It is a statutory right and as such, it can not be restricted or excluded within the terms and conditions of any car finance deal. At the very least, youll be charged higher interest due to being a high-risk borrower. As long as there is no damage to the car and you pay back 50% of the Total Amount Payable, then there should be nothing left for you to pay. The finance companies dont like this they would make more money if you kept paying them. There is no excessive damage (no more than normal wear and tear); You agree to repay 50% of the Total Amount Payable, the cost of the vehicle when you bought it, plus interest/that came with the agreement). So, the lender will have to take back the car even if it dramatically depreciated beyond their expectation. Hire purchase and conditional sale factsheet. so is it is simple as that ? There have been cases when borrowers tried to exploit the clause without having the grounds to do so. So because i was at work and pushed for time i asked him to make a personal judgement of the damages as there is a scratch and dent on the back wheel arch so he give his own assessment and advised i would be charged around 200 for that works based on his experience and would be an additional cost of 35 as the garage i got the car from never gave me the full V5 so i just signed the form, which now i totally regret because he is now trying to charge me nearly 700 for the damage and non return of the V5. He was only out of work 8 weeks, lost his job, fiance and managed to keep hold of his house, no electric etc. Typical APR 15.9%. They said is something related to tax rebate and excess of mileage. why do you want to VT the car can you afford the repayments? Go back to the lender and say that you are terminating your contract under Section 99 of the Consumer Credit Act (1974) and that section 99 and section 100 of the Act do not say that termination is conditional on your having paid half the total contract amount or on not having arrears. Oodle Car Finance is a trading name of Oodle Financial Services Limited which is registered in England & Wales, under Registered No. Unfortunately, the voluntary termination process might not go as planned. For everything else please contact us via Webchat or telephone. And you cant VT it and then say you would have preferred to have it repossessed. Yes the lender can take him to court for the rest of the 50% amount. Labeled Verified, theyre about genuine experiences.Learn more about other kinds of reviews. Need help or want to report an issue? If you choose to voluntarily terminate your PCP car finance contract, you'll be required to pay 50% of the total amount payable. Your personal or financial circumstances have suddenly changed You cant afford to keep up with repayments because youve been laid off, you/your family members are going through health issues, or there are bigger financial commitments. The car finance company can hit you. Registered Number 10120411. They wont willingly guide you to this option and wont be much help if you try to enact it. You can also find out more about what counts as fair wear and tear onlinefrom BVRLA in their 2021 guide, ororder a hard copy. 2023 Trustpilot A/S. Hi I have paid over half on my finance and the engine on the car is tapping I cant afford to get this fixed can I use vt thank you. But if you cant pay the car finance, then nothing is going to protect your credit score. If you pay for your car monthly and find you can no longer afford to, then the first thing you should do is speak to your finance provider. Read the Legal Beagles guide and post on the Legal Beagles forum https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues for help. Alternatively, you might want to cancel your car finance agreement because you want a new car. I do have other problem debts including a 4k from lendable that defaulted around the same time and has been sold to intrum and another 2k with myjar that again, I have not paid since Jan 2020 but they have not defaulted. You can ask National Debtline on 0808 808 4000 or ask on the Legal Beagles forum: https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues. Can voluntary termination impact on my credit score? I went to BMW and explained the situation, and I was advised by the salesman to VT the car, as I was only 3-4 months off the end of the agreement anyway. Ok , thanks for all your replies and the hard work you do. My son contacted KIA to advise he wanted to VT and return the vehicle and asked where he should deliver the car to. Voluntary termination of a vehicle finance agreement is the legal right of a borrower or customer to cancel an agreement early. But PCP finance comes with a special requirement the balloon payment. They have got back to me today and not upheld the complaint. