VT-ing a PCP - the ball is rolling. My experience.....

[SkodaVRS1963]

I don't know if there's any mileage in this but I thought I'd document my personal experience of VT-ing my PCP in case it's useful to anyone else in the same boat.

 

I received a phone call today from the Ford dealer handling the sale of my Focus ST.  It's on a low-loader and will be with them Friday.......less than four weeks from order to delivery.

 

So, I got straight on the phone to VWFS using the 0870-whatever number detailed in the documentation.  Connected straightaway to a recorded message that helpfully told me that if I redialled the same number (except using 0370 instead of 0870) then I'd be charged a cheaper rate for the call.

 

A nice touch.  Although I don't know what difference there is between the two area codes.

 

So having redialled I was (surprisingly) straight through to a UK call centre.  I told the (very pleasant Scottish) lady that I wanted to VT my agreement and she handled the whole thing perfectly.

 

Apparently my details will now be passed to British Car Auctions who will call me within a week to arrange inspection and collection.  Total call length was 13 minutes.

 

So I'm soon to be an ex-VRS owner.

 

I'll update this with any activity.

Edited 17 August, 2016 by SkodaVRS1963

[GoneToBeemer]

Are you over your agreed mileage or all ok?

[themanwithnoaim]

Yes please keep updating. I intend to do this too as soon as I hit 50%. The end of year 2 offer I had could only have been taken with KY jelly, I was being ****ed that hard

[Matt Pez]

There is an article in this week's Auto Express, issue 1435, warning that whilst VT does not affect credit rating, all VTs are logged and anyone VTing more than twice will be red flagged by credit underwriters resulting in future applications either rejected or subject to less favourable terms. They criticise dealers for encouraging customers to VT to lure them into new deals without highlighting the potential future pitfalls!

I would rather get a heavily discounted deal from an internet broker, take a cheap rate loan from a well known supermarket or high street store rather than take out a PCP, take the loan out over 12 months longer than you intend to keep the car to keep payments down and use the equity in the car to pay off the loan or keep it for the extra year to increase deposit next time round!

[GoneToBeemer]

There is an article in this week's Auto Express, issue 1435, warning that whilst VT does not affect credit rating, all VTs are logged and anyone VTing more than twice will be red flagged by credit underwriters resulting in future applications either rejected or subject to less favourable terms. They criticise dealers for encouraging customers to VT to lure them into new deals without highlighting the potential future pitfalls!

I would rather get a heavily discounted deal from an internet broker, take a cheap rate loan from a well known supermarket or high street store rather than take out a PCP, take the loan out over 12 months longer than you intend to keep the car to keep payments down and use the equity in the car to pay off the loan or keep it for the extra year to increase deposit next time round!

No sure how it can affect your credit rating, as its part of the Consumer Credit Act as a right to voluntarily terminate - there should be know marks on your credit score no matter if you do it once or a hundred times!

I think if anything detrimental showed on your credit report, then you'd have a right to fight it as it's not a missed payment or default etc.

[Matt Pez]

No sure how it can affect your credit rating, as its part of the Consumer Credit Act as a right to voluntarily terminate - there should be know marks on your credit score no matter if you do it once or a hundred times!

I think if anything detrimental showed on your credit report, then you'd have a right to fight it as it's not a missed payment or default etc.

As I said above, they state it does not affect credit rating but they are saying they are logging VTs, not sure what the difference is but it seems that miss sold or Ill advised VT'd PCPs may well be the next PPI style finance product with no win no fee solicitors all over it like a rash!

[GoneToBeemer]

As I said above, they state it does not affect credit rating but they are saying they are logging VTs, not sure what the difference is but it seems that miss sold or Ill advised VT'd PCPs may well be the next PPI style finance product with no win no fee solicitors all over it like a rash!

Yeah sorry mate, I was just getting at the fact that they're logging it, so they're clearly using it against people for future credit applications.

That wouldn't surprise me either...got the American suing culture to thank for that!

[Hollinshead]

 

I told the (very pleasant Scottish) lady that I wanted to VT my agreement and she handled the whole thing perfectly.

 

Apparently my details will now be passed to British Car Auctions who will call me within a week to arrange inspection and collection.  Total call length was 13 minutes.

 

 

I would suggest sending a follow up email ([email protected]) to ensure this has been actioned, as when I did mine the pleasant Scottish lady had "forgotten" to action my VT despite taking payment from me for the shortfall!

 

 

No sure how it can affect your credit rating, as its part of the Consumer Credit Act as a right to voluntarily terminate - there should be know marks on your credit score no matter if you do it once or a hundred times!

I think if anything detrimental showed on your credit report, then you'd have a right to fight it as it's not a missed payment or default etc.

