Volkswagen commercial voluntary termination.

[boris8654]

Hi,
I would like to know what are my rights to voluntary terminate my Hire Purchase contract for my Volkswagen Transporter.
Terms and conditions of the contract says that: " Your right to terminate" "You pay us such sum as together with the total of the rentals you have already paid equals four fifths of the amount of £27546.60"
I have paid £13773.30 which is 50% of that sum.
Can I terminate my contract without any additional payments charged? Or can Volkswagen force me to pay rest up to 4/5 of the sum mentioned above?
Thank you for your respond.

B.

[R0b]

Hi Boris,

I think the title of your thread may hold the answer to your question.

VT rights under the Consumer Credit Act 1974 are reserved for consumers only, not businesses. However, I believe that if you are a sole trader then you fall within the definition of 'individual' under the Act and are treated as the same as a consumer for these purposes. So you should, have the right to VT and not rely on those commercial terms about 4/5 of payment.

Someone else asked a similar question albeit they were based in NI and I can't seem to find it on here.

[boris8654]

Hi Boris,

I think the title of your thread may hold the answer to your question.

VT rights under the Consumer Credit Act 1974 are reserved for consumers only, not businesses. However, I believe that if you are a sole trader then you fall within the definition of 'individual' under the Act and are treated as the same as a consumer for these purposes. So you should, have the right to VT and not rely on those commercial terms about 4/5 of payment.

Someone else asked a similar question albeit they were based in NI and I can't seem to find it on here.

Hi Rob,

Unfortunately I am not a sole trader but small LTD.
I need to find the way how to get rid of the car as that is no more needed and company can not afford pay £460 every month.
But thank you for your reply anyway.

[R0b]

I'm afraid you are out of luck, and it would appear that unless you have any other valid reason to terminate the contract early, you would have to comply with those terms.

You could try to contact VW and have a discussion as to what options may be available. One possible option could be to surrender the vehicle but you would be liable for the whole amount under the agreement but VW may agree to reduce the monthly instalments until the debt has been paid off.

Of course you should make sure that anything you agree should first be in writing and confirmed that it is agreed. You don't want to make assumptions or rely on anything verbally just in case VW decide to change their minds.