Voluntary termination of car finance

[Numanor]

Hi There, I would like to say "Hello" to everyone out there, and to see if anyone can help or advise me?
I have a PCP for 36 months with a well known finance company,( dark coloured prancing pony) and have been making my regular monthly payments uninterrupted. I paid an initial deposit, and have also made approx 32 payments to date, but would now like to VT the agreement and return the car to them, but I do not know if I will owe them any additional monies. I have already sent the car off to have minor repairs carried out in anticipation of returning it to them damage free.
I had sent a letter to them using a template,stating that I would like to VT my contract and to return the vehicle etc to them, and received a reply today which only offered me a Settlement figure and made no mention of any provision for me to return the car etc. Why have they not even made any mention of my option to return the car at the end of the agreement irrespective of my choosing to VT the agreement early?
I am not the sharpest tool in the box, but with only 4-5 months left to run on the PCP, I was under the impression that I could return the car and would have to pay them very little, given what I have paid them already. The have asked for approx £6500 to end the contract, or for me to continue making payments as before. In there own contract in the "Termination right" section they have quoted a figure of £6700.
What more can I do to persuade them to take the car back and to VT the agreement? Have I acted correctly or not? Please can anyone advise me on what to do next?
Thanks in advance.

[R0b]

Can you post up the letter you receive and redacted personal details? It sounds like you've acted in the correct way and that BH are trying to pull a fast one here.

[Numanor]

Hi Rob

Thank you for the links you provided. I had read similar articles prior to my sending a notice to Voluntary Terminate my agreement with the finance company.
I am a bit wary of posting personal details, as I am new to this forum and do not wish to breach any protocols regarding personal information. I do appreciate your comments, and I understand it may be difficult to provide advice as to what I can do next, without more accurate information.
If the finance company are only interested in giving me an early settlement figure, then where does that leave me?, and what would be my next course of action?
I had assumed that normally, I could either make the balloon payment at the end of the contract and keep the car, or just return the car with no further additional payments, which is what I am trying to do now, albeit 4-5 months before the contract is due to end.
All I want to do is a Voluntary Termination of the contract , and to return the car to them which will be in excellent condition, after the repairs are completed.
Having made 31 payments to date, surely there must be very little monies due to the finance company. Another payment is due in about 2 weeks time, which will then mean 32 payments will have been made.
Can anyone please point me in the right direction with regards to the above? Thanks again folks.

[R0b]

You are not going to breach anything if you redact any personal details but if you don't want to provide the letter then you will only get generic information.

Write back to BH and insist that you exercised your right to VT and make it a formal complaint at the same time. Ask them to explain why they have sent you an early settlement offer when your letter clearly doesn't indicate that.

If you've already given notice to terminate (assuming it was with immediate effect) then you don't need to make any further payments. Whether you choose to keep the payment method in place is entirely your choice, but you can't complain if the money is taken and then you want it back because that will be tough luck.

[Numanor]

img069.pdf img070.pdf Terminate a hire-purchase agreement (sole name).pdf

Hi Rob

Thanks again for your help. I attach some docs which may help. I do hope this is ok?
The first is the cover note for the agreement, the next my notice to VT, and the last is their reply.
Maybe you can shed some light on this? or may know of someone who can.
Appreciate it. Thanks.

[R0b]

None of those documents tell us what type of agreement you have. You may want to double check your agreement that it definitely say hire-purchase or PCP or conditional sale agreement otherwise it might be embarassing if you go back to BH and it turns out that it is none of those.

I did a quick google on "Ultimate Plus" but couldn't find anything.

Either way, if it is one of the above agreements, then you need to go back to them and file a complaint. Alternatively, you could give them 7 days to acknowledge and confirm acceptance of your termination letter otherwise you will consider them to be in repudiatory breach.

I owuld suggest you do some research on this forum because there's hundreds of cases just like yours. Nothing really changes except the wording of the letters but that's all. The more you get yourself up to speed the less guidance you need from me as I've already dished it out - see the VT guide in my signature if you've not read it already then that explains just about everything you need to know.

[Numanor]

Hi again Rob,

I will do as you have suggested, but I did find this buried in the paperwork. img071.pdf

[R0b]

So it sounds like a PCP agreement which is fine, BH seem to be in the wrong.

By the way you might want to redact your documents, they contain your personal information.

[Numanor]

Thanks a lot for your help Rob. This is my first time doing this kind of thing, so I am a bit of a novice.I really appreciate your advice.