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Voluntary termination query

TCE home 2021 Forums Car finance Voluntary termination query

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    • #127843
      jacqui
      Guest

      Hi there circumstances have changed and I’d like to voluntary terminate my agreement as I am going to need to get a cheaper car – the details are as follows:
      total payable £25070.28 (50% through at £12535.14 – 48 month PCP) payments commenced May 15. By the time I pay my August 18 instalment £12337.93.68 will be due and I would have paid £197.21 more than I need to. My question is can I make a last payment in July to get to the figure of £12535.14?

      Also the car has been fully serviced there are scuffs on the alloys and I noticed this week when I went to hoot a car pulling out on me that the horn isn’t working (surprised as recently had its first mot) presumably I have to get the fixed before I hand the car back? Thanks you.

    • #128044
      den
      Guest

      I am in the process of VT my car can i cancel my car insurance immediately or do i need to carry it on till the pick it up, i get a new car in three days and can not afford to pay insurance on both cars.

      • #128628
        Stuart Masson
        Moderator

        Hi Den. You should definitely keep your car insured until it is collected or until you drop it off at the nominated point.

      • #130830
        Kirbie
        Guest

        Hello,
        I recently traded my car in and got a vauxhall astra gtc on hp finance. I asked the dealer if that car was good to run and he said yes. I am spending roughly £80 on fuel every week when i dont drive far at all i work 10 miles away from my house! I can not afford to run this car! Ive onlt had the car 2 weeks where do i stand in terms of voluntary termination? I owe £6000 on the car.

      • #130948
        Stuart Masson
        Moderator

        Hi Kirbie. I would guess that you are nowhere near being in a position to voluntarily terminate your car. For more information, have a read of our guide to voluntary termination.

    • #128061
      Stuart Masson
      Moderator

      Hi Jacqui. Yes, you can VT at any time and simply pay the difference required to get you to the 50% mark.

      The finance company will probably try to charge you for scuffs on the alloys, so you’ll need to decide whether you’re going to argue that they constitute fair wear and tear or get them fixed before giving the car back (will probably be cheaper than waiting for the finance company to charge you whatever they think’s a good number).

      If your horn’s not working, then yes you need to get that fixed and now – not in July or August.

    • #128810
      Emma
      Guest

      Hi my husband has bought a car from a dealership on a hire purchase agreement on the 23rd jan 2018. Hes had the car for 29 days . Now realising he isnt going to beable to afford the payments on this car.he has ohoned uo an explained and asked cabout bringing the car back before the 1st oayment is takrn .an hes bern tokd no he cant do that .where dies he stand is there any way if cancelling the cintract ?

      • #128907
        Stuart Masson
        Moderator

        Hi Emma. No, he has no right to withdraw from the finance agreement after the first 14 days.

        Even if he chooses to settle the finance agreement early, that doesn’t cancel the vehicle purchase. It just means that the finance company will bill him for whatever the settlement figure is (basically everything he borrowed plus a month’s worth of interest plus an early settlement fee).

        Basically, you need to work out whether you can afford the payments before signing the contract, not a month afterwards.

    • #129164
      Pam
      Guest

      Hi
      We bought a Nissan quashqai in November 2017 through a pcp agreement. We are struggling to pay the monthly repayments on our income and want to settle all the finance with our savings. We have paid 3 months instalments. Will it be in our favour to do this.

      • #129210
        Stuart Masson
        Moderator

        Hi Pam. Settling your finance after only three months or so is going to be very expensive, as you have repaid hardly anything and probably still owe more than you originally borrowed.

        For more information, have a read of our article on settling a PCP early.

    • #129263
      David Ferguson
      Guest

      Hi, I took out a Parcel van on a 4year finance lease agreement just over 2 years ago and now have moved job and do not have a requirement for a van , i asked the company and they told me i couldnt return i would need to sell and they would send me a settlement figure , is this the case ? Thanks

      • #129434
        Stuart Masson
        Moderator

        Hi David. You need to check your contract and find out exactly what sort of agreement you have. You say that you have the right to sell the vehicle, so it’s clearly not a lease agreement.

        If you have the right to voluntarily terminate your agreement, the details will be clearly set out in your contract.

    • #130994
      Dave
      Guest

      I am 3/4 of the way through a PCP for a car. Due to finish March 2019.
      Looking at valuations for the car now through various websites to sell or part ex what is being offered is up to £4K less than the current settlement figure. Is it worth seeing out the PCP or should I get early termination and walk away. Seems little point paying out more monthly payments if not going to get anywhere near final payment figure and there is a big service due October.

      • #131083
        Stuart Masson
        Moderator

        Hi Dave. We can’t advise you which path to take; all we can do is advise how the different options work so you can make an informed decision about what is best for you and your particular circumstances.

        You will need to weigh up the expected costs of keeping your current car against the costs and potential inconvenience of getting rid of it now.

        For more information, have a read of our guide to voluntary termination.

    • #198116
      Dan
      Guest

      Hi guys

      I have just notified finance company I wish to VT car. They say due to covid, there is a backlog and may not be picked up for up to 5 weeks. Also to keep insurance until such time

      What are my rights?

      I have a new car so wish to end old insurance asap. Old car will be kept in private drive.

      Do I need to keep insured?!

      Thanks

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