Voluntary Termination?
Discussion
Dear all,
Just a speculative query concerning VT.
I'm 1/2 way though a HP agreement and have considered a VT. Spoke to Santander and they have said as long as the car is within the fair wear and tear guidelines with the BVRLA then I should have to pay no more.
HOWEVER, I queried the mileage limitation (the HP agreement I took out had no mileage restrictions) but apparently mileage is within the 'fair wear and tear' guidelines and at the discretion of the inspection team.
However, know one could or would tell me what counted as 'fair wear and tear' mileage.
I've covered over 50k in 2 years, obviously well above a normal 12k per annum, heard some horror stories of companies charging 14p per mile anything over what they consider 'fair wear and tear'!
In theory if I went ahead with the VT I would be charged £1000s in excess mileage charges.
Anyone had any experience of this?
Just a speculative query concerning VT.
I'm 1/2 way though a HP agreement and have considered a VT. Spoke to Santander and they have said as long as the car is within the fair wear and tear guidelines with the BVRLA then I should have to pay no more.
HOWEVER, I queried the mileage limitation (the HP agreement I took out had no mileage restrictions) but apparently mileage is within the 'fair wear and tear' guidelines and at the discretion of the inspection team.
However, know one could or would tell me what counted as 'fair wear and tear' mileage.
I've covered over 50k in 2 years, obviously well above a normal 12k per annum, heard some horror stories of companies charging 14p per mile anything over what they consider 'fair wear and tear'!
In theory if I went ahead with the VT I would be charged £1000s in excess mileage charges.
Anyone had any experience of this?
Surely you can only be charged excess miles if its in the contract.
Did they mean that the mileage dictates what they consider fair wear and tear.
Recently vt'd a bmw, paid nothing other than the excess miles (was a pcp with annual miles set in the contract along with the rate per mile fir the excess ones)
Did they mean that the mileage dictates what they consider fair wear and tear.
Recently vt'd a bmw, paid nothing other than the excess miles (was a pcp with annual miles set in the contract along with the rate per mile fir the excess ones)
Well, the reason I took out HP was that I wouldn't be tied into any mileage restrictions.
I looked into Motonovo HP and they said, and it was clearly stated, that if you VT you will be charged at 14p a mile for anything other 12,000 per annum you have covered. However, the agreement has now mileage restrictions.
To be honest, its not clear and can imagine lots of people getting shafted by it!
I looked into Motonovo HP and they said, and it was clearly stated, that if you VT you will be charged at 14p a mile for anything other 12,000 per annum you have covered. However, the agreement has now mileage restrictions.
To be honest, its not clear and can imagine lots of people getting shafted by it!
Ouch, I had to assume the finance companies would find some way of closing up the VT loop hole (as they see it) it did result in some pretty bad losses when I worked in the industry. We had some real wrecks returned back when most of us replied "voluntary what?!" when asked about it.
Pharoah said:
It will also show on your credit file that you have VT'd and so may affect lenders decision to lend to you again....
It "may" but remember its contractual, so cant be used against you.I recently vt'd a bmw with bmw finance, and bought another car on bmw finance, not even queried by them.
MidlandDan84 said:
Did you get any issues with mileage under fair wear and tear?
If you 'VT' a contract you wont be liable for the excess mile charge. The excess charge is if the car is returned to the finance house at contract end on a PCP.HP allows you to 'VT' the vehicle as soon as 50% of the total cost has been paid. This total cost includes deposit/part exchange. The figure is detailed in the contract under 'termination rights'
wargriff said:
If you 'VT' a contract you wont be liable for the excess mile charge. The excess charge is if the car is returned to the finance house at contract end on a PCP.
HP allows you to 'VT' the vehicle as soon as 50% of the total cost has been paid. This total cost includes deposit/part exchange. The figure is detailed in the contract under 'termination rights'
Indeed, that's what I thought.HP allows you to 'VT' the vehicle as soon as 50% of the total cost has been paid. This total cost includes deposit/part exchange. The figure is detailed in the contract under 'termination rights'
It is what mileage companies class as 'fair wear and tear' is the issue.
I've not done this myself - luckily when things got bad for me, my Porsche was worth a bit more than the finance owed - so once sold, I paid off the remaining debt.
However, a mate of mine did this with his car recently.
