Voluntary Termination

[Leo1]

When terminating HP agreements, do you include the interest charge in the total amount payable?

ie, I want to end my car HP agreement and I am calculating the total amount I have paid so far (to check if I have paid 50%) but I am unsure if it is 50% of the actual amount borrowed (£4750) or 50% of the amount including interest (£5860).

[steveoram1]

It is 50% of the TOTAL amount payable under the agreement and also includes any deposit. You can find the exact figure in the termination clause on your h.p. contract. Add up what you have paid plus any deposit. If you are a little bit short of the amount required put a cheque in with your termination letter. One thing to watch out for - add-on products such as GAP or CPI are usually done on a separate CREDIT agreement i.e. not HP and will still have to be paid for.

[MondeoST24]

Does anyone know the ins and outs of returning a vehicle using this clause. What section of the CCA covers it?

The finance company i'm planning to VT with has imposed the following conditions, do any of them lawfully apply?

1. I must make an appointment to return the vehicle to the finance company (can I not return to the supplying dealer?)
2. Appointments are only availible on tuesdays (are they within thier rights to specify this?)
3. Appointments will take no less than 2 hours
4. The vehicle must be taxed and MOT'd (was not taxed when I bought it)

[petedoyle]

hi mate, not sure the answers to all your questions, but i recently VT'd my car after been 50% of the way through. your best bet is to call up the HP comonay you got the finace with and ask them how far your off being 50% of the way there?

i got my car from VW finance, and they sent me a letter form their 'agent' who came to my house to collect my car. they arranged a date and time that suited me and i did a quick 'handover'. it took less than 5 mins. signed the forms and away they went. i made sure i took my tax disc out though, and i informed them i was doign this, as there was 6 months left.(got my refund from DVLA too!) the agent who was collecting the car was ok with this and he had trade plates with him so was covered. i guess it differs from company to company. but my experience in this was fairly pain free and easy to deal with.

[westbrom]

Hi Guys, i am just about to write to my finanxce company to ask for a vt, after hearing all these weird stories, i am not looking forward to the response.

[TracyTangerine]

Hi there,

I am about to try and terminate my HP contract for my car with DaimlerChrysler under the 50% rule, but am a bit nervous about what invoking the VT/Section 99 of the Consumer Credit Act will do to my credit rating.

I've read some posts where people say ending a finance agreement this way affected their rating and even got them turned down for mortgages 7 years later..!

Help?

Thanks in advance, Tracy

[Conniff]

Originally Posted by MondeoST24

Does anyone know the ins and outs of returning a vehicle using this clause. What section of the CCA covers it?

The finance company i'm planning to VT with has imposed the following conditions, do any of them lawfully apply?

1. I must make an appointment to return the vehicle to the finance company (can I not return to the supplying dealer?)
2. Appointments are only availible on tuesdays (are they within thier rights to specify this?)
3. Appointments will take no less than 2 hours
4. The vehicle must be taxed and MOT'd (was not taxed when I bought it)

As the 'Tax' was not part of the HP deal then when you deliver the car remove the disc from the window.
Make sure the log book is signed properly and that you keep your bit to send to the DVLA, and send it to them by recorded delivery.

[chimurenga]

I got a car from welcome finance, on HP...i'm 1.5 years into the conract and now have a company car which is cheaper, i dont want the welcome finance car anymore...what do ido?

[buffyoo7]

hi should i phone them or write to vt my car have paid over 50% thanks buffy

its with welcome finance

[john4janie]

Hope someone can advise mea little on voluntary termination. I bought a car via Black Horse Finance 3.5 years ago. Agreement due to complete in December (ish) this means I have obviously paid over 50%.
I have several questions on this issue that I hope somebody has the answers to.

Firstly a couple of years ago I lost my job. Black Horse agreed to two reduced payments and sticking the remainder onto the end of the term. After that I reverted to normal payments and apart from the extra added onto the end of the term am completely up to date. Would this affect my ability to VT?

I believe that VT means that the company effectively get 50% of the debt paid plus return of the car. As I have paid around 75% of the debt would I get anything back?

Does doing this affect my credit rating?

Hope someone can answer my queries

Thanks in advance

[john4janie]

sorry submitted twice by mistake