Car finance.. voluntary termination

[Liam158]

Hello all, first time poster.

My post is in relation to voluntary termination of car car finance.
After a brief phone call today, I have been told will have to pay the difference in the valve of my car and what I owe.
I was under the impression if I have paid 50% or over I was able to hand the car back and I wouldn't owe anything?
Any help on this would be much appreciated

Thanks,
Liam

[ostell]

Re: Car finance.. voluntary termination

What type of agreement is it? It may not be a suitable agreement. There is another form of ending the agreement that leaves you liable for the difference.

What does your agreement say on the matter?

[Liam158]

Re: Car finance.. voluntary termination

hello, thanks for your reply.

I have just found my agreement it says...

TERMINATION: YOUR RIGHTS.

you have the right to end this agreement. to do so, you should write to the person you make payments to. they will be entitled to the return of the goods and to half the total amount pay able that is £*****. if you have already paid this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more.

now that is not what the woman said on the phone. she said I would have to pay the difference of what I owe and what they sell the car for in the auction.

the term was 60 months and I have paid 32 months which is over half.

what would my next step be? should I ring the finance company back up and tell them what is says in my agreement and ask why I have been told something different?

[ostell]

Re: Car finance.. voluntary termination

The next step would be to send a letter to the company terminating the agreement, as long as you have paid half. The amount should be in the agreement. There is a template letter somewhere on the forum for this. Others may now exactly were it is.
The agreement is terminated when they receive the letter an then they have to make arrangements to examine the car and pick it up.

Look at other thread about VT on the forum.

Wait for others to comment.

[Liam158]

Re: Car finance.. voluntary termination

Thanks, i have just sent them an email 30 mins ago using them template i found on the site. many thanks for your reply.

[R0b]

Re: Car finance.. voluntary termination

You don't need to pay the difference in value of the car that is misleading and fraudulent. you should report this to Tradinng Standards about the lender and their tactics.

When you VT you are liable for 50% of the total amount payable. You are also required to take reasonable car of the car taking into account its age and and condition at the time it was in your possession. If you fail to take reasonable care (the onus is on the lender to prove) then you have to pay them compensation

[Liam158]

Re: Car finance.. voluntary termination

I was quite confident i didn't have to pay the difference but i didn't have the agreement to hand when making the phone call so i didn't argue with the woman. she also stated that i would have to pay £150 for the car to be collected or drop the car off in Yorkshire (60-70 miles away). is this correct? From reading through a few of the threads i assume its up to close brothers to collect the car at their own cost as i have paid over 50% (my share of liability).

I believe i have taken reasonable car of the car, i have serviced it every year, not had any bumps or scrapes and have always put Top name tyres and brakes on to the car. the only thing i have changed are the wing mirrors. They got kicked off late at night out side my house along with a few other cars. the only replacements i could find quick enough were black though previously they were white. would this be a problem do you think?

Thanks for all the replys.

[seduraed]

Re: Car finance.. voluntary termination

before you do the voluntary termination check whether you have been sold PPI or gap insurance. The reason I ask is that there is a sneaky trick that some finance companies use. They put gap and PPI into the monthly payment so that what you are paying doesn't all go towards the car and you get left with a shortfall.

[Liam158]

Re: Car finance.. voluntary termination

Hello all,

Thanks for your posts.

Got a call from an auction house today about picking up my car. Is it normal for car insurance companies to instruct auction house to do this? I only ask as when I first contacted them, they said they would sell it through action and I would pay the difference.

Since then I have emailed them to terminate my agreement using the template found on this site.

I haven't recieved an email back from them all I've had is a call from the auction company.

Would it be best to ring them up to make sure they have recieved my email and to ensure I'm only liable for 50%?

Thanks for any reply

[R0b]

Re: Car finance.. voluntary termination

It is common for them to instruct auction, as that's the fastest way to sell the car. You are not liable for the difference between the value and what its worth

[Swiftyboy]

Re: Car finance.. voluntary termination

Is it correct that the finance company are liable to arrange collection of the car? They keep telling me that i need to sign a form agreeing that im liable for any damage or excess wear and tear costs, and i would then need to arrange myself to deliver the car to a local Manheim Auction Site?

[R0b]

Re: Car finance.. voluntary termination

You are not legally obliged to sign any documentation, they are trying to make you waive your limited liability, though they can claim for damage beyond reasonable wear and tear however they need to prove it was caused by you whilst the car in your possession and that it was beyond wear and tear.

You can offer gratuitously to return the car to an auction site but again not legally obliged. If you read your contract under the heading "Termination: Your Rights" it clearly sets out your liability.

[Swiftyboy]

Re: Car finance.. voluntary termination

Thanks Rob. They are obviously trying to use delaying tactics. I sent them my intention to VT in November. I had paid the last installment taking me over 50% of the total amount. They are now saying that i have defaulted on two months payments for December and January, and wont proceed until they have been paid! They say that the fact that the car is still in my posesion, means i have to still pay for the 2 months since i informed of my intention to VT! Am i right in thinking i should definately NOT pay thse two months payments, and that i should insist that they arrange collection of the car? THANK YOU for your help

[R0b]

Re: Car finance.. voluntary termination

Do you have proof of the VT notice in November? had you chased it up at any point from giving notice?

If you have given notice properly in writing, then you do not owe the 2 months. If they choose to ignore your letter that is their choice, not yours but I would check your credit file to see if they have applied any defaults as it is quite common to do so. Again they can't refuse to accept termination because you allegedly owe the two months, you are entitled to terminate regardless.

You can insist that they collect the car as you are not required under the CCA to return it to them, only make it available for them. Any term which says otherwise is void and unenforceable.

You could turn up the heat and send them a letter/email with the below, which you are legally entitled to do. I suspect at that point they may come and collect the car. If the car isn't parked on your drive then you can remove that part of the sentence in brackets in the first paragraph.

Make sure to date the letter too

Dear Sir

NOTICE OF INTENTION TO SELL VEHICLE UNDER THE TORTS (INTERFERENCE WITH GOODS) ACT 1977

Agreement number:
Vehicle Registration:

I writing in in relation with the above matter and in connection with giving notice to voluntarily terminate my hire purchase agreement. [Your vehicle is currently parked on my drive and] despite a number of requests to arrange collection, you have so far refused to do anything about it. [Your vehicle is no longer authorised to remain on my property and continued refusal to remove it will constitute trespass.] You will be aware that upon giving my notice to terminate, a reasonable was given time to collect the vehicle however you have so far refused to do so. Although there is a dispute as regards to the condition of the vehicle, this does not negate your obligation to remove it from my property.

In accordance with section 12 of the above Act, this letter is intended to give notice that unless the vehicle is collected by [28 DAYS FROM DATE OF LETTER] 2016, the vehicle will be deemed as abandoned and arrangements shall be made for it to be sold at the nearest auction, and no longer will I be liable for any losses suffered by you. I am rightfully entitled to deduct any costs associated with the sale of the vehicle including storage costs, in which case, a charge of £10 per day shall be levied (beginning on the day after this letter) until the vehicle is removed and sold. Once the vehicle has been sold, I will contact you further to arrange for the remaining proceeds to be transferred to a bank account of your choosing.

The vehicle is available for collection from my address at the head of this letter and I would suggest that you contact me on [NUMBER] to arrange a suitable time.

I look forward to hearing from you by [DATE].

[Swiftyboy]

Re: Car finance.. voluntary termination

Thanks very much for your help Rob