Voluntary termination of car finance
Discussion
I have a PCP contract where the value of the car is £16k and finance outstanding is £19k. I want to change the car and as I have made more than 50% of the payments can hand the keys back with no more to pay. Is there any consequence of doing this? I am only exercising my rights under CCA so should be ok?
valiant said:
It's half way of the TOTAL outstanding balance. With PCP schemes that is usually near the end of the finance term.
Check your paperwork as they usually provide guidelines on what you have to pay back or give them a ring for a settlement figure.
£56 beyond the halfway point!Check your paperwork as they usually provide guidelines on what you have to pay back or give them a ring for a settlement figure.
SV8Predator said:
It certainly does not affect your credit history! You are merely following the 'terms and conditions' and ending the agreement in a correct manner.
They don't like it, but it's in the terms.
That's good to know. Car is not used more than 2k miles per year as we commute to work by train but didn't fancy losing 3k to get out of the agreement!They don't like it, but it's in the terms.
SV8Predator said:
It certainly does not affect your credit history! You are merely following the 'terms and conditions' and ending the agreement in a correct manner.
They don't like it, but it's in the terms.
It is in the terms but that's by the by. They don't like it, but it's in the terms.
It leaves a marker saying you have VT'd and lenders don't like this.
Put 2 and 2 together....
It's not a good marker to have.
SV8Predator said:
It certainly does not affect your credit history! You are merely following the 'terms and conditions' and ending the agreement in a correct manner.
They don't like it, but it's in the terms.
It is in the terms but that's by the by. They don't like it, but it's in the terms.
It leaves a marker saying you have VT'd and lenders don't like this.
Put 2 and 2 together....
It's not a good marker to have.
valiant said:
It's half way of the TOTAL outstanding balance. With PCP schemes that is usually near the end of the finance term.
Check your paperwork as they usually provide guidelines on what you have to pay back or give them a ring for a settlement figure.
Not in my experience, 50% point came at 30 months of a 48 month deal.Check your paperwork as they usually provide guidelines on what you have to pay back or give them a ring for a settlement figure.
Check for excess mileage rate, if its a bmw they seem pretty fair when it comes to wear and tear, and badly kerbed wheels etc will cost you though.
BE57 TOY said:
It is in the terms but that's by the by.
It leaves a marker saying you have VT'd and lenders don't like this.
Put 2 and 2 together....
It's not a good marker to have.
http://www.experian.co.uk/consumer/questions/askja...It leaves a marker saying you have VT'd and lenders don't like this.
Put 2 and 2 together....
It's not a good marker to have.
Mr2Mike said:
Companies must treat customers fairly under FSA rules. Surely penalising someone for exercising their legal rights doesn't sound like it. It may be recorded but they can't take that information into account.duckers26 said:
Companies must treat customers fairly under FSA rules. Surely penalising someone for exercising their legal rights doesn't sound like it. It may be recorded but they can't take that information into account.
They don't penalise anyone. They mark that the person has done a VT - which is true. McHaggis said:
SSBB said:
They only agree because they are forced to by legislation. Doesn't mean they have to like it.
I'm still confused that they then have the right to mark your record if it is by mutual consent.Also note, Section 100 of the CCA says:
"If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly."
You do have an obligation to have taken "reasonable care" of the car. They can pursue you for further payment if they believe your neglect has reduced the value of the car.
I'm not a lawyer, so all the above is only my understanding, and not first hand experience.
SSBB said:
Ultimately your credit record isn't some kind of record the government holds on you, it's a system run by private companies, although regulated by the FSA. Termination isn't by mutual consent, you "give notice" to the creditor.
Also note, Section 100 of the CCA says:
"If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly."
You do have an obligation to have taken "reasonable care" of the car. They can pursue you for further payment if they believe your neglect has reduced the value of the car.
I'm not a lawyer, so all the above is only my understanding, and not first hand experience.
Car has only done 6000 miles in 28 months so condition is good!Also note, Section 100 of the CCA says:
"If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly."
You do have an obligation to have taken "reasonable care" of the car. They can pursue you for further payment if they believe your neglect has reduced the value of the car.
I'm not a lawyer, so all the above is only my understanding, and not first hand experience.
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