Help!!! Advice On Vt Help!!!

[robuck]

Hi All,

 

Urgent advice needed!!!

My sister in law purchased a car on HP in May 2006 with my brother as gauarantor. The stearing pump failed on the vehicle about 12 months ago and the car has just been sat on the drive as they could not afford the replacement parts or the labour. She continued her monthly payments as per the agreement. She has now paid over half of the amount owed but is in arrears of two months on her payments.

She is now looking to voluntarily terminate (VT) the agreement under the "halves and thirds" clause.

 

Your sister in law wont be able to VT the agreement because she is in arrears. The account will need to be brought up to date.

 

1. Does the car have to be in sound mechanical state to VT the agreement? i.e. does she need to have pump fixed.

 

Yes, the car has to be in a sound mechanical state and the vehicle has to be in reasonable condition for its age. This generaly means that it need to have no damage, have a valid MOT and have a full service history.

 

This of course depends on how old the car is.

 

The car you are describing above will be classed as a non runner.. Sat for 12 months, no MOT no Tax.

 

2. (a) Does it have to have a valid MOT to VT?

 

Yes. Some will accept 3 months, some will only take 12 months.

 

(b) If its VT without the above what would be the penalty if any?

 

You will have to accept the liability for the work needed to get the car into the condition above.

 

3. If she VT's will it have a detremental affect on my brothers credit file as he is the gauarantor on the agreement?

 

No, it will show as settled with the words VOLUNTARY TERMINATION on it.

 

Personally unless the car is less than 3 or 4 years old i doubt very much if they will agree to it in the condition you explained above.

 

maybe not what you wanted to hear, but answers your questions. :-|