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Hi everyone, I could really do with some advice regarding a voluntary termination in relation to my HP agreement on my van.
I had taken out HP on a 64 plate van in July of 2015 over a 5yr agreement period. Since this time a change in my personal circumstances has left me not needing the van anymore and was looking to buy a car as I could save myself money and consider the van totally unnecessary now.
I know after doing research that as long as I pay half of the amount owed, I should be able to hand the vehicle back and walk away.
According to my calculations the amount financed was £11,469.75 and the amount owed is now £9,708.60. I made an initial payment of £387.99 followed by 19x instalments of £238.99 totalling £4,928.80.
50% of the amount financed is £5,734.87 therefore would I be correct in assuming that I have a short fall of £806.075 in order to get me to my 50%???
If this is correct, I am in a position to pay off the £806. I have some damage to the rear door which I am happy to get repaired prior to contacting the finance company and would I be right in thinking that on a HP agreement, the mileage wouldn't come into question (74K miles) as this only applies to a PCP agreement?
On the confirmation that the above is correct, would it be in my best interests in contacting the finance company in writing with a letter expressing my intentions as I have also heard through my research that as companies do not like VT , they may often drag their heels in finalising the deal? Also, in the event of this occurring, is there an acceptable time they must accept, collect and take ownership of the vehicle?
Again, it would appear that it has been advisable not to sign any additional paperwork that they may send as they may be tricking you into additional penalties and therefore the letter of VT should be enough.
I have never defaulted on making a payment and will continue to do so (that's what I am afraid of with the finance company dragging their heels in order to get further payments from me).
Having never been in this situation before, I really do appreciate any help and advice members could give me.
thanks,
I had taken out HP on a 64 plate van in July of 2015 over a 5yr agreement period. Since this time a change in my personal circumstances has left me not needing the van anymore and was looking to buy a car as I could save myself money and consider the van totally unnecessary now.
I know after doing research that as long as I pay half of the amount owed, I should be able to hand the vehicle back and walk away.
According to my calculations the amount financed was £11,469.75 and the amount owed is now £9,708.60. I made an initial payment of £387.99 followed by 19x instalments of £238.99 totalling £4,928.80.
50% of the amount financed is £5,734.87 therefore would I be correct in assuming that I have a short fall of £806.075 in order to get me to my 50%???
If this is correct, I am in a position to pay off the £806. I have some damage to the rear door which I am happy to get repaired prior to contacting the finance company and would I be right in thinking that on a HP agreement, the mileage wouldn't come into question (74K miles) as this only applies to a PCP agreement?
On the confirmation that the above is correct, would it be in my best interests in contacting the finance company in writing with a letter expressing my intentions as I have also heard through my research that as companies do not like VT , they may often drag their heels in finalising the deal? Also, in the event of this occurring, is there an acceptable time they must accept, collect and take ownership of the vehicle?
Again, it would appear that it has been advisable not to sign any additional paperwork that they may send as they may be tricking you into additional penalties and therefore the letter of VT should be enough.
I have never defaulted on making a payment and will continue to do so (that's what I am afraid of with the finance company dragging their heels in order to get further payments from me).
Having never been in this situation before, I really do appreciate any help and advice members could give me.
thanks,
