Voluntary Termination finance - help please

[Jonesy1972]

Evening all. Ok, I have searched, but am looking for clarification if possible? Any help very much appreciated! So I have an Up on what I thought was a PCP (was an ex demo). One of the original quotes said PCP at the top of the page and then looking on the final documents it states HP with a final payment. So not sure if this makes a difference to me wanting to VT?

So the figures that I need to check are....

Cash Price of vehicle £10200
Less advance payment £1865.59
Amount of credit £8,334.41
Total amount payable £12,069.14

Termination: £6,034.57

So I am assuming (dangerous I know) that I add the payments I’ve made so far (28x£139.53=£3,906.84) to my advance payment (£1,865.59) which gives a total of £5,772.43. Leaving me short at the moment by £262.14?

Hopefully someone can say whether I have done this correctly or not?

[Jonesy1972]

Just to add, does anyone know how long the process takes?

Thanks, Jonesy

[GreatGranny]

You may get a more accurate and definitive answer from the finance company.

Just a thought.

[esxste]

You're correct. You can VT if deposit + payments made = Total Payable / 2


The agreement should have a bit about termination rights. You should read that carefully.

[Andy665]

You are correct in your calculations.

PCP is legally a HP agreement with a final payment - its simply a different repayment structure

[Jonesy1972]

That’s really helpful, guys. Thanks for your replies. Any idea on how long it takes? I cannot really manage without a car and am looking to lease a stock vehicle (my first lease). So I need to ensure I’m not left without a car for a couple of weeks.

[GreatGranny]

Would have thought you could agree a Termination date with the finance company when you know when your Lease car will be delivered.

Sourcing a lease vehicle from stock may take longer than organising the VT.

[Jonesy1972]

All useful info. Thanks very much.

[cay]

How much is the car worth?

If you sold it you might be able to pay off the finance and end up with a profit.

You will get a rebate of any future interest so the settlement figure will be less than the sum of your remaining payments.

[Lee540]

cay said:

How much is the car worth?

If you sold it you might be able to pay off the finance and end up with a profit.

You will get a rebate of any future interest so the settlement figure will be less than the sum of your remaining payments.

This, I did with my Audi A3, £5k outstanding but sold car privately for £7.5k.

Buyer rang up VWFS and paid off the finance with a debit card and gave me the difference.

[fourstardan]

Ring up finance company they'll tell you all.

You get refunded on outstanding interest too (I think).

[Wooda80]

Jonesy1972 said:

Hopefully someone can say whether I have done this correctly or not?

Your calculations are correct. You could pay the £262 to the finance company and arrange the VT immediately if you wish, or wait until another couple of payments have gone out to get you to the half.

Give the finance company a call and let them know what you want to do. They usually take a couple of weeks to come and collect the car and may want to send someone to check its condition first. If you want it gone sooner then talk to them and they may be able to help.

As others have said, before VT'ing make sure that you are not giving back a car that you have equity in. Try the online carbuying services and the dealer where you bought the car from and see what they will offer as a cash purchase.

[Jonesy1972]

Thanks all. I did try to part ex the car against an Up GTI, dealer offered 5k part ex price, but settlement figure is £6,000. The 5k he offered me was £350 below the GFV. I’ll have a look on autotrader, to see what the going rate for them is. As I said only problem is I cannot be without a car, so might get tricky!

[Jonesy1972]

Just looked and comparable cars are between £6.5k and £7k. So say I managed to get £500 out of it, it would still leave me with the problem of having no car, unless I arranged a lease first and then tried to sell the Up, but I guess then I’d have to insure 2 cars at the same time; probably on different policies, one with no NCB until the Up is sold and the NCB transferred? I’m just guessing at the last bit!