Any advice on ending car finance.

[sirbob10]

Hi

 

Just a quick question.

 

We have a car on finance and still have 2.5 years to run then a balloon payment at the end.

 

We have just got a motability car and were wondering if there is any way of sending ours back. We haven't got to the 50% mark yet. I can't default on it in any way as the finance is in my fathers name although my husband is the registered keeper.

 

Any advice would be great

 

Thanks

[dx100uk]

you can VT under 50%

but you will have to pay to that level

after the auction value of the car is deducted.

 

 

who is the finance Co.

dx

[sirbob10]

Hi. Thanks for the reply.

 

The finance company is Toyota.

 

Does it make a difference.

 

I'm just worried if it goes to auction they sell it for pennies. The car is worth about £11500 but the 50% mark is £10,200. We have paid around £5500 so far.

 

Thanks

[theoldrouge]

50pc mark is 10200, you have paid 5500 (including deposit?)

 

so you would need to pay another 4700 post termination provided the car is in average condition for its age

 

Auction price is immaterial , what they get is their reward for the other 50 pc

 

You can agree to pay the 4700 by instalments post termination

 

but you must VT this using s99/100 coca 1974

[sirbob10]

Hi

 

Many thanks for your reply.

 

If we go down the VT route will this have an impact on my fathers credit file.

 

Thanks

[sirbob10]

Also I have read the HP agreement and it only says I can VT at 50% but doesn't mention if I can do it sooner.

[theoldrouge]

It's your statutory right s99(1)

 

99 Right to terminate hire-purchase etc. agreements.

 

(1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

 

(2)Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

 

(3)Subsection (1) does not apply to a conditional sale agreement relating to land after the title to the land has passed to the debtor.

 

(4)In the case of a conditional sale agreement relating to goods, where the property in the goods, having become vested in the debtor, is transferred to a person who does not become the debtor under the agreement, the debtor shall not thereafter be entitled to terminate the agreement under subsection (1).

 

(5)Subject to subsection (4), where a debtor under a conditional sale agreement relating to goods terminates the agreement under this section after the property in the goods has become vested in him, the property in the goods shall thereupon vest in the person (the “previous owner ”) in whom it was vested immediately before it became vested in the debtor:

 

Provided that if the previous owner has died, or any other event has occurred whereby that property, if vested in him immediately before that event, would thereupon have vested in some other person, the property shall be treated as having devolved as if it had been vested in the previous owner immediately before his death or immediately before that event, as the case may be.

[theoldrouge]

Finance cos hate vts, so if you wish to proceed come back for suitable letter