Voluntary termination and road tax

[Guest]

Hi
about 6 weeks ago I terminated my PCP car contract through a voluntary termination. I had the letter from the car finance people saying it had all gone through, my payments would stop (which they have) and somebody would collect it.

The car was due to be picked up last week, but the coronavirus lockdown prevented this from happening. I’ve had a letter today from the DVLA today asking for my road tax. I can’t declare it SORN as it’s parked on the road, but don’t really want to pay the tax as it was meant to have been collected.

I wanted to check my rights before I contact the car company (as they are awkward at the best of times). Is the Road tax my responsibility still if the contract has been terminated, and if not do I need to do something with the reg cert to take my name off it?

[R0b]

Hi,

The registered keeper is legally responsible for getting the car taxed as and when is needed. Given that you terminated the PCP 6 weeks ago you must have known about the taxt situation or at least ought to have known, and if you've done nothing about it then that, I'm afraid, is your own fault.

You could try writing to the DVLA (suggest recorded delivery or equivalent) and explaining that the car was on a hire-purchase plan and the contract was terminated roughly 6 weeks ago - enclose your VT letter and copy of the lebder's acknowledgment - and say that they should contact the lender for the tax amount.

Of course the DVLA are not legally obliged since you are the registered keepe in which case you might have to pay it and learn from it if you encounter a similar situation in the future.

[ostell]

Pay it monthly by direct debit then you are in control, transfer the car to them online but warn them first.