Hey, Billy. The VT point is payable 50% of the total amount (including the ball), so it is usually quite late in the duration of a PCP. The amount should be clearly stated in your contract so you can know how much you have paid since your launch, and this will give you an idea of the proximity of your VT point. The guy who sold me said nothing about paying the money if I wanted to make the car early. The impression I got was that I could make the engine and just go away (something he said), but after reading different reviews here, I`m not sure I`d have to pay if I wanted to get rid of the next few months. Also, they`re still trying to track $6118.12 in future repayments? but $6118.12 – $5931.18 – $1619.40 – $13,668.70, is that $1806.34 more than the original contract amount? This is clearly wrong He warned me that I need a service at 15,550 miles, I have now made 25,000 miles, but I can`t afford the $200 they`ve indicated for maintenance on my monthly train bills at work (unexpected job change). If you pay yourself prematurely, there is a new calculation of the interest payment (because you do not pay interest for the last year of your agreement, if you settle now) so that the number of settlements will be reduced. This is not the case with a VT situation. Hello stuart, I chose a car on Citroen 3, the car is to be returned at the end of May, but I would like to return it in early April due to personal circumstances, I called citroen who told me that if I had paid 50%, then I could promote, but due to the fact that I put a big deposit down my monthly payments were very low at 89 euros, and I only have 2 payments left the last balloon payment would have been 4700 dollars, even if I were paying the last 2 payments, I still pay less than the balloon payment 3204 USD vs 4700 USD, so less than 50%. this means it will be impossible to make the car 2 months early (I leave the country for a while, so it will be a big problem if I can`t) says Richard Hi Rob. If it is an HP, voluntary termination rights must be included. A leasing purchase is a form of leasing, so it should be in it.
There must be a clause in the financial agreement that explains your VT rights, so you should be able to see them before you sign anything. Read this introduction to automotive financing, which covers various financial products, and our self-financing glossary. Hey, Kyle. Yes, as stated in the article above, as long as you have repaid more than 50% of the total amount, made all your payments on time and waited for the car according to the schedule, you can voluntarily terminate the contract and return the car. It is your legal right and has no negative effect on your credit rating. Hey, Arran. You must reach 50% of the total amount payable, so that unless you have very short term PCP and a very high deposit, you will need to keep the car much longer than 6 extra months. The amount you must pay must be specified in your contract with Mercedes-Benz Finance. If you want/must get rid of it very early, you have to pay a fairly large amount to MB Finance. If you want to complete your PCP or HP, plan ahead. Pay your monthly bills until you are able to exercise your termination rights.
The rules are very different if you terminate the agreement from a position of strength, instead of the financial company terminating the contract and claiming fees because you have defaulted on payment. Voluntary termination (VT) applies to both PcP (Personal Contract Purchase) and lease-to-sale (HP) contracts. In general, VT is much more reasonable than not paying your contracts, because the case of late payment can affect your creditworthiness, which affects their likelihood of being accepted for financing in the future.