Voluntary Termination Welcome Finance

[hayley]

Hi all

I would like to end my hp agreement with Welcome Finance i have read the agreement and it says

You have the right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the goods and to half the amount payable under this agreement that is £5259.76. If you have already paid at least this amount plus any overdue installments and you have taken reasonable care of the goods you will not have to pay anymore

I am a bit confused as the amount i borrowed with interest was £9103.36 so half of that would be £4551.68. The other thing is i owe about two months arears would i have to pay them on top of the £5259.76 if i have already paid that amount off?

Many thanks

Hayley

[ReasonableRon]

The termination figure should represent half of the TOTAL amount payable under the contract. Any deposit you paid on the car is included as part of this.

Let's say, for example, you paid a £1000 deposit then this means the total amount payable under the agreement is the total amount of finance payable plus the £1000. The amount of deposit you have paid counts straight away towards your termination figure.

In answer to your second question - yes, you have to pay any arrears outstanding at the time of termination which means that even if you have paid the amount required to terminate already but you are currently 2 payments in arrears, you will need to pay the arrears.

Hope all that help a bit

[rippedoffagain]

There should be more figures on the agreement, referring to any extras you may have had. If there isn't, perhaps the person who wrote up the agreement did not calculate correctly.

You should only have to pay the £5259.76, ie you are paying £x arrears + the balance to 50%. Be careful, if you have missed a couple of payments, they may have added some charges, get a figure from them to make sure.

When you return the car make sure you have it in writing that you have terminated the agreement, and make sure they sign section 6 of the log book for you to return to DVLA.

[hayley]

Originally Posted by ReasonableRon

The termination figure should represent half of the TOTAL amount payable under the contract. Any deposit you paid on the car is included as part of this.

Let's say, for example, you paid a £1000 deposit then this means the total amount payable under the agreement is the total amount of finance payable plus the £1000. The amount of deposit you have paid counts straight away towards your termination figure.

In answer to your second question - yes, you have to pay any arrears outstanding at the time of termination which means that even if you have paid the amount required to terminate already but you are currently 2 payments in arrears, you will need to pay the arrears.

Hope all that help a bit

Thanks for your help, i am slightly confused though (it doesn't take much lol)

The car was originally £7000, we put our old car as a deposit which was £2000 so we had to finance £5000, so do you mean it would be half of £11,103.36?

Sorry to be a pain

[sequenci]

Hello there,

This fact-sheet is great for HP

National Debtline England & Wales | Debt Advice | Factsheet 16 How To Deal With Hire Purchase Debt

[ReasonableRon]

Can you confirm the number and amount of the monthly instalments on the agreement and whether there are any other fees payable outside of these instalments. Please ignore any payments towards nay other insurance products - these cannot be included in the calculation of the termination figure.

You are correct in thinking of how the termination figure is calculated, but it still does not seem to add up. Don't forget, however, that the £2000 deposit also counts toerwards your payments so the chances are you have already paid way over the amount needed.

Any chance of posting your (anonymised) agreement up here for me to look at?

[hayley]

Originally Posted by ReasonableRon

Can you confirm the number and amount of the monthly instalments on the agreement and whether there are any other fees payable outside of these instalments. Please ignore any payments towards nay other insurance products - these cannot be included in the calculation of the termination figure.

You are correct in thinking of how the termination figure is calculated, but it still does not seem to add up. Don't forget, however, that the £2000 deposit also counts toerwards your payments so the chances are you have already paid way over the amount needed.

Any chance of posting your (anonymised) agreement up here for me to look at?

Hi again

Thanks for your help with this it is much appreciated, the amount i pay each month is £187.57 and it is over 48 months, i will upload the agreement now.

Thanks again

[rippedoffagain]

Originally Posted by ReasonableRon

Can you confirm the number and amount of the monthly instalments on the agreement and whether there are any other fees payable outside of these instalments. Please ignore any payments towards nay other insurance products - these cannot be included in the calculation of the termination figure.

