Hi Guys
I wondered if anyone has first hand experience of the above. I am thinking about terminating the agreement and having a company car.
I have heard that there are no issues with your credit rating and that you will be able to buy cars on finance again.
Cheers

Is Ling involved…?

£500+vat depending if teh Citizens Advice have OK’ed the paperwork.

It shouldn’t make a difference to your credit rating per-se, but it will be recorded. If you made a habit of repeatedly VT’ing cars with the same lender, they may decide not to accept you as a customer again. Otherwise you’ll be fine.
Remember, you can only terminate the agreement after 50% of the total amount payable has been paid. This won’t correlate to the term (it can be near the end of a PCP for example), so it is worth checking with the lender where you are at before making a decision either way on the company car.

I did it once and it didn’t effect me in any way at all that I was aware of.

Remember, you can only terminate the agreement after 50% of the total amount payable has been paid. This won’t correlate to the term (it can be near the end of a PCP for example), so it is worth checking with the lender where you are at before making a decision either way on the company car.

Would agree that giving the lender a call is the way to start. We looked at a VT recently, but as we put down a £0 deposit the 50% is actually a long way through the term. The other option could be a settlement rather than a VT, but then you’d need to find a way to sell the car and pay off the full amount.

As per Legend say …. when you ring them for the VT cost, ask for a purchase price too, then check it that against webayanycar, could be worth buying it then selling it on.

I did it twice. Finance provider got pissed off after the second occasion (especially since it was half way through a deal at 0%) and wouldn’t lend again.

There are lots of finance providers though…

Cheers. I am over half way through. As long as the black mark is against the lender and not against the credit ratig.

I wouldn’t ring the lender at all, personally. Also, there is no “cost” as you’ve already paid 50% or more of the total finance in order to be able to VT.

I would simply download a template letter available on the web and then send that to the lender to start the VT process. If they send you any paperwork you aren’t required to sign that to VT, as it can be an agreement to pay additional charges which you are not required to do.

Mate did this with his BMW. Very straight forward.
Contacted the finance company who sent out the docs to sign, then the company sent out an independent agent (from British Car Auctions) to check over the car’s condition.
He had to pay a small amount as he was over his contracted mileage

I’ve done two a VW and Audi so effectively the same finance company, no issues and I got finance through them for a 3rd car. This is diesel so if the bottom really falls out of the market in a few years I do this one and they can take the loss.

This was actually detailed in my finance agreement.

No issues here.

I have got a few dents and scratches on the car. Does this affect the VT process?

Are you talking about ending and paying the outstanding balance (no issues at all) or ending and not paying the balance ?

I did this a few years ago; no problems at all. I had to drop the car off at a nearby car auction place (luckily it wasn’t a million miles away) and I paid the local chips away guy to sort out a bumper scuff before it went in – apparently they can sometimes be overly picky with bumps and scuffs so that’s really where the lottery is.

So I have not VT’d a car myself, but i do work (very) closely with this process…

So you will not have any black mark placed against you if you VT a vehicle. Its a consumer right and one which is actively used nowadays (ah PCP’s the saviour and now the cancer of the motortrade) I would say however that if you utilised the same lender and VT several vehicles they may take a dim view. But its highly unlikely they will decline you for utilisation of your right as a consumer.

In terms of vehicle condition, your finance company would look for you to return the car in line with BVRLA fair wear and tear guidelines: https://www.bvrla.co.uk/advice/guidance/returning-your-leased-vehicle

They will have a cost matrix setup for damage recharge so if the car is a nail be prepared as some will pursue you for recharge….others wont.