The rough value of it as it stood, looking on Autotrader and PH, was the rough value of the remaining finance owed. He'd crossed the 50% threshold by quite a bit, so according to his finance paperwork, he could hand it back.
Anyway, the bloke from the finance company tipped up, and immediately started picking holes in the vehicle - this damage / that damage (very minor stuff) the mileage, the condition of the carpets, everything...
He told my mate that the value of the vehicle was quite a bit under what was owed, and that the finance company would soon write to him after this to detail all the additional expenses that he'd found, and that my mate would have to pay, or risk court and execution etc.
My mate, now a little agitated after an hour of all this sucking of wair through teeth and much note-taking of the finance bloke, just said to him:
'Look mate, just take the bloody car away, I've had enough. It's worth what's owed on it, that's the end of the deal - and the reason you're picking it up is that I've lost my job, haven't got a pot to piss in, and if you try to spend weeks sending me bills, paperwork and bailiffs - you're wasting your time - you'll get nothing, I'm moving from this address next week, and you'll just throw good money after bad trying to chase me for random stuff that you've made up and are attempting to extort me for. I'm going inside now - see ya.'
He never heard another thing
However, a mate of mine did this with his car recently.
The rough value of it as it stood, looking on Autotrader and PH, was the rough value of the remaining finance owed. He'd crossed the 50% threshold by quite a bit, so according to his finance paperwork, he could hand it back.
Anyway, the bloke from the finance company tipped up, and immediately started picking holes in the vehicle - this damage / that damage (very minor stuff) the mileage, the condition of the carpets, everything...
He told my mate that the value of the vehicle was quite a bit under what was owed, and that the finance company would soon write to him after this to detail all the additional expenses that he'd found, and that my mate would have to pay, or risk court and execution etc.
My mate, now a little agitated after an hour of all this sucking of wair through teeth and much note-taking of the finance bloke, just said to him:
'Look mate, just take the bloody car away, I've had enough. It's worth what's owed on it, that's the end of the deal - and the reason you're picking it up is that I've lost my job, haven't got a pot to piss in, and if you try to spend weeks sending me bills, paperwork and bailiffs - you're wasting your time - you'll get nothing, I'm moving from this address next week, and you'll just throw good money after bad trying to chase me for random stuff that you've made up and are attempting to extort me for. I'm going inside now - see ya.'
He never heard another thing
snowdude2910 said:
mine has a missfire problem nobody seems to know how to fix can I just hand it back at the halfway point or does it need to be fully working?
I would get it fixed, if it is noticeable. Most of the guys that pick up the cars, just mark down damage for their own protection. So many cars are being VT'd that the hassle to bill people and chase up is just riddled with problems and cost..Ray Luxury-Yacht said:
I've not done this myself - luckily when things got bad for me, my Porsche was worth a bit more than the finance owed - so once sold, I paid off the remaining debt.
However, a mate of mine did this with his car recently.
The rough value of it as it stood, looking on Autotrader and PH, was the rough value of the remaining finance owed. He'd crossed the 50% threshold by quite a bit, so according to his finance paperwork, he could hand it back.
Anyway, the bloke from the finance company tipped up, and immediately started picking holes in the vehicle - this damage / that damage (very minor stuff) the mileage, the condition of the carpets, everything...
He told my mate that the value of the vehicle was quite a bit under what was owed, and that the finance company would soon write to him after this to detail all the additional expenses that he'd found, and that my mate would have to pay, or risk court and execution etc.
My mate, now a little agitated after an hour of all this sucking of wair through teeth and much note-taking of the finance bloke, just said to him:
'Look mate, just take the bloody car away, I've had enough. It's worth what's owed on it, that's the end of the deal - and the reason you're picking it up is that I've lost my job, haven't got a pot to piss in, and if you try to spend weeks sending me bills, paperwork and bailiffs - you're wasting your time - you'll get nothing, I'm moving from this address next week, and you'll just throw good money after bad trying to chase me for random stuff that you've made up and are attempting to extort me for. I'm going inside now - see ya.'
He never heard another thing
Unless there is clear excessive mileage above an agreed level in the contract or serious bodywork damage then I would expect the finance company to give up once perfunctory remonstrations had been made. As above,However, a mate of mine did this with his car recently.
