Hi all just wondered if anybody has used the V.T option and if so how easy was the whole process?

What is VT?

 

Seen this few times last few days..

Voluntary Termination ( of your Contract )

 

Once you have got to your 50% owing or passed it you can just give the car back and walk away, although charges might apply.

Edited 5 July, 20169 yr by Auric Goldfinger

No charges will apply when you VT unless the car has damage outside of the wear and tear.

I take it this is PCH and not pcp ?

VT can't be used on a PCH as you never own any of the car.

It is on any finance agreement (PCP or HP).

 

PCH is a lease so doesn't qualify.

Two questions; firstly does the 50% take into account buyer and dealer deposits or just the amount that was on finance when you made your first payment?

Secondly, is it 50% of what you pay before final payment or including final payment?

Thanks

VT is calculated on 50% of the total amount on finance plus fees and interest payments.

For example, if you bought a car worth £30,000, with 5 per cent interest and a fee of £100, your total amount owed will be £31,600 – if you’ve paid more than £15,800, you can hand the car back.

Are you liable for excess mileage charges (pro rata)?

Are you liable for excess mileage charges (pro rata)?

Shouldn't be as it is a consumer right on a finance agreement. The wording on Skoda's PCP contracts is a bit wooly though and contradicts itself, but others have handed back on VW and Audi agreements and mileage has not come in to it.

VT is calculated on 50% of the total amount on finance plus fees and interest payments.

For example, if you bought a car worth £30,000, with 5 per cent interest and a fee of £100, your total amount owed will be £31,600 – if you’ve paid more than £15,800, you can hand the car back.

50% of the total amount payable under the agreement, and your deposit forms part of that, so using your figures above if you had paid a £2k deposit, once your finance payments had totalled £13,800 you can hand back.

50% of the total amount payable under the agreement, and your deposit forms part of that, so using your figures above if you had paid a £2k deposit, once your finance payments had totalled £13,800 you can hand back.

Agree, although if I'm splitting hairs you would only have £1400 interest on £28k, so the total amount payable is now £31500 (inc fee). So VT now £13750

Look at the finance document you signed. It specifically lists the VT figure on it. No excess millage charges.

I used the VT option on car finance years ago (2000/2001) and handed it back because of negative equity, they stuck it through an auction but only cleared what they got for it from the finance.  It affected my credit score for a while and I had to fight them to get it cleared.  They said I defaulted on the difference.  I'm sure things have changed now.

Edited 6 July, 20169 yr by mk4gtiturbo

50% of the total amount payable under the agreement, and your deposit forms part of that, so using your figures above if you had paid a £2k deposit, once your finance payments had totalled £13,800 you can hand back.

Does that only include the buyers deposit or does it also include any deposit contribution from Skoda?

Does that only include the buyers deposit or does it also include any deposit contribution from Skoda?

It won't include any deposit I wouldn't have thought, as that money doesn't form part of the "amount to finance".

It's 50% of the money borrowed, not the total amount put in.

I used the VT option on car finance years ago (2000/2001) and handed it back because of negative equity, they stuck it through an auction but only cleared what they got for it from the finance. It affected my credit score for a while and I had to fight them to get it cleared. They said I defaulted on the difference. I'm sure things have changed now.

Most people say it shouldn't affect the credit rating. I hope not anyway.

It won't include any deposit I wouldn't have thought, as that money doesn't form part of the "amount to finance".

It's 50% of the money borrowed, not the total amount put in.

 

This has puzzled me; my agreement states I have to have repaid £12,175 (i.e 50% of the £24,350 purchase price) which means I get to that point after exactly three years (36 x £200 + £5,200 deposit).

 

But I only borrowed £19,150 so why is my VT figure not £9,575?  In which case, I passed that mark after 22 months?

Because the VT is based on the total price of the car. It won't affect your credit rating. It is possible they may mark your VW finance account as voluntary terminated but this WILL NOT affect you buying another car on VW finance, any other car or kind of credit. VT is there to protect the consumer.

Edited 6 July, 20169 yr by JamesVRSmk3

Because the VT is based on the total price of the car. It won't affect your credit rating. It is possible they may mark your VW finance account as voluntary terminated but this WILL NOT affect you buying another car on VW finance, any other car or kind of credit. VT is there to protect the consumer.

 

So in December, I get the car MOT'd and hand it back, having repaid > 50%.

 

It's in perfect nick (bar a small abrasion to one of the alloys, good job wife ).

 

Mileage at that point is going to be very close to the 42 month agreed limit even though I'm only 36 months in.

 

Does minor alloy wheel damage count as "wear and tear"?

 

Observations?

There is a guide available from VW finance about wear and tear which I found through Google. They have different limits for different ages/mileages. I believe it was 2 years / 20,000 miles or 3 years / 30,000 miles. Alloys wheel curbing is fine if under 50% of the surface area from memory. Chunks missing will be an issue I would have thought. Stone chips are fine and you are allowed scratches under a certain side.

It won't include any deposit I wouldn't have thought, as that money doesn't form part of the "amount to finance".

It's 50% of the money borrowed, not the total amount put in.

Wrong. It does include deposit, it is 50% of the agreement value, not the amount financed.

This has puzzled me; my agreement states I have to have repaid £12,175 (i.e 50% of the £24,350 purchase price) which means I get to that point after exactly three years (36 x £200 + £5,200 deposit).

 

But I only borrowed £19,150 so why is my VT figure not £9,575?  In which case, I passed that mark after 22 months?

Your argument doesn't stack up - you would have had to pay back 50% (£9575) of the borrowed money, which at £200 per month is 48 months .......

 

How much you have borrowed doesn't come in to it as it based on the value of the agreement - i.e the cash purchase price before any deposit.

 

On most PCPs it is somewhere around the 30-36mth mark depending on the term and GFV.

Does that only include the buyers deposit or does it also include any deposit contribution from Skoda?

Depends how the deposit contribution is represented on the finance agreement.