voluntary termination - car finance

[Vick]

Hi, I am new to Legal Beagles!

I am looking to voluntarily terminate my finance agreement. I am 2.5 years into a 4 year agreement. I have paid just over 50% of the price I paid for the car which I understood to be the right point to make the VT. However the finace company say I am £2,700 short because it's 50% of the total sum of finance (so price paid + the full interest (over £6K!) that would have been paid at the end of the 4 years. I am wanting to know if this is right?? Also we paid £1000 deposit which apparantly isn't added to my 30 monthly payments made so far so doesn't count towards the 50%.....is this right?
Final question is - I took out this finance agreement on this car when I changed a car (same make) where I now realise I was well over the 50% paid back but I paid the full outstanding amount on that car because they didn't advise me that a VT would be a better option - i.e hand back keys & start with new finance from scratch - does anyone know if there is any comeback on this - feels as though I was mis advised/mis sold?
Any advice welcome - this is a minefield!!

[R0b]

Sales people are not your legal advisors so there is no obligation for them to advise you that a VT would be a better option than paying in full. What makes you think that you can hold them liable for not telling you something you would have found out if you read the contract? I can tell you now that you have no basis of a claim at all on that so don't bother with that school of thought.

The finance company is right, it's the total credit plus interest plus any deposit contribution. Check the front of your agreement and you will see a box titled "Termination: Your Rights" and that figure is the amount you need to reach to extinguish your liability. Of course you can terminate before meeting that figure but you will be libale to make up the remaining balance.

Deposit contributions count towards the 50% mark because it is essentially an advance payment, so it would be £1,000 + number of instalments. It is possible for a deposit contribution could take someone over the 50% mark before any instalment is paid although this is the rare exception.

If you check my signature below my post you'll see a link for a guide to voluntary termination - I suggest you spend the time to read that which should give you everything you need to know about the process.

[Vick]

Sales people are not your legal advisors so there is no obligation for them to advise you that a VT would be a better option than paying in full. What makes you think that you can hold them liable for not telling you something you would have found out if you read the contract? I can tell you now that you have no basis of a claim at all on that so don't bother with that school of thought.

The finance company is right, it's the total credit plus interest plus any deposit contribution. Check the front of your agreement and you will see a box titled "Termination: Your Rights" and that figure is the amount you need to reach to extinguish your liability. Of course you can terminate before meeting that figure but you will be libale to make up the remaining balance.

Deposit contributions count towards the 50% mark because it is essentially an advance payment, so it would be £1,000 + number of instalments. It is possible for a deposit contribution could take someone over the 50% mark before any instalment is paid although this is the rare exception.

If you check my signature below my post you'll see a link for a guide to voluntary termination - I suggest you spend the time to read that which should give you everything you need to know about the process.

Thanks Rob, really helpful - life would be boring if we all knew everything I guess! I have learned my lesson & will be more diligent next time!