VW Finance voluntary surrender or termination?

[on the sick]

Hope you can advise!

 

Daughter (21) has car on PCP finance with VW finance, paid for 18 months so still has 30 months left.

 

 

She is going to Australia to work but we dont know what to do with the car.

 

 

We're not in a position to take over payments an run the car, ideally we want to give it back.

 

 

We know we might be liable for outstanding debt.

 

 

Any advice will be welcome. Thanks.

 

PS Its all in her name, we're just helping sort it out as parents!

[dx100uk]

never ever VS

you'll be responsible for the full finance figure

 

 

VT IT

 

 

more later

[theoldrouge]

Best to post up the original agreement minus personal details, you will need to VT,but PCP contracts can contain extra clauses in the case of termination

[on the sick]

Thanks, will post agreement later.

[on the sick]

Thanks

[on the sick]

Thanks for the replies so far...I have tried to attach a copy of the agreement (minus personal details) but unable to find a link to do this - any supportive information would be most gratefully received.

 

Attachment is the agreement.

 

 

Thanks in advance for any advice.

[dx100uk]

where is page 1?

[theoldrouge]

as dx says page1 is important

 

you will need to VT under s99/100 CCA1974

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.

 

100 Liability of debtor on termination of hire-purchase etc. agreement.

 

(1)Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

 

(2)Where under a hire-purchase or conditional sale agreement the creditor is required to carry out any installation and the agreement specifies, as part of the total price, the amount to be paid in respect of the installation (the “installation charge ”) the reference in subsection (1) to one-half of the total price shall be construed as a reference to the aggregate of the installation charge and one-half of the remainder of the total price.

 

(3)If in any action the court is satisfied that a sum less than the amount specified in subsection (1) would be equal to the loss sustained by the creditor in consequence of the termination of the agreement by the debtor, the court may make an order for the payment of that sum in lieu of the amount specified in subsection (1).

 

(4)If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.

 

(5)Where the debtor, on the termination of the agreement, wrongfully retains possession of goods to which the agreement relates, then, in any action brought by the creditor to recover possession of the goods from the debtor, the court, unless it is satisfied that having regard to the circumstances it would not be just to do so, shall order the goods to be delivered to the creditor without giving the debtor an option to pay the value of the goods.

 

You will need to send the following letter to VW Finance to action the vt.......

 

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement

under Section 99 of the consumer credit act1974.

 

You will understand that the aforementioned section permits the debtor to terminate the agreement

at any time before the last payment is due.

 

There is no restriction regarding the exercising this statutory right,

particularly none in respect of any perceived arrears or monies due on termination

 

I understand that I shall be liable to you for the amount calculated under the formula in Section 100

of the Consumer Credit Act 1974.

 

As I have not paid more than the amount calculated under the formula in Section 100 the amount due is £XXXX(sum of total payments paid to date, inc deposit, taken away

from £8563.94 the 50% figure)

 

The above agreement will be terminated 14 days from the date of this notice.

 

Please send me details of how the vehicle can be returned to you.

 

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle;

guidelines also state that if you require me to deliver this vehicle

it must be no more than a short (reasonable distance) from my registered address.

 

Please confirm receipt of this request in writing within 7 days of receipt.

Yours etc..

 

You will also be liable for any excess mileage, as this is a seperate clause under PCP

The vehicle will need to be in average/reasonable condition for its age

Do not sign any of their forms

Attend the vehicle condition report, and agree its condition

Take dated photos of every aspect of the vehicle

 

Note that s99 and s100 are entirely seperate, you can reach agreement as to how to pay any outstanding balance post vt

it cannot prevent you from exercising your right to vt

[ReasonableRon]

never ever VS

you'll be responsible for the full finance figure

 

 

VT IT

 

 

more later

 

This is dangerous advice in some circumstances:

 

EG: I've just taken out HP for £10,000 - total amount payable over 5 years £16,000. No Deposit.

 

After a couple of months I decide I can't afford it and want to hand it back.

 

The car is realistically worth £8,000 (trade) and my settlement figure is £11,000. If I VS, and the car is sold for its trade valuation, I need to find £3,000 to settle it off and it's all finished.

 

If, however, I take the above advice and VT, my liability is for 50% of the total amount payable, which is £8,000.

 

In summary, I know that VT is preferable in many cases, but other factors including how long the agreement has been running, the current level of arrears (which remain payable regardless of the term run) and the condition of the vehicle also come into play.

[on the sick]

Ive cut most of page 1 off as it has my daughters personal details on. All it has on is her details and the cash price etc. It identifies amount of credit and payment, thats it. Termination of rights is on page 1 and where I have cut and paste from. Do I need to post initial bit?

[on the sick]

Agreement dated 27/02/2014

 

Cash price £14,675.00

Advance payment £ 1089.03

 

Amount of credit £13,585.97

 

Rate of interest 5.74% PA

 

Total amount payable £17,17.87

 

Initial payment £210.08 followed by 47 monthly payments of £210.08 followed by final payment £5,895 payable 48 months after first date for repayment. max mileage 5000pa and 20416 total max mileage.

 

Hope this helps.

 

Please could someone summarise our rights? I have read Consumer Act etc. Main thing is, we're happy to pay anything necessary to settle the debt but need to be able to do this with monthly payments - do you think this would be an option? My daughter isnt going to be in the country either so either they liaise with her with a delay in postage etc or I do it for her - would this be possible too?

 

Your assistance is much appreciated, thank-you all.

[on the sick]

Car is worth approx £9000 -£9900 current market value

 

Amount paid = £3570 approx

[theoldrouge]

So you have paid 18 times 210 (3780 plus your deposit of 1090) total 4870 from half the agreement plus any excess mileage

 

Approx 3900 to pay, which you come to an arrangement with VW to pay by instalments (your daughter should do this)

 

 

If you want to proceed use the above letter

 

Make sure you receive agreement in writing, attend and agree the vehicle condition report

 

Take photos from every angle, finance companies do not like VT so you must follow the correct procedure

[on the sick]

Thank-you for this, it is very helpful.