Confusion over VT 50% rule

[Red7]

Hi, new member here, apologies if clogging up the board, mods feel free to move somewhere suitable if so.

I purchased a new AUDI on a PCP October 2015 x 48 months

purchase price £38,484

deposit £8,137

Cash payment by me of £385

Credit £30,347

Final payment month 49 £15,888

I have been paying £414pm since Nov 2015 and was led to believe by the seller that in November 2017, I could VT this car as I would be 50% through the contract. However, upon reading these pages, I feel that I haven't had this explained properly to me, as by all accounts, I will have to pay half of the initial credit £30347 / 2 = £15,173 before I can VT, however by November 2017, I will only have paid 24 x £414 = £9,936 leaving a shortfall of £5,237.

Am I correct in thinking that if I want to VT this in November 2017, I will still have an outstanding balance of £5,237 to pay or can I walk away as I have made 50% of the monthly payments?

I returned a Ford a few years ago 50% through the term of the contract due to going to work abroad, however I hadn't made 50% of the payments at this time, just 50% of the term.

Any help would be really appreciated.

[R0b]

Re: Confusion over VT 50% rule

Hello,

It's not the initial credit, its the total amount payable (which includes the total charge for credit i.e. the interest) unless your reference to the credit your referring to is the total amount payable.

I would suggest you read the following link in particular the section 'What type of finance agreement do I have?' which gives you a better understanding of the type of agreement you have.

I suspect your Ford agreement would have been a hire purchase or conditional sale agreement not a PCP.

http://legalbeagles.info/forums/show...on-Your-rights

[Red7]

Re: Confusion over VT 50% rule

Hi R0b, many thanks for your quick reply, appreciated.

Ive just had another look at the contract and it states under Termination: your rights "they will be entitled to the return of the goods and to half the amount payable under this agreement that is £21,948.31"

Am I right in thinking that I can reduce the total of what I have paid so far (deposit, cash payment and 24 x monthly payments) from this total which would leave me with a bill of £3,490 to settle?

[R0b]

Re: Confusion over VT 50% rule

Yes that's correct, so any deposit plus the instalments to date deducted from the £21,948.31 would give you the outstanding liability.

[Red7]

Re: Confusion over VT 50% rule

Cheers R0b, you're a star mate

[Richb247]

Re: Confusion over VT 50% rule

Yes that's correct, so any deposit plus the instalments to date deducted from the £21,948.31 would give you the outstanding liability.

I Am thinking of doing this next week on my Ford Focus doe the value of the car come into consideration when working out the 50% repayment