H.P. Finance Voluntary Termination Question

[SXGuy]

Im due to change my car next month.

My car has a baloon payment on HP at around £4650

The dealer at the time believed the car will be worth more than that when i go to take it back but i have my doubts.

In my finance agreement i have a voluntary termination clause.

When ive paid 2/3 of the finance i am able to hand the keys back, and just pay £460 instead of clearing the £4650.

What are the impacts to someones credit report if they marked a voluntary termination to the finance entry?

[MrsD]

Re: H.P. Finance Voluntary Termination Question

don't think it does anything, you haven't defaulted and you haven't entered an arrangement, you just did something perfectly legal that was in your lawful contract.

I did it when I was made redundant, never check my credit report obviously, but they did say it was fine at the time, however, they did make it as difficult as possibly and I had to complain because they tried very hard to cock it up, so go canny and make sure you keep an eye on the finance company

[SXGuy]

Re: H.P. Finance Voluntary Termination Question

Thanks MrsD

I did hear that dealers will only mention the VT as a last resort.

But tbh, they either give me the value of the baloon to take the car or they can have the keys, im done with further HP i just want to buy my next car in cash.

[Fortman]

Re: H.P. Finance Voluntary Termination Question

VT doesn't affect CRF's as all is within the contract.

[jen_br]

Re: H.P. Finance Voluntary Termination Question

Hi,

if you have a pcp there will be a GFV guaranteed future value... the GFV is just that guaranteed.

Therefore at the end of your term you have 3 options all without penatly**

1) Pay the balloon
2) trade the car in
3) hand the car back

option 3 as long as you haven't gone over your miles you just drop the keys off. end of.

[Never-In-Doubt]

Re: H.P. Finance Voluntary Termination Question

VT doesn't affect CRF's as all is within the contract.

Correct, the agreement would just show settled. It never defaulted so it will not add anything derogatory

[SXGuy]

Re: H.P. Finance Voluntary Termination Question

thanx guys. not sure if ive gone over my milage or not, i know i upped it when i re financed 2 years ago, and i think i do less than what i upped it to each year, but i cant be sure, so may have to pay the difference.

Either way it wll be a lot less than the baloon.

[Never-In-Doubt]

Re: H.P. Finance Voluntary Termination Question

but then you're writing off the last 3 years payments mate - always best to see if it is worth more selling it, ie to a mate - get them to pay the balance (plus extra) and sell it that way.

If I had a spare £5k it's something I'd consider cos that same car will probably end up on the forecourt for more anyway esp if it's under 3 years old with only 12,000 per annum

[SXGuy]

Re: H.P. Finance Voluntary Termination Question

haha, no i re financed it 2 years ago, ive had it 7 years.

Its an 06, done 98k.

Its worth roughly what my baloon payment is, so depending on whether i can get that much or more ill sell it, if not ill just hand it back.

Otherwise i have to find the difference which will reduce what i have to buy the next car.

[jen_br]

Re: H.P. Finance Voluntary Termination Question

Hi Sx guy. if you wanna pm me the details mileage etc of your car ill tell you the worth

[SaltnVinegar]

Re: H.P. Finance Voluntary Termination Question

I've done this twice now - it can actually be a very cheap way to run a car if you get the figures right which is why finance companies and dealers hate it!

By very careful that you ensure you are doing a voluntary termination of the contract and NOT a voluntary surrender of the vehicle.

Some people have been conned into the latter over the phone - to then find they are still liable for the remainder of the finance

Theres a template letter to use for the correct circumstances here:

National Debtline England Wales | Debt Advice | Factsheet 16 Hire Purchase Debt

[Fortman]

Re: H.P. Finance Voluntary Termination Question

It's also important to ensure you don't sign anything sent by the finance company. They'll try to tell you you have to, you don't!

When the condition report is done, take photos with that day's newspaper on them so they can see the date. cover every angle of the car, especially anything that might count as damage. Don't sign it unless you're completely happy with it.

[Never-In-Doubt]

Re: H.P. Finance Voluntary Termination Question

Hi Sx guy. if you wanna pm me the details mileage etc of your car ill tell you the worth

SX - fine to do this if you want to. You can trust Jen. She has insider knowledge in this area

[jen_br]

Re: H.P. Finance Voluntary Termination Question

Lets just see where you sit firstly.

[jen_br]

Re: H.P. Finance Voluntary Termination Question

SX - fine to do this if you want to. You can trust Jen. She has insider knowledge in this area

already done