 

 

It does show on your credit file, please see attached images.

Edited 18 August, 2016 by Hollinshead

[GoneToBeemer]

It's still a green mark though, so shouldn't be negatively impacting your score.

[Hollinshead]

It's still a green mark though, so shouldn't be negatively impacting your score.

It doesn't effect the credit score, but it does show. So a finance company could see how many times you had done a VT, in the last 6 years at least.

[SkodaVRS1963]

Are you over your agreed mileage or all ok?

 

Only allowed 24,500 miles over the 42 months but already on 22,800 with 10 months still to go.

 

Girl on the phone never mentioned anything about mileage.

[SkodaVRS1963]

I would suggest sending a follow up email ([email protected]) to ensure this has been actioned, as when I did mine the pleasant Scottish lady had "forgotten" to action my VT despite taking payment from me for the shortfall!

 

 

Nice advice; will do!

[andyvee]

Only allowed 24,500 miles over the 42 months but already on 22,800 with 10 months still to go.

 

Girl on the phone never mentioned anything about mileage.

Because mileage shouldn't come into it - any credit agreement can be terminated at 50%, be it PCP or HP.

[OscarTheGrouch]

Only allowed 24,500 miles over the 42 months but already on 22,800 with 10 months still to go.

 

Girl on the phone never mentioned anything about mileage.

Assuming it's 6p a mile excess mileage charge then you'll get charged about £250 for that, nothing to have a cow about hopefully. Have you got a firm idea of what the car is worth today (about 14k?..), that will be handy if you need to "negotiate".

Certainly hoping it's all going to be painless for you. Anyway that focus st is going to bonkers good fun when you get!

[Minimoke]

It's still a green mark though, so shouldn't be negatively impacting your score.

It may not impact your "score" but it may affect your ability to obtain credit as it is flagged on your credit information which can, and is, used by some finance and mortgage companies when considering a credit application. The information is on the record for a reason - the colour is not relevant.

 

People fail to understand that simply because if your "score" is OK you will then be able to access credit automatically. That is not the case as a whole range of other indicators (not all of which is on a credit scoring company's score sheet) can also be considered at the time of application.

 

VT was intended, and introduced into legislation, as a form of primitive debt relief for those who get into genuine payment diffculties. As we know it has been substantially abused in practice, and the finance industry has been lobbying for it to be removed from legislation.  So far without success.

 

However - and this is where its getting interesting - finance companies may nevertheless increasingly use this information to refuse credit. The rationale will be that as the debtor has VT'd, it is an indicator that he has previuously run into payment difficulties so the question arises as to whether he can afford new credit. The crunch will come when a debtor, who has VT'd a previous debt, defaults for real on a subsequent credit agreement. The finance company could then find itself on potentially unsafe ground if the debtor claims that he was granted credit which the credit company should have known was unaffordable due to the information that was avaialble to it at the time of granting credit.

 

At the moment not all finance companies are using the VT data, but some are. Personally I think more will as the risks to them become higher. Alternatively interest rates will be hiked for all customers. 

 

As these indicators stay on record for 6 years, I personally would never VT unless I had to. It smacks too much of Russian Roulette.   

[JKW]

I went through the VT process today - new Skoda being collected on 1st September, current car will be stored at the dealership awaiting BCA inspection/ collection when I take delivery on the 1st.

I was informed by the Scottish (very helpful & friendly) lady that mileage is immaterial, and even the condition is not expected to be pristine (mine will be !), as long as the V5, 2 keys & service record are available and up to date, with any private number plate replaced (already done).

My dealership also informed me that they will take full responsibility with their insurance  for my car in their secure storage facility whilst it awaits removal by BCA.

Considering Skoda Finance are the people providing the finance on my current car (being VT'd) and my new car (on a PCH) then obviously there are no problems with providing said finance after the VT process.

JKW 

[SkodaVRS1963]

Assuming it's 6p a mile excess mileage charge then you'll get charged about £250 for that, nothing to have a cow about hopefully. Have you got a firm idea of what the car is worth today (about 14k?..), that will be handy if you need to "negotiate".

Certainly hoping it's all going to be painless for you. Anyway that focus st is going to bonkers good fun when you get!

 

Car is only worth about £12250 trade-in according to Ford CAP. That's a £12k depreciation in 32 months.

 

Re the Focus ST - can't deny I'm looking forward to a "spirited" drive back from Norwich on Monday!

Edited 19 August, 2016 by SkodaVRS1963

[SurreyJohn]

I went through the VT process today - new Skoda being collected on 1st September, current car will be stored at the dealership awaiting BCA inspection/ collection when I take delivery on the 1st.