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more. You have a right to tell us you want to end your agreement using the voluntary termination option at any time. Another option is to part exchange the car, so that you can use the equity as a deposit on a new car. The National Debtline fact sheet https://www.nationaldebtline.org/fact-sheet-library/hire-purchase-debt-ew/ says: If you decide to terminate your agreement voluntarily and hand back the goods to the creditor, you should only have to pay up to half of the total amount payable under the agreement, minus sums that you have paid and sums that are due. The lender may say you cant VT it because you havent paid 50% yet or because you have arrears. They could, for example, allow you to defer the payments for a short period of time, or they may be willing to extend the period of the loan to reduce the cost of the monthly payments. Data Protection Licence Number ZA247205. If it has, you no longer have the right to do this. Voluntary Termination (VT) - how to end your car finance early When you are buying a car on HP or PCP finance, you have the right to hand the car back and end the agreement. Keep in mind this isn't just half of the car's value. This means that even if you made it past the halfway point in your monthly payment schedule, it wouldnt be considered as 50%. Check your manufacturers guidelines for more information. By VTing the car you have already had the amount to repay reduced by much more than the interest. PCP is an incredibly popular option for car finance agreements, thanks to its flexibility. If you lease your car through a personal contract hire (PCH) scheme then its a lot more difficult to hand it back to the finance company. Section 99 of the Consumer Credit Act says that in some circumstances you can voluntarily terminate a regulated HP or PCP agreement. In a traditional HP contract, you pay the same amount every month for a set number of years. You have a mountain of debt and token payments just kicks the can down the road. Does voluntary termination affect my credit score? An alternative, voluntary surrender, may be preferable. I suggest you post on this other forum https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues where there are a lot more comments about VTing the regulars there can be very helpful on whether to challenge something and what to say. The mileage limit is also stated in the original agreement. Voluntary termination means you hand your car back to the lender after paying over 50% of your finance deal. and the balance chased from me. The problem i got is a need car as my son as autism. If you are unsure, talk to National Debtline on 0808 808 4000 about your options. The termination clause does not say you have to have paid the x before you terminate the agreement. You can take photos of the scratches so they cant add on an unreasonable amount. There is no balloon payment required to own the car, unlike with PCP agreements. I have just done a Voluntary Termination of my vehicle with Motonovo finance and a company called Crystal Collections and theyve said my car has a few scratchs over the car but the biggest fee they have given me was for servicing as only had a partial service history and want 300 for this the whole bill is 591 which includes scratches over different panels and bumpers and a scrape to an alloy wheel. Just this car issue As a need a reliable car. They might offer to extend the length of the lease, which would lower your monthly payments, or come to some other arrangement to help you out. How likely is it they would go for a ccj I dont own anything and have low income. All you need to do is inform your dealership that you wish to use voluntary termination in writing. 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Between September and February there was nothing showing on the payment record. If you cannot make significant repayments, then it isnt clear there is any possible option that will let you keep the car. Its just my credit file thats my main concern for remortgaging in a year time when its time to re-negotiate. The key here is that 50% of the total finance amount (which is not necessarily the value of the car) has been repaid. SeeCan you afford your car finance payments? *Fees apply. Heatwave nearly caused blackout in the UK, Millions could be pushed into debt due to energy bills, MPs warn. Our Oodle Team are here to support you every step of the way. If you have been left still owing money after the VT, then winning an affordability complaint is likely to clear that debt and may get you some cash refund as well. Important you cant VT your contract if it has already ended. In a PCP contract,the lump sum payable at the end is included in thetotal amount payableunder this agreement. Then you will not get the protection of the 50% figure being the maximum you have to pay.). Moneybarn are saying I should have notified them of the DMP and that I kept up to the payments other than the payment holiday. Disclosure requirements. F&I Online Ltd t/a Carplus is an authorised credit broker, not a lender, registered in England, VAT registered company GB394768140, company registration number 09664343. Oodle Car Finance has raised a total of 160M in funding over 2 rounds. My brother has a debt plan and the car finance company rejected his payment and have been chasing him for money threatening to take him to court. Our results speak for themselves. You must tell the finance company in writing that you are terminating your contract. Pay the same amount every month for a ccj I dont own anything and low! Because you want to end your agreement using the voluntary termination process not. Same amount every month for a ccj I dont own anything and have low.. 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