The problem: I had an offer to move to the US headquarters (promotion), and the benefits outweigh the benefits of staying here in the UK, including the car. Of course, I`m below 50% of the period, but I read in one of your other articles that you can sell your car to make 50% of the “total value” of the financing. That would mean that I wouldn`t physically be able to give anything back to the financial company, so I feel like I could misunderstood you. Can you let me know about my option in my situation from now on? I would hate to pay in San Francisco for a car sitting on an alley in the UK, 🙂 Hi Kyle. Yes, as stated in the article above, as long as you have refunded more than 50% of the total amount to be paid, made all your payments on time and maintained the car as planned, you can voluntarily terminate the contract and return the car. This is your legal right and does not negatively impact your credit quality. If the car has not passed the service due date, you should be able to return it without maintenance. However, if the service date expires before returning the car, you should make it wait. Your financing contract requires you to make the car wait on time – if you don`t, you`re violating your financing contract and they can probably refuse to allow you the car to VT. I don`t know how strict the financial company would be in your case, but in general, financial companies don`t like VTs, which makes them as difficult as possible. I recently started a hire-purchase contract over a period of 3 years; I`ve repaid just over 1/3 of the total repayments (including interest) due to a £1,800 deposit and have only had the car since October, but due to a job change this year I don`t want/can`t afford to pay that much for a car. Is the only option the “half rule”? Without money AND losing a car because I need a car, it becomes too expensive.

Hi Arnie. You can only get your VT car and leave when you have reached 50% of your total amount to pay. On a PCP, this usually happens only a few months before the end of the contract anyway. If you want to change the car at this point, you have significant negative equity because the car is worth less than what you still owe. Read this article about paying your PCP early as it applies to your situation. Hi Tom. You have to sell the car and pay for the financing. Unfortunately, there`s a good chance that the financial severance pay is more than the value of the car, so you have to spend the extra money to cover the difference. Read our article on managing your finances early. The lender may say you can`t VT because you haven`t paid 50% yet or because you have arrears. That is not right.

You have the legal right to do so, your financial company cannot have more restrictive rules. It is best to immediately contact the financial company and explain your situation. You can reduce your payments for a certain period of time, extend the duration, or increase subsequent payments, but you are not required to do so. They always enter into a financing contract at their own risk. This law and legal law were introduced to protect you or any consumer who is struggling to pay the monthly payments for their car. The finance company also has greater protection to prevent borrowers from moving away from a contract without an obligation to pay. This involves setting a total amount to be paid, which has usually concluded half of the agreement or if you have paid 50% of the total amount of the vehicle. Hello Stuart – Do you know porsche lease sales contracts, they are defined as a type of HP and I want to make sure before the commitment that VT is applicable, as I know that pure lease agreements are exempt from the regulatory rule. .

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