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[05omegav6]

Surely they lose out regardless whether the car goes back now or in two years time

They aren't obliged to like or be happy about it, but they are legally bound by Section 100...

1.If they lose out in anyway......do you think they will go quietly?

2.Or that your record will be unaffected in anyway?

3.Or that everyone would not be doing this?

1.http://www.legislation.gov.uk/ukpga/1974/39/section/100

2. Last car I VTd is on my credit report as settled, no defaults or any other markers. Have had 5 car agreements running since... all settled except current one.

3. Presumably people don't read the terms and conditions

[05omegav6]

Taxi Al......I would look more deeply into this. You may be correct but I very much doubt it.

As already stated, finance companies are not noted for their benevolence.

Hence asking the question here... given the eclectic mix of raggamuffins here, someone might have had experience of this

The principle of VT is sound and proven, I have first hand experience of it. The question is essentially one of  timing...

[Sir Tigger KC]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

[The Sheriff]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

You want the daewoo? You can't handle the daewoo! 

[Kevin Wood]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

[The Sheriff]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

Shut it you.

[Marks DTM Calib]

So much for plain English legislation:

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.


So horrific wording

So in summary, your liable (simple bit) unless it states otherwise in your T&Cs

And you have to pay the creditor just over or around one half of the total sum less your payments before termination

There is also no mention of you keeping the goods, its nothing more than a exit clause, so I would see the creditor then getting the asset to sell to make up the difference

And that to me is exactly how you would expect it to be 

[The Sheriff]

So much for plain English legislation:

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.


So horrific wording

So in summary, your liable (simple bit) unless it states otherwise in your T&Cs

And you have to pay the creditor just over or around one half of the total sum less your payments before termination

There is also no mention of you keeping the goods, its nothing more than a exit clause, so I would see the creditor then getting the asset to sell to make up the difference

And that to me is exactly how you would expect it to be 

That's it, just how I understood it to be. Shut up now, Al. 

[Field Marshal Dr. Opti]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

[The Sheriff]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

Similar.....

[Field Marshal Dr. Opti]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

Similar.....

To be fair to Daewoo they are no worse than FSO, Wartburg and Polski Fiat.

....and probably superior to the legendary 'Commie built' Moskvitch.

See, I can be nice about your Daewoo.

[The Sheriff]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

Similar.....

To be fair to Daewoo they are no worse than FSO, Wartburg and Polski Fiat.

You'd know, having driven /owned so many of them 

[05omegav6]

Firstly, no longer having the car (or the agreement is kind) of the point...

If you think that legislation makes no sense...

I can voluntarily terminate the agreement provided I pay the undisclosed termination liability before terminating the agreement. If the finance company sold the car at auctioin tomorrow the sale price is all profit and I still owe them the undisclosed termination figure.

If I voluntarily surrender the car, I am liable for the total agreement value (couldn't tell me what that figure was either ), including interest, less the achieved sale price and any costs.

If I pay half the agreement value (again an undisclosed amount), then they auction the car and I am liable for nothing and they keep the proceeds...

How they expect you to make a decision without giving you any idea of liabilty is beyond my simple brain... I appreciate that they cannot foresee what price the car might achieve at auction, but to claim to be unable to give an indication of the liability total (from which they would deduct the sale proceeds) is evasive at best. It should be liability minus sale proceeds. Yet apparently the liability is A and the sale proceeds are B. B is anyones guess. I get that, perfectly reasonable, but to not know what A is is baffling.

I am tempted to ensure that the car clears 300k in the next two years and then VT and see what they get for it then

[Field Marshal Dr. Opti]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

Similar.....

To be fair to Daewoo they are no worse than FSO, Wartburg and Polski Fiat.

You'd know, having driven /owned so many of them 

I once aspired to Lada ownership.

[The Sheriff]

I'll be watching this thread with interest then, because if it's true that you can buy a nice car on finance and then wriggle out of your agreement after a few months without consequence then that's me down the nearest Daewoo dealers! 

Erm.. Hang on a minute...

He really meant to say......Bentley.....Lamborghini......Aston Martin.

Similar.....

To be fair to Daewoo they are no worse than FSO, Wartburg and Polski Fiat.

You'd know, having driven /owned so many of them 

I once aspired to Lada ownership.

A lada wrote off my saab and drove away with no damage