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Hi, this is a bit unusual I think.


I bought a Zafira for £3000 on finance from first response finance 2 years ago. I was also sold gap insurance and a service agreement. I have never missed a payment and I get statements from the finance company to show this. I have made approximately 47 payments of £153.


I am disabled and was awarded the higher rate of Disability Living Allowance which I'm currently using to pay for the car. However, my disability is making this manual transmission car increasingly more difficult to use and I am thinking of applying for a Motability car with automatic transmission.


If I were to Voluntarily Terminate my finance agreement and return the car will I be liable for any shortfall on the remaining balance and what the car fetches at auction? I paid a lot for the car from a dealer and it's value now would only be around £800 I imagine. I have paid well over half the contract at a large APR of around 30%. There will be at least £2000 left in payments to make as there is a year left on the agreement.


Finally, the service record isn't up to date. I have had the car serviced but they were mobile and never stamped the book. Is the service record essential? The MOT expires end of May, does the car have to be in MOT for any length of time?


Thanks for any help.



Edited by eddie864
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I called the finance company - First Response Finance, who after hearing why I wish to VT the agreement sounded awfully reasonable. The car must not have any major faults or have serious cosmetic issues. It seems there is no shortfall liability on the balance of the agreement. But I have to pay a fee of £149 to cover their initial insurance costs on me. With 11 months to run on the agreement they want that paid before I can VT the car. Once the agreement is VT'd they will arrange someone to call me to arrange collection.


Is this insurance real or just a scheme?

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You must vt under s99/100 cca1974. Do not sign any of their forms, or agree to pay anything. The car has just to be in reasonable condition for its age. As you have paid in excess of 50%, with no arrears there will be nothing to pay.Send them the following letter, they MUST action your request, you should endeavour to be present at the vehicle inspection---




Account No: (xxxxxxx)

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the consumer credit act1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination


I understand that I shall be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974. As I have paid more than the amount calculated under the formula in Section 100 the amount due is zero.


The above agreement will be terminated 14 days from the date of this notice.


Please send me details of how the vehicle can be returned to you.


You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.

Please confirm receipt of this request in writing within 7 days of receipt.-Yours etc...







Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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  • 8 months later...

It might be a good idea to get a pile of pics of the car Eddie taken from all around and inside if possible. Always better to be safe than sorry.

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