I am still trying to move on my business vehicle, and its taking longer than expected..
It is on a business contract hire lease, so only requires the signing over of the contract for the remaining time of the lease (35 months)
does anyone have any ideas where would be good to advertise this, or know of someone who is looking for something like this / may be interested.
it needs to move to a new business.
link to advert: [url= http://www.vwt4forum.co.uk/showthread.php?t=246154 ]HERE[/url]
any help appreciated
I can't imagine anyone would take on the lease.
You've only three options:
1 Give it back and take the 'fine' - you mentioned £10k, but is that an actual quote?
2 Sell it and pay whatever residual you owe VW - again ask for a quote
3 Carry on paying and use it...
As above really. Unlikely another business will want to take on the leasing deal it is a risk for them compared to just getting a new one with a bit longer on the lease.
One other thing you almost certainly cannot sell it without the finance company's consent. Legally it is not yours to sell as it is contract hired. Selling it without their consent could amount to conversion.
BMC.
A better solution. A family member or CLOSE friend agrees to take the van on for 1yr. You agree that all additional scratches/scuffs are chips away at their cost before they give the van to you again. They pay you and you keep up the DD's.
No one will take on (i.e. commit) a 3yr deal. With luck the person will like the van so much and keep it longer.
This'd suit someone who gets a company car allowance and normally takes the cash.
As the vehicle is Contract Hire you CAN'T sell it or transfer it. The vehicle was bought by Volkswagen Finance and they are hiring it to you. It is not your vehicle, you have just signed into a long term hire agreement. Contact Hire should be viewed as a rental agreement over years rather than weeks or days.
I'm guessing that you signed up to a 4 year Contract Hire agreement and the only way to get out of the agreement is to get Volkswagen Finance to value the vehicle, they will then work out what you would need to pay plus the vehicle to close the agreement.
What happens at the end of the hire period, do you get to keep it or do VW take it back?
The reason they need £10K is because the vehicle has depreciated significantly within the first year and they don't want to loose money.
For example (These are just made up figures):
Say you Contract Hire a new vehicle over 48 months. The cost of that vehicle is say £10000 new excl VAT. The finance company work out a future value for the vehicle. Lets call that £4000. They then deduct the £4000 from the £10000 and they then build in their profit margin (There are no interest charges on Contract Hire). Lets call the profit a £1000.
So your vehicle would cost you £10000 less £4000 plus £1000 = £7000 divided by the term = approximately £146 per month. Now after one year you decide you want out of the agreement. You have paid 15 payments at £146 (£2190). The vehicle is worth say £7000 (today). The contract hire company would add your payments so far and the current value (So £9190 in total) and then they would deduct that from the amount they needed back £11,000 (£10000 plus their £1000 profit).
So they need £11000 but you have only paid £9190, so you would then need to pay £1810 to get out of the Contract Hire early.
OP - Ask Volkswagen Finance what they have valued the vehicle at (excl VAT)? Work out what you have paid back so far (excl VAT)? Add the two amounts together and at a guess this figure is likely to be £10,000 less than the original vehicle cost (Again excl VAT). That will be why they want £10k from you.
footflaps: at the end of the hire period the vehicle is due to go back as it no longer being hired, but it is possible to purchase off VW as the contract ends
Is your business a limited company?
If so and you have not given a personal guarantee put the business into liquidation.
Contract hire goes away.
Is your business a limited company?If so and you have not given a personal guarantee put the business into liquidation.
Contract hire goes away.
Beat me to it....
footflaps: at the end of the hire period the vehicle is due to go back as it no longer being hired, but it is possible to purchase off VW as the contract ends
In which case, I can't see why anyone would take on someone else's hire contract unless you had a particularly amazing deal....
In which case, I can't see why anyone would take on someone else's hire contract unless you had a particularly amazing deal....
Exactly what I was thinking - where's the incentive for anyone to take on a 1 year old van for full contract hire price, especially when they can just go out and spec a brand shiny new one, to their own specification for similar or less money?
Think the only chance is for you to offer some sort of cash sweetener to encourage someone to take it off your hands (say £5k rather than the £10k you'd pay VW), but then I don't know how this would sit with the hire company?
This is why I'd never consider PCP, contract hire or any similar scheme. Far less hastle and cheaper in the long term to buy and sell a vehicle outright.