VT RCI Nissan Contract error of 50% amount.

[Caprisun]

Great site and I hope to contribute in the future on several subjects.

I am planning to VT my car after looking at the PCP contract the 50% figure has been calculated as follows:

Car Purchase plus paint damage insurance. 26798
less Deposit paid by me 5350
total 21448

Interest charges 3124

Total charge for credit 3124
Total amount payable 29923
Termination rights figure 14691
(Pennies removed)

Cash price (before deposit paid removed) and interest added together and divided by 2 to reach a 50% figure above
This has been discussed with Nissan and state that the a the inclusion of the deposit already paid being within the sum is correct. Therefore the 50% figure will not be reached until month. 34 of 36. By my calculations I have reached and exceeded the 50% payable.
I know this is incorrect as the deposit it not part of the loan amount however Nissan say " they always do it this way???? Check your Agreements folks!
I plan to VT with a letter draft from this site but how should I deal with the incorrect additional balance request which will surely follow due the their incorrect compilation of the Credit agreement and subsequent 50% figure stated within?
At present they are in denial.

[Amethyst]

Re: VT RCI Nissan Contract error of 50% amount.

The deposit is, in essence, part of your payments, so if your full price inc everything was 29923 then your 50% is 14961 - and you have already paid 5350 plus your monthly installments to date ( don't know how many or how much those were ? ) so you can VT once you've paid installments of 9611 ( on top of your deposit) - presumably there's a back end payment at the end of the 36 month term ( or it'd be something like 682 a month and would be 50%'d in 14 months)

Deposit is usual an 'advance payment' rather than a 'deposit'.

[MENTION=71570]R0b[/MENTION] ?

[R0b]

Re: VT RCI Nissan Contract error of 50% amount.

Amethyst is quite right the deposit is included as part of your total amounts paid to date.

Two things to be aware of:

(1) calculating the total price payable is set out under the the Consumer Credit (Agreements) Regulations 2010, Schedule 1 para. 12 http://www.legislation.gov.uk/uksi/2...chedule/1/made

As you can see it is calculated as being the total amount being payable including any cash advance i.e. a deposit.

(2) Under a PCP agreement you are only paying off the depreciation of the car and so you are left with a higher balloon payment hence you only being able to VT close to the end of your agreement. Whereas under a true HP agreement, you are paying both the depreciation and the value of the car so you can terminate closer to the 50% mark.

Not sure I see what the problem is in your case.

[Caprisun]

Re: VT RCI Nissan Contract error of 50% amount.

Thanks for your replyIm on a different page:

I was looking at it this way:
Balance fro credit agreement after deposit. 21448
Plus int for term 3124
Total 24572
50% of total payable 12286

Deposit at the front leaves 50% of the deposit within the 50% sum total.
I have read that the deposit cannot constitute part of the 50% figure and should be 50% of the total credit taken at conception? Still looking for where I read this last night. Glad I posted got me wondering now. Pleased the VT letter has not been sent yet also.

[Amethyst]

Re: VT RCI Nissan Contract error of 50% amount.

You have to look at the deposit as a payment off the total sum... so call it an advance payment, rather a deposit... it is an issue that confuses lots of people. Lots also get quite upset that it isn't halfway through the term ( month 12 of a 24 month agreement etc) rather than half way through the monies, particularly when there are backend payments to be made. If you have a copy of the agreement that would be best to check the situation over ( remove personal details if you post it up)

Deposit at the front leaves 50% of the deposit within the 50% sum total.

not sure I get your thinking on that?

[R0b]

Re: VT RCI Nissan Contract error of 50% amount.

I may have wrote something like that on here some time ago but it has since been clarified as per the Regulations above - the cash advance must be included as part of the total price payable and then your liability is 50% of that.

[Caprisun]

Re: VT RCI Nissan Contract error of 50% amount.

You have to look at the deposit as a payment off the total sum... so call it an advance payment, rather a deposit... it is an issue that confuses lots of people. Lots also get quite upset that it isn't halfway through the term ( month 12 of a 24 month agreement etc) rather than half way through the monies, particularly when there are backend payments to be made. If you have a copy of the agreement that would be best to check the situation over ( remove personal details if you post it up)



not sure I get your thinking on that?

Thanks to you all for your input.

Here's the reckoning with each formula

My calcs. RCI cash price 26798.98 cash price 26798.98 less 5350 plus 3124.99 bal 21448.98 int plus 3124.99 Tot 24573.97 Tot 29923.97 difference 5350 50% 12286.985 50% 14961.985 difference 2675

[Amethyst]

Re: VT RCI Nissan Contract error of 50% amount.

Ahhh get you now on the 50% of the deposit ....

but still no

the 50% for VT purposes is of the total amount payable. You just paid 5350 right at the start then making up the rest by installments till you get to 50% ( 14961 )so you had 9611 left to pay before you could terminate.

What do you pay monthly ( and how many months have you paid ? total is due over 36 months? or did you have a couple months off at the start ? and whats the end termination payment ?)

[Caprisun]

Re: VT RCI Nissan Contract error of 50% amount.

Ahhh get you now on the 50% of the deposit ....

but still no

the 50% for VT purposes is of the total amount payable. You just paid 5350 right at the start then making up the rest by installments till you get to 50% ( 14961 )so you had 9611 left to pay before you could terminate.

What do you pay monthly ( and how many months have you paid ? total is due over 36 months? or did you have a couple months off at the start ? and whats the end termination payment ?)

36 @ £307 No holidays.
1 at £13500 balloon
25 payments made to date.
307 * 25 + 5350 =13025
Target 14961. Month 31 before I get there.

The principle of this way of calculation for the 50% figure smells of skulduggery, not the intention of the ruling but not effectively worded out.

[R0b]

Re: VT RCI Nissan Contract error of 50% amount.

I'm afraid whether you like it or not, the law says that lenders must calculate the total amount payable in a certain way and there's no workaround for it.

But as I've said, you've taken out a PCP which is a variation of the original HP agreement and your only paying the depreciation off the car so therefore you are going to be close to the end of your agreement before you can VT.

[Amethyst]

Re: VT RCI Nissan Contract error of 50% amount.

It's like renting a car really, this PCP, HP malarky.... presumably there are benefits to doing it. I can't see them myself. My parent lease their car ( weird but at least they know their just paying £xxx a month to borrow a car and don't have any worries about it getting old/going wrong etc) seems more honest as you understand from the off you'll never own it. Think I'd rather get a personal loan if I felt the need to have a 'new' car, but I'm quite happy with £500 decent little runners from ebay ... people say 'ooo but you don't have to worry about maintenance with a new car' well, tbh if my car goes wrong, I get a new one and it still costs me less.

( sorry that's just a rant and of no help to man nor beast )

[Caprisun]

Re: VT RCI Nissan Contract error of 50% amount.

A throw away car purchase was the next plan,now delayed due to today's findings. Thank you all for your wisdom and input.
PCP is a poor avenue to go down I agree.

[des8]

Re: VT RCI Nissan Contract error of 50% amount.

I like that attitude [MENTION=6]Amethyst[/MENTION]
It's why I run a classic
Simple to maintain - do it m'self and if it breaks down on the road I can get it home with a bent coat hanger and a piece of string
And there's no road tax and full comp less than £100 p.a.