Motorloan Plus Voluntary Termination

[xmeganblock]

Hi,

I was hoping to get a bit of advise as my trust in finance companies/car dealerships has definitely been tested!

I was made aware of ‘voluntary termination’ by a colleague of mine upon me complaining about how much I pay for a 7 year Audi A1 (£350 pm!!). I did a bit of digging to learn I had indeed paid over 50% of the total amount payable which was around £22,000. I’m in my last year of my agreement.

I have sent a VT letter (using a template I found on here - thank you!) and the response I got back was very disappointing to say the least. Apparently i’m not in a PCP agreement as I originally thought and I believe sold but instead a Motorloan Plus agreement. According to the finance company this means VT is not an option. My only option is to either settle the agreement for approx £8,000 or see it out until the end.

Basically; I’d just like to know if this is correct as being naive is what got me into this agreement in the first place!

Would appreciate any advice at all.

Thanks!

Meg

[R0b]

Hello

Without seeing a copy of the agreement and its terms and conditions, it's difficult to tell you what type of agreement you actually have. If the finance co. is telling you that voluntary termination is not an option it might be that the contract is a some kind of fixed sum loan which is similar to a bank loan and the ownership of the car belongs to you.

If you can provide a copy of the contract by uploading it on here along with its terms I will check for you - make sure any personal info has been redacted.

[xmeganblock]

Hello

Without seeing a copy of the agreement and its terms and conditions, it's difficult to tell you what type of agreement you actually have. If the finance co. is telling you that voluntary termination is not an option it might be that the contract is a some kind of fixed sum loan which is similar to a bank loan and the ownership of the car belongs to you.

If you can provide a copy of the contract by uploading it on here along with its terms I will check for you - make sure any personal info has been redacted.

Thanks so much Rob - so sorry I've only just seen this response now. So frustrating as I feel like I've just been had off with the whole contract.Verbally they said PCP but looking at the contract it doesn't say PCP once! My fault for not seeing it but in all honesty I didn't know what I was looking at, I was just trusting what they where saying - rookie mistake! I've attached a copy of the contract, if you could have a look at it that would be very much appreciated.

Many thanks,

Meg

[R0b]

Yeah, that's definitely a fixed sum loan. Did you receive any other paperwork that indicated it was a PCP?

You could make a formal complaint to the finance company, and then take it up to the Financial Ombudsman. There have been a couple of cases where customers were told it was a PCP only to find out it was a different type of agreement but not actually informed it had changed. That said, they normally have some evidence that they were told this. If you don't have anything then you might struggle but worth a try anyway since this route is free.

OTherwise the car belongs to you and you could sell it and try to pay off the loan but that's up to you.