VT just after 50% paid

[sue2904]

Hi

Just joined the forum after reading some really helpful information so thought i'd join and post!

I've paid just over the 50% mark on my PCP agreement with RCI Finance and we're looking to hand the car back. It is generally in good condition - a few scratches on the wheels and a dent in the door, I was thinking that it might be best to try and get that fixed before hand?

My main question is... I know that I want to be able to go and get another finance agreement soon - will doing the VT have an impact on that? I have read that it doesn't have a negative impact on your credit file but it does show. So is it best to apply for a new credit agreement and then VT The car?

Also i'v read about a template letter - how do I download a copy of that please?

Thanks in advance for your help.

[R0b]

Hi Sue,

A VT mark is unlikely to affect you obtaining finance for your next car, but some lenders may take that into account when deciding to offer you credit and/or the relevant interest rate. If you applied to RCI for finance again its possible they may consider you a risk and either reject your application or alternatively offer you a higher interest rate to reflect the risk that you might VT in the future.

I've done several VT's and none of which have affected me obtaining credit, though I've never used the same lender twice in a row.

Templates can be found using this link: http://legalbeagles.info/forums/foru...tter-templates

I also suggest you read up on this link too: http://legalbeagles.info/forums/foru...on-your-rights

[sue2904]

Hi

Thanks for your speedy response! and the links.

If I sent the letter today and they acknowledge it say tomorrow, when do I need to stop driving the car? Is it ok to drive it until it is collected or dropped off?

Thanks
Sue

[R0b]

When the agreement terminates you lose the right to use and drive the car so you would need to seek permission from RCI. If you get permission from them, then record the mileage before you continue to drive it (take a time stamped photo) in case they charge you excess mileage.

Alternatively, you can choose not to get permission and not drive the car but you will have then been using it without their permission so technically speaking they could make a claim against you but in reality they are unlikely to know unless they have a tracker on the vehicle and are able use the data to track when it was used.

In practice permission to use is generally given but even if permission is not given, there is usually no way of detecting if the car has been used unless, as above, they can track its movement or you give them the mileage of the car at the time of termination. Either way you still have a duty to look after it whilst it is in your possession.