Voluntary termination of finance agreements

[pompei]

I know there are a few on here who are dealers or work in the motor trade ...

 

When a car is returned early under s99 of The Consumer Credit Act (ie after paying half of the outstanding money owed) is there any requirement that it is Motd? From what I can glean, it seems it has to be in good order, with fair wear and tear excepted. I'm just about to write to my finance company to hand back a car before the end of the agreement. The MoT expired last month and I don't want to be stung for getting an MoT and any work that might be needed at main dealer prices. Money is tight and if I can avoid getting it done, then that's what I'd prefer, though if there is any doubt then I'll get it done at Dennis' (don't ask ). The car is otherwise in good order and I've had various scuffs etc sorted out by a paintshop.

 

Thanks for any advice.

[CreepingJesus]

In my experience, you'll be giving them all the excuse you need to create a long list of charges. And I do speak from personal experience there, of dealing with a large, well known finance house. Whose payment protection insurance wasn't worth the paper it was written on...

[Alexg]

Ooh, good question. I guess it has to be road legal if VTed so I would assume yes. Is the car in neg'? (if im not being to nosey)

[pompei]

Oh no, it's actually almost at the end of the 3 year agreement and every payment has been made. I don't want to pay the rest to buy it and if I hand it back under the terms of the agreement rather than under the Consumer Credit Act then I'll get stung for excess mileage etc. I just want to hand it back and walk away, which I'm entitled to do but , being tight, I don't want to fork out for a test! Probably best not to take the risk?

[Alexg]

Oh, its a PCP. Well before putting your cock in the custard and terminating, ask your local dealer to bid you on the motor. If desirable they may offer you more than the final payment. They will then clear the finance for you and you'll have some cash in your skyrocket

[pompei]

They're not interested Final payment is already more than the car is worth

[Alexg]

whats the car mate, how much have you gone over on the miles

[dollywobbler]

This reminds me why I don't own cars on finance anymore. My Peugeot 306 DTurbo was a lovely thing, but it cost me over £10,000 once I added up all the payments! It was already five years old!

 

The future's shite.

[sporty-shite]

I'll get stung for excess mileage etc.

 

Is this a bit naughty?

[CIH]

Buying a nearly new Punto on a bank loan was the worst thing I ever did. I love low-cost, low commitment daily drivers nowadays.

 

Maybe if I had used th loan to get an Eight-Six Corolla things may have turned out better.....

[pompei]

Ha ha love that clocking idea! I thought that had disappeared with digi dashes! I can remember a mate doing the "ten years younger" thing to a Scirrocco. TKH396T. Don't know why I remember that

 

It's a lexus is200. Alan Partridge. Nice car when I had a bit more money coming in but now it's got to go and I'll get a cheapo dizzle. Excess mileage over 30k

 

I'll never again get a car on finance. At least it gave me 3 years in a nice place which I couldn't have afforded otherwise. Mrs P thinks it was money well spent ...

[Tayne]

.

[Guest Tony Hayers]

Should have got a Rover 800 or Bubble 214 for full Partridge imitation.

 

Sorry.

[Tayne]

.

[Richard]

Unless the mileage is recorded somewhere I'd definitely clock it. The dealer should be grateful, it's one less job for them to do when they get it back.

[pogweasel]

All sounds distinctly hideous.

 

These mileage caps almost negate the point of having a decent motor IMO.

Some of them seem to be set at 10,000 miles a year or less, in which case you may as well just trundle about in an old Ford Orion.

[Alexg]

It's a lexus is200. Alan Partridge. Nice car when I had a bit more money coming in but now it's got to go and I'll get a cheapo dizzle. Excess mileage over 30k

 

 

Yeah, I'd be terminating that f*cker

[Alexg]

All sounds distinctly hideous.

 

These mileage caps almost negate the point of having a decent motor IMO.

Some of them seem to be set at 10,000 miles a year or less, in which case you may as well just trundle about in an old Ford Orion.

 

Ive done loads of PCP deals with 6k limits, with customers telling me that they won't even do that many

[scooters]

Having had several finance agreements on cars I won't touch em now.5 years ago I made a concious effort to learn about older cars and now drive kit.

 

Perfectly safe efficient and reliable cars can be bought for sweetie these days.

 

I've just finished a 5 hour drive through frozen blizzards from Edinburgh to Durham in the 240 torslanda. Made for these conditions and handles superbly for s rear wheel bus. Cost me 700.

 

My brother in-law has a new audi a6 estate with a top of the range tdi. Cost 400 sheets a month and is in the garage all the time.....crazy vain fool

 

Don't. Compromise....always buy shite!

[warren t claim]

I really don't understand why anyone buys a new car.

 

According to creditexpert.com I can raise the finance for a decent used Boxter but what's stopping me is the simple realisation that I'll have to pay the money back.

 

Just because someone is willing to lend me money doesn't mean that I have the ability to pay it back without massive cutbacks on other essential expenditure. Someone else may not have my self restraint.

[fiatdaft]

don't want to piss on your chips but a pcp with an early termination option is very very rare without a penalty,i would check the wording of your contract very carefully,with regards to clocking moderns,most modern ecu's also record mileage so it will always be there and not to mention mucking up your service history if it is all stamped and up to date.

[boobydoo]

Finance Companies don't like Voluntary Terminations and it will show on your future credit record. Although a finance company cannot then refuse you finance simply because you have previously VT'd a car (you were acting within your rights as per the agreement) they can impose certain criteria before they lend to you again i.e larger deposit up front , a shorter finance term. to minimise their risk.

 

Almost without exception the car has to be returned in good, roadworthy condition so yes it will need a current MOT. You will incur costs without one.

 

I haven't come across that many people who decide to VT when at the end of a PCP to be honest. The excess mileage charge must be really high?

[Pillock]

In my experience (which is quite a lot when involving being royally shafted by finance companies) only dodgy ones don't like voluntary terminations. It shows that you know the system, and that you could do it again before they get their massive final payment.

A decent, honest finance company won't normally care that you've VT'ed previously. It doesn't show as a default on your history or anything bad, it just shows that you ended the agreement with all payments up to date.

[fiatdaft]

very true ^

 

but it is a pcp so in this case you really need to check what you have signed,as they are different.