You are correct in thinking of how the termination figure is calculated, but it still does not seem to add up. Don't forget, however, that the £2000 deposit also counts toerwards your payments so the chances are you have already paid way over the amount needed.

Any chance of posting your (anonymised) agreement up here for me to look at?

Yes it does, because the payments made will be allocated proportionately to HP payments and any extras.

[hayley]

[ReasonableRon]

Originally Posted by rippedoffagain

Yes it does, because the payments made will be allocated proportionately to HP payments and any extras.

No it doesn't - I meant from what I said that if there are insurance products on the agreement the that element of the monthly repayments do not count towards the termination figure.

Hayley - thanks for posting the agreement - although confusing at first if you break it down it is quite straightforward. Remember - only the bits that apply to the car finance and not the insurances count towards the termination figure - so..............

Cash Depost £2000
Amount of finance - £5000
Acceptance fee - £195
Charge for credit - £3324.52
Total Payable - £10519.52
50% of this figure = £5259.76.

Now - of your monthly payment of £187.57, only £177.49 is going towards your termination figure. The other £10.08 is paying for the GAP insurance (£295 premium + £188.84 interest = £483.84 / 48 = £10.0.

Don't forget though, that the £2000 deposit you paid counts fully towards your termination figure total.

You can disregard the Option Fee in any of the above because this is only payable if you exercise your option to own the car at the end of the agreement, which if you are terminating you obviously won't be doing.

Hopefully this has made things a bit clearer for you. I must admint - Welcome's agreement is terribly unclear because it is combining an agreement for HP on the car with an agreement for the repayment of an insurance premium into one document.

[hayley]

Originally Posted by ReasonableRon

No it doesn't - I meant from what I said that if there are insurance products on the agreement the that element of the monthly repayments do not count towards the termination figure.

Hayley - thanks for posting the agreement - although confusing at first if you break it down it is quite straightforward. Remember - only the bits that apply to the car finance and not the insurances count towards the termination figure - so..............

Cash Depost £2000
Amount of finance - £5000
Acceptance fee - £195
Charge for credit - £3324.52
Total Payable - £10519.52
50% of this figure = £5259.76.

Now - of your monthly payment of £187.57, only £177.49 is going towards your termination figure. The other £10.08 is paying for the GAP insurance (£295 premium + £188.84 interest = £483.84 / 48 = £10.0.

Don't forget though, that the £2000 deposit you paid counts fully towards your termination figure total.

You can disregard the Option Fee in any of the above because this is only payable if you exercise your option to own the car at the end of the agreement, which if you are terminating you obviously won't be doing.

Hopefully this has made things a bit clearer for you. I must admint - Welcome's agreement is terribly unclear because it is combining an agreement for HP on the car with an agreement for the repayment of an insurance premium into one document.

Thank you soooo much, i will send a letter to them tommorow to start the ball rolling, i just hope i have made enough payments, i think i have made about 18 payments so will probably be a couple of hundred short be i will wait and see, no doubt i will be in touch shortly because nothing EVER runs smothly with Welcome lol.

Thanks again

[ReasonableRon]

If you have made 18 payments then that is £177.48 x 18 = £3194.82 - plus your £2000 deposit = £5194.82 - you are only £64.94 short.

Don't forget you will need to pay any arrears as well - if you pay these now that will also take care of the £64.94

They will then probably expect you to continue with the part of the agreement for the GAP insurance or come to some other arrangement.

Might also be worth getting the car checked over before it goes back so you have got something to fall back on if they try and come back to you with a bill for 'repairs'.

[xan]

I used to work for a car finance company be careful you do not have an excess Millage clause as this can be nasty. Also get the vehicle checked over if you can by the RAC or AA for damages as they can sting you for this once the vehicle is returned often many months later as with the XSM. It is best to get everything regarding possible damages and excess millage in writting before you go ahead with the VT.