argue that the instalment is due as they didn't read it until after that date or that you must claim Brunei payable by until the car is sold - those are common arguments from lenders which are not accurate.

And as always, be sure to take plenty of photographs both inside and out, I would also suggest you take photos of the service manual and any repairs carried out as well as the odometer as proof of mileage. It might seem overkill but my experience and others on here is that lenders try anything to recover any monies where they can.