Voluntary Termination of Car Finance

Thanks Rachel, but would they action any kind of repossession or withdraw/change my agreement if they knew I was looking to VT. My paperwork just states that I can VT upon 50% of the value paid?

Asked by Derek
June 22, 2012

Hi Derek, No - the finance company can't change the agreement without your written consent so don't worry about that. I'd get up to date with your payments and then inform them you want to VT. You shouldn't have any problems as long as you follow their instructions :-)

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Rates from 8.9% APR. Representative APR 19.9%

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Rates from 8.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,030.

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5 years

Assuming your credit profile is:

Total cost of credit	£ 2000
Total repayment	£ 2000

48 monthly
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£ 245 98

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Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £25,000 over 48 months, £3,750.00 deposit, on PCP, with annual mileage of 8,000pa, and a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed), the amount payable would be £394.51 per month, an optional final payment of £7,194.33, with a total cost of credit of £9,912.36 and a total amount payable of £28,444.33.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Voluntary Termination (VT) related questions

I am looking at a volentary termination on my car loan as over 50% of the loan has now been paid and I meet all the criteria. My concern is that a Volentary termination note will be put on my credit file and I do not know what impact that will have on my

Asked by Richard Cornwell
June 22, 2012

Hi Richard, a great question - thank you. In a nutshell you can still "VT" or voluntary terminate your agreement without this having an effect on your credit rating. I'd advise to get this in writing first though from your current loan provider before carrying out the process. Also make sure you get a last payment date and pay it on time to prevent any missed payments being placed on your file. You are well within your rights to voluntary terminate as long as you have kept to all the lenders terms and conditions, mainly having made every single payment on time. Thank you

I have a car on hire purchase for 5 years. By the time I make my September payment I will have paid 50% barring £7. I want to "VT" the agreement to purchase a new vehicle and wondered if I offered to pay the agreement up to the sum of the 50% stated, i co

Asked by Clive Evans
June 22, 2012

Hi Clive, i don't think this is possible but i could be wrong. You'd need to check your agreement to see if this is a possibility or speak to your finance company. If you can do so it'd be the first time i've heard of it happening before. Please come back and let us know. Kind Regards, Rachel

I have a vehicle on car finance from Santander. I am more than half way through the agreement. I had a 60 month agreement and have paid 48 months. Am I allowed to voluntary terminate as the car is no longer usable. The turbo has blown on the car which has

Asked by John Davies
June 22, 2012

Hi John, you may well be able to VT your agreement and hand the car back but i'm not 100% on Santander's T&C's when it comes to voluntarily terminating your agreement. Your best bet would be to get them on the phone asap and ask a few questions. The car may well have to be in good working order if you wanted to hand it back. Please let me know either way as i'd be interested in the outcome. Good luck. Kind Regards, Rachel

I have been advised today to voluntary terminate my car as the value has reduced so much that I will not be able to trade it in. It is now worth £6500 but I still have £11500 to pay. I have 4 months to pay until the 50% mark. The car has been curbed on tw

Asked by Natalie
June 22, 2012

Hi Natalie, yes - once you've paid the remaining 4 payments and you're 50% of the way through your agreement you are within your rights to hand the car back to the current finance company (please just check all the T&C's and communicate with the lender as to not cause any problems). With regards to the slight damage you'd need to speak with them as to what they would want you to do with the car. They might just take the car back off you in it's current condition so i wouldn't go out of your way to repair the vehicle just yet. Regards, Rachel

I have completed my VT for my vehicle and it was taken away about 3 weeks ago. I have just recieved a letter from an auction company telling me I owe them £450 for damage. The only damage on the vehicle was minor, a scuff on the alloy wheel and a small pa

Asked by Louise
June 22, 2012

Hi Louise, I wouldn't ignore the letter. I advise that you check your original documentation and your VT rights. As I know that in most cases you are liable to pay for any damage to the vehicle if you want to VT it as it affects how much the finance company can get for the vehicle at auction. Your agreement may not be classed as settled until this payment has been made. It is usually advised that you get the vehicle in top condition before you VT as the fee will usually be more than what it would have cost you to fix it at your local garage. I'm sorry I couldn't be of any more help. Rachel

I have decided to VT my Fiat Qubo and have paid over the 50% required. My query is regarding my next DD payment on 11/7/12. If the letter is received by FGA prior to this date should I cancel DD? Should this be written in letter? Or do I have to wait for

Asked by Lloyd
June 22, 2012

Hi Lloyd, i wouldn't be sure on the specifics but i'd strongly advise that you keep your DD active so that you don't get marked down for missing any payments. The letter you receive should state all the information you require. You can always reclaim the direct debit payment if it is wrongfully taken too. Regards, Rachel

I have reached the 50% mark for payments on my finance agreement and have not missed or been late on any payments. If I contact the finance company to ask to return the vehicle what happens to the outstanding balance on the finance? Is it cleared or will

Asked by Gemma
June 22, 2012

Hi Gemma, the outstanding amount will be cleared when you return the car and the contract will be void. Please be aware that they will charge you for any excessive wear & tear on the vehicle.

I recently handed our car back under a Clause 99 Voluntary Termination. The car has been very well looked after, in perfect mechanical order and the interior was immaculate. I had the car cleaned up and any more serious damage repaired. The exterior was e

Asked by Steve T
June 22, 2012

Hi Steve, i appreciate the question and if i'm being honest i'd get them on the phone and try and settle for £65. It'll save you a lot of time and hassle and it may be the best outcome you'll get. You can contest the charges completely but i don;t know of anyone who has had the charges wiped out. You could be the first though so keep us all posted. Kind Regards, Rachel

I recently instigated a VT under section 99 and made reparation to the minor damage on the car. Any remaining damage was minor and what I would say was reasonable wear and tear under the BVRLA standards. However, the finance company sent an untrained coll

Asked by Steve T
June 22, 2012

Hi Steve, you may be within your rights to get an independent inspection on the vehicle but in all honesty that would involve further cost. I'd wait to see what your current finance company come back and say to you before taking any action. It would then be a matter between yourself and the finance company.

Once you inform the finance company that you wish to vt what more would I be expected to pay other than maybe one last payment? Will I be liable for any further costs that they can enforce against me or is it really as straightforward as handing the car b

Asked by Jo Mitchell
June 22, 2012

Hi Jo, once you have the finance companies agreement that you can VT your agreement then the last thing you'd be expected to pay is your last agreed payment with them. Then all you need to do is hand the car back. Don't stop your direct debit though until your final payment has been made. Each finance company will have their own criteria so please check with them to see if there are any extra charges and also check your finance agreement. Kind Regards, Rachel

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