The rough value of it as it stood, looking on Autotrader and PH, was the rough value of the remaining finance owed. He'd crossed the 50% threshold by quite a bit, so according to his finance paperwork, he could hand it back.
Anyway, the bloke from the finance company tipped up, and immediately started picking holes in the vehicle - this damage / that damage (very minor stuff) the mileage, the condition of the carpets, everything...
He told my mate that the value of the vehicle was quite a bit under what was owed, and that the finance company would soon write to him after this to detail all the additional expenses that he'd found, and that my mate would have to pay, or risk court and execution etc.
My mate, now a little agitated after an hour of all this sucking of wair through teeth and much note-taking of the finance bloke, just said to him:
'Look mate, just take the bloody car away, I've had enough. It's worth what's owed on it, that's the end of the deal - and the reason you're picking it up is that I've lost my job, haven't got a pot to piss in, and if you try to spend weeks sending me bills, paperwork and bailiffs - you're wasting your time - you'll get nothing, I'm moving from this address next week, and you'll just throw good money after bad trying to chase me for random stuff that you've made up and are attempting to extort me for. I'm going inside now - see ya.'
He never heard another thing
If this went to court the judges would need some convincing that a three year old car would be immaculate, Parking dings and such like are normal wear and tear. Cars with 30,000 miles on will have scratches and scrapes.
Excess mileage cannot be down to the judgement of the collector of the car. A limit would have to be written into the agreement to be legally enforceable.
I would not expect any finance company to pursue this UNLESS there is an agreement on limited mileage and this is exceeded. That would be worth a punt to the finance company. Clearly a car with substantial excess miles on would be worth significantly less. Hence the loss to the finance Co is provable.
Coming up for three years into a four year PCP on my wife's Mini Cooper. We are currently £2000 (!) in negative equity according to the latest figures given to me by my Mini dealer (he was trying to flog me another one). I am gobsmacked that the deal is so far 'astern of station', and it is never going to be worth more than the guaranteed value in 14 months time. This is the second Mini Cooper we have bought new, the first was traded after 21 months and I had equity in that one, not much but about £500. Just goes to show how the Mini novelty value has dissipated. Anyway, my intention is to VT at the three year point, when 50% of the total cost of the finance package is repaid. I hope that there is no mark on my credit history that makes it difficult to finance another car, but it seems crazy to keep it after this point - out of warranty and paying a further£3200 or so of finance on it.
As far as mileage is concerned, it only has 14000 miles on it, and the contract is for 32000 over 4 years - wonder if I will get a refund for 'unused' miles!
I am encouraged by some of the comments on this thread. She wants another Cooper, but I am put off....b
As far as mileage is concerned, it only has 14000 miles on it, and the contract is for 32000 over 4 years - wonder if I will get a refund for 'unused' miles!
I am encouraged by some of the comments on this thread. She wants another Cooper, but I am put off....b
Edited by mercGLowner on Saturday 18th August 20:31
mercGLowner said:
Coming up for three years into a four year PCP on my wife's Mini Cooper. We are currently £2000 (!) in negative equity according to the latest figures given to me by my Mini dealer (he was trying to flog me another one). I am gobsmacked that the deal is so far 'astern of station', and it is never going to be worth more than the guaranteed value in 14 months time. This is the second Mini Cooper we have bought new, the first was traded after 21 months and I had equity in that one, not much but about £500. Just goes to show how the Mini novelty value has dissipated. Anyway, my intention is to VT at the three year point, when 50% of the total cost of the finance package is repaid. I hope that there is no mark on my credit history that makes it difficult to finance another car, but it seems crazy to keep it after this point - out of warranty and paying a further£3200 or so of finance on it.
As far as mileage is concerned, it only has 14000 miles on it, and the contract is for 32000 over 4 years - wonder if I will get a refund for 'unused' miles!
I am encouraged by some of the comments on this thread. She wants another Cooper, but I am put off....b
For what its worth i have vt'd 2 bmw's bmw didnt bat an eyelid with finance for a 3rd time.As far as mileage is concerned, it only has 14000 miles on it, and the contract is for 32000 over 4 years - wonder if I will get a refund for 'unused' miles!
I am encouraged by some of the comments on this thread. She wants another Cooper, but I am put off....b
Edited by mercGLowner on Saturday 18th August 20:31
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