Hi all,

Im just after some advice….

I am currently in a IVA and when it was accepted allowances were made for my car payment to black horse.

To cut a long story short, things have changed rapidly and my income has stayed the same, well it’s actually due to go down and my expenditure is going to rise. This means that I can no longer afford the vehicle that the allowance was made for.

Im ok with that, My dad is going to gift me an old car to be able to run, and on completing my income and expenditure form, if I get rid of the current PCP vehicle then I can still afford to live etc and afford my payment to my IVA.

I have spoke to my IP and they have said that I can terminate the agreement with BH and the negative debt will be passed on to my IVA as it was taken out before the IVA was accepted.

(So I get all that)

However……

I have spoke to BH over the last couple of days and they have told me that I must write a letter Voluntary Surrendering the vehicle, drive it to an auction house and they will pass the liabilities to my IVA.

BUT.

The figure is massive!

I purchased a car on a PCP plan for £31,650.98 with zero deposit

The total I would have to pay would be £38,207.62 (including balloon)

My monthly payments are 47 payments of £455.46 followed by a final payment of £16,801.00

I have currently been in the agreement for 12 months (again circumstances changed quickly due to no fault of my own) So that is £5465.52 I have paid.

My current settlement on the Vehicle is £28,846.49

The vehicle is worth currently £24,000ish trade value.

They have said I need to Voluntary Surrender the car and my liability is £14093.75 which will be passed on to the IVA.

BUT how is this if my settlement is £28,846.49, shouldn’t it be closer to £4846.49?

Is this the same as a Voluntary Termination? or is that more expensive/cheaper?

Im just a bit stumped how my settlement can be 29k and they get 24k back and still want the remaining settlement including interest when I no longer pay monthly or have the vehicle?

I need to get this sorted, as my insurance for the car is due in a week and I do not want to/can afford to insure it.

Please advise and thank you in advance

Also just to add, as this might change things quite a bit, I received a letter from BH when I did my IVA saying that they intend to terminate my agreement on 27th March 2018 under section 76(1) of the consumer credit act 1974 as I had made a application for a voluntary arrangement.

Nope you can VT

Never ever vs!!

Use the letter here

https://www.consumeractiongroup.co.uk/forum/showthread.php?484734-VT-Car-with-Advantage-finance-**SUCCESS**

so i van still VT even though they have sent me the:

Notice is served under section 76(1) of the consumer credit act 1974 agreement letter?

I would put a picture up but i don't know how, sorry

oh and how do i work the amounts out to fill in the blanks? Sorry to be a pain.

Read upload

think ive done it?

Landrover letter..pdf

So that's a termination notice?

Have they sent a default notice?

£38k!! Is it gold plated

No they haven't sent me a default notice, as ive been keeping up payments.

It was on a PCP so all going well (as many years previous) i have just swapped at the end of the agreement so never had to pay the whole amount.

So to me it wasn't 38k but only a monthly charge of 455.

I know this still seems a lot but there is no MOT and its warranted etc and ive had previous HP for 10K costing £200pm and ive had to pay all that out myself so this (and to drive something quite nice) was a good option (at the time)

you MUST VT ONLY.

read this thread its all there

https://www.consumeractiongroup.co.uk/forum/showthread.php?485806-Trax-Motor-Finance-Voluntary-Termination-being-obstructive&p=5110308#post5110308

How do I work out the section 100 figure? Is it the same as the one they give you to surrender?

no

should be on the agreement?

Right....

In the Termination:- Your rights

It says, I have the right to end the agreement and return the goods. They will be entitled to half the total amount payable under this agreement that is £19,103.81.

So I'm guessing the figure i need to put is £19,103.81 - £4554.60 (already paid) = £14,549.21.

However,

On a voluntary surrender BH are saying the figure is £14,093.75

I really don't get this...... How is a Voluntary Termination better if its going to cost more?

Im sorry to be a pain and appear thick, but i really don't get it.

that is very unusual

vs it usually ALL the money outstanding minus what they get at auction for the car.

VT is usually a max of 50% of the signed agreement

have you still got the agreement?

where are you getting £14,093.75 from

That’s what Black horse said on the phone.

Also that figure plus my next monthly payment (if I was to make it) would equal the halfway amount that is of course including the payments I’ve already made.

I think you are going to have to get clarification about this on Monday

record your call!

Rang again today and they are saying that I owe half the agreement if I VS and and the same figure if I VT.

I asked about my settlement being nearly 29k and if they get 24k at auction I should only owe 5k, they said no that’s not how it works and they will still want payments up to 50% of the total igreement price including interest (38k)

Obviously I’m only 1 year into a 4 year agreement so I’m not sure if a VT or VS makes much financial difference the only difference being on my credit rating. (Although I could be wrong)

(Approx figures on scenarios below)

So they have said I can take the car to local BCA and get a receipt, send a letter/email to VS and say I know the liability is 14k and they will send me the liability for 14k to my IVA people

Or

Send a letter/email to voluntary terminate with my figure being 14.5k and they will collect the car and no doubt auction it anyway....

Unless I’m massively missing something is there that much difference?

I’m sorry to appear so thick, all I know is my full figure including interest for the car was 38k. The figure excluding interest is 31k

My payments were £455 a month for 47 months (48th month was balloon payment or return the car) and the GFV was £16800

I really can't get my head around it!

Ive attached a copy of the finance agreement

Finance agreement .pdf

good that clarifies it

your top part of post 12 is correct go do that.

VT ONLY