Handing Back to VWFS?
Discussion
Ok so after a bit of advice, my best mate is in dire straits and needs to get out of his Golf GTD, it’s on a PCP with 8 months to run, believe it was a 3 years deal.
He called up and asked to hand the car back and they told him he would have to pay the remaining 8 months worth of payments - I understood from various threads on here that as long as you had done 50% of the term you could hand back and walk away??
Can anyone give me any advice - have I misunderstood or is it not PCP you can do that on
Si
He called up and asked to hand the car back and they told him he would have to pay the remaining 8 months worth of payments - I understood from various threads on here that as long as you had done 50% of the term you could hand back and walk away??
Can anyone give me any advice - have I misunderstood or is it not PCP you can do that on
Si
Butter Face said:
It’s not 50% of the term, it’s 50% of the total payable.
You need to know the total payable on the agreement (including all payments, deposit, balloon and interest) half that and that’s what needs to be paid.
And generally this doesn’t happen until the last few months of the PCP - possibly not at all. You need to know the total payable on the agreement (including all payments, deposit, balloon and interest) half that and that’s what needs to be paid.
You can sell the car, but you’ll have to foot any shortfall to pay off the finance - or you do get to pocket the change if it’s worth more than what’s left.
brittas14 said:
Wouldn’t you have to sell it to a motor trader who then pays off the finance?
You can sell it to anyone as long as the finance is cleared. If private then the amount owed goes to vwfs then anything above that can be kept by the seller. Or any shortfall is paid by seller.
As above you need to know what the total amount financed was and divide it by 2 - when he's paid that he can VT.
For example if the total amount payable on the PCP agreement was £22,000 (car price - deposit + interest), he'd have to have paid back £11,000 before he could VT. Add up all the monthly payments and see where he is. It usually comes quite near the end of the term.
Alternatively try selling privately (or even WBAC) and see if he can cut a wee bit of profit.
For example if the total amount payable on the PCP agreement was £22,000 (car price - deposit + interest), he'd have to have paid back £11,000 before he could VT. Add up all the monthly payments and see where he is. It usually comes quite near the end of the term.
Alternatively try selling privately (or even WBAC) and see if he can cut a wee bit of profit.
brittas14 said:
ZX10R NIN said:
Get a full & final settlement figure from VWFS then put it up for sale you should clear the finance & have a little bit left so your friend can get a shed.
Wouldn’t you have to sell it to a motor trader who then pays off the finance?Get your friend to dig out his original financial paperwork as this should have the figure at which he can voluntary terminate (VT) his agreement, which as mentioned above is 50% of the total that has been financed.
My PCP was 4 years, but I could not VT until 3 years into my agreement as I wouldn't hit the 50% mark until this point. The exact amount was shown on my paperwork, so I calculated the number of monthly payments to hit this mark and then sent the below letter, changing to match my details.
The letter was sent recorded delivery to the finance company.
Dear Sir/Madam
Voluntary termination of agreement
Account No: xxxxxxxxxxxxxxxxxxxx
Car make/model/registration no:
I am writing to notify you that I am exercising my right to terminate the above agreement under Section 99 of the Consumer Credit Act 1974.
The vehicle is in good condition for its age and will be available for collection from "Address" on the "Provide some dates".
Please confirm receipt of this request by post and email to me
I look forward to hearing from you.
Yours faithfully
They confirmed within a few days by phone, and that the BCA would call to arrange inspection and pickup.
I gave them a month to sort a date for me, so there was no last minute rush.
The car is now sitting outside clean, with some fuel, and ready to be inspected and taken away in the morning.
Hope you friend gets on ok?
Steve
My PCP was 4 years, but I could not VT until 3 years into my agreement as I wouldn't hit the 50% mark until this point. The exact amount was shown on my paperwork, so I calculated the number of monthly payments to hit this mark and then sent the below letter, changing to match my details.
The letter was sent recorded delivery to the finance company.
Dear Sir/Madam
Voluntary termination of agreement
Account No: xxxxxxxxxxxxxxxxxxxx
Car make/model/registration no:
I am writing to notify you that I am exercising my right to terminate the above agreement under Section 99 of the Consumer Credit Act 1974.
The vehicle is in good condition for its age and will be available for collection from "Address" on the "Provide some dates".
Please confirm receipt of this request by post and email to me
I look forward to hearing from you.
Yours faithfully
They confirmed within a few days by phone, and that the BCA would call to arrange inspection and pickup.
I gave them a month to sort a date for me, so there was no last minute rush.
The car is now sitting outside clean, with some fuel, and ready to be inspected and taken away in the morning.
Hope you friend gets on ok?
Steve
This article provides an excellent guide to Voluntary Termination: https://www.moneyexpert.com/car-finance/voluntary-...
I VT’ed an Octavia vRS TDi a few years back - immaculate condition but had exceeded mileage and was itching to buy something else. VWFS did ask for excess mileage charges, but eventually they went away.
Probably not very financially sensible unless desperate to escape deal and/role you’re in a negative equity situation, and I’d probably avoid doing again unless I had to.
I VT’ed an Octavia vRS TDi a few years back - immaculate condition but had exceeded mileage and was itching to buy something else. VWFS did ask for excess mileage charges, but eventually they went away.
Probably not very financially sensible unless desperate to escape deal and/role you’re in a negative equity situation, and I’d probably avoid doing again unless I had to.
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