I was informed by the Scottish (very helpful & friendly) lady that mileage is immaterial, and even the condition is not expected to be pristine (mine will be !), as long as the V5, 2 keys & service record are available and up to date, with any private number plate replaced (already done).

My dealership also informed me that they will take full responsibility with their insurance  for my car in their secure storage facility whilst it awaits removal by BCA.

Considering Skoda Finance are the people providing the finance on my current car (being VT'd) and my new car (on a PCH) then obviously there are no problems with providing said finance after the VT process.

JKW

I wonder if anyone falls foul of service record not upto date, presumably if you are late and have overdue a service, could be billed cost of it.

[JKW]

I wonder if anyone falls foul of service record not upto date, presumably if you are late and have overdue a service, could be billed cost of it.

It does state any missing service records incur a £400 penalty, although that means the actual loss of the book I should imagine. It also makes clear the car should have up to date service history, current tax, insurance, 2 x keys & MOT if applicable.

What the penalty might be if a service has been missed is not mentioned specifically, unless the £400 mentioned is the fee for that too.

All in all, nothing unreasonable is demanded IMO, and so far the process for me has gone well. I requested, & received, an email from Skoda Finance today listing the full details of my VT application - everything clearly stated and recorded accurately.

JKW 

[SkodaVRS1963]

It does state any missing service records incur a £400 penalty, although that means the actual loss of the book I should imagine. It also makes clear the car should have up to date service history, current tax, insurance, 2 x keys & MOT if applicable.

What the penalty might be if a service has been missed is not mentioned specifically, unless the £400 mentioned is the fee for that too.

All in all, nothing unreasonable is demanded IMO, and so far the process for me has gone well. I requested, & received, an email from Skoda Finance today listing the full details of my VT application - everything clearly stated and recorded accurately.

JKW 

 

Yes, I took Hollinshead's excellent advice (post #10) and emailed them to confirm my VT conversation.  To be honest, I'd be surprised if they haven't actioned it seeing as they took a payment from my card for the deficit between what I've paid to date and the 50% figure.

 

Still awaiting a response and no contact yet from BCA.

[JKW]

I haven't paid the deficit yet, having been told there was no need to "until after the car is collected by BCA", when I'll receive a request to pay up !!

This did surprise me, but I'll pay it at the dealership when I collect the new car on the 1st - don't like it hanging over me.

Like you, have heard nothing from BCA yet, but was told "they're busy at the moment" !

JKW

[SkodaVRS1963]

I haven't paid the deficit yet, having been told there was no need to "until after the car is collected by BCA", when I'll receive a request to pay up !!

This did surprise me, but I'll pay it at the dealership when I collect the new car on the 1st - don't like it hanging over me.

Like you, have heard nothing from BCA yet, but was told "they're busy at the moment" !

JKW

 

They have 23 offices dotted around the UK.  Nearest to me is Bridgwater (circa 50 miles away).

 

I assume some of them will be busier than others.

[Neo_VR]

This is an interesting thread - given the implications of VT on ones credit file - and the fact dealers abuse it to sell new cars (was pushing me to do it with the citigo)

 

What would be the situation at the end of the term if the car is worth under the GMFV - isnt that just the same as a VT? - im sure unscrupulous dealers would take the VT option then to taking on stock they may not want.

[SkodaVRS1963]

This is an interesting thread - given the implications of VT on ones credit file - and the fact dealers abuse it to sell new cars (was pushing me to do it with the citigo)

 

 

I've got free accounts with ClearScore and Noddle; I'll post any entries I see as a result of VT-ing.

[Hollinshead]

To be honest, I'd be surprised if they haven't actioned it seeing as they took a payment from my card for the deficit between what I've paid to date and the 50% figure.

I wouldn't take that as a valid reason for them doing some actual work, as I made a card payment for mine. This is the email they sent when I chased it up.

Good afternoon

Thank you for your reply.

I do apologise about our previous reply, we can see that your information is already within this email trail.

After looking at the notes on the agreement, we can see that you called us on the 4th July to make the payment. However, it appears that no request was actioned to arrange for your vehicle to be collected.

We have raised this again with the relevant department and backdated your request to speed up the process for you and British Car Auctions should hopefully be in contact with you within the next 7 business days to arrange collection.

If you wish to have this arranged sooner, you are able to contact British Car Auctions yourself on 0845 700 4433 to arrange a collection date for your vehicle.

Due to it being a Saturday British Car Auctions may not receive your information until towards the middle or end of next week so it may be worth waiting until after then to contact them if you wish to do so.

Again, I would like to apologise for any inconvenience caused by this matter.

If you have any further queries please feel free to reply to this email. Alternatively you can call our Customer Services team on 0370 333 4449 between 8am-8pm Monday to Friday and 9am-5pm on Saturdays.