• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Voluntary termination and fixed sum loan agreement

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Voluntary termination and fixed sum loan agreement

    Is anyone able to tell me if I can evoke VT for a fixed sum loan agreement with Hyundai Finance? They are saying I can only use voluntary surrender.
    There are still 3 payments left to go to get to the 50%. I would like to pay these in a lump sum and then terminate.

    I'd be really grateful for some guidance.
    Thanks in advance
    Tags: None

  • #2
    Re: Voluntary termination and fixed sum loan agreement

    Originally posted by Firehorse66 View Post
    Is anyone able to tell me if I can evoke VT for a fixed sum loan agreement with Hyundai Finance? They are saying I can only use voluntary surrender.
    There are still 3 payments left to go to get to the 50%. I would like to pay these in a lump sum and then terminate.

    I'd be really grateful for some guidance.
    Thanks in advance
    Hello, the answer is no. A fixed sum loan agreement is essentially the same type of loan which you would obtain from your bank except it is used specifically to pay for the car. Unlike a hire purchase agreement, you actually own the car so it is yours to sell if you wish. I can't see how you can voluntarily surrender the car when its yours to own.

    That being said, some companies have been dressing up a hire purchase agreement as a fixed sum loan agreement so you need to check the terms carefully. Things to spot out for is any clause mentioning the car being owned by the lender, whether you have to pay a balloon payment at the end to pay are examples of a hire purchase agreement, not a fixed sum loan.
    If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    LEGAL DISCLAIMER
    Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

    Comment


    • #3
      Re: Voluntary termination and fixed sum loan agreement

      Thanks for the reply. There is a balloon payment at the end but no mention of the lender owning the car. I have the log book.

      Comment


      • #4
        Re: Voluntary termination and fixed sum loan agreement

        Difficult to say without seeing the whole of the contract. Below is an example from Santander of what a fixed term loan should be, and as you will see a fixed term is essentially fixed monthly instalments each month over a fixed period of time. If you have a balloon payment, that goes against the ethos of a fixed term loan agreement and so I'd be questioning why this is the case.

        https://www.santanderconsumer.co.uk/...ixed-sum-loan/

        Who is the lender?
        If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
        - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
        LEGAL DISCLAIMER
        Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

        Comment


        • #5
          Re: Voluntary termination and fixed sum loan agreement

          Hello Rob,

          Again, thank you for your reply. I will go through the agreement carefully at the weekend. In the meantime though, I can see a mileage clause as well as the balloon payment clause. The company is Hyundai Finance.

          Thank you very much,

          Comment


          • #6
            Re: Voluntary termination and fixed sum loan agreement

            I may have come across Hyundai before with this type of odd agreement, but FYI here is what Hyundai have to say about their fixed sum loan agreements. Again, does not seem to appear to be what you have, and like I said, just because the title of the document says Fixed Sum Loan does not mean it is, you have to look at the detail and see if it has the hallmarks of a hire purchase. Of course trying to get Hyundai or the Financial Ombudsman to come round to your thinking is another thing.

            https://www.hyundaifinance.co.uk/med...yundai_fsl.pdf
            If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
            - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
            LEGAL DISCLAIMER
            Please be aware that this is a public forum and is therefore accessible to anyone. The content I post on this forum is not intended to be legal advice nor does it establish any client-lawyer type relationship between you and me. Therefore any use of my content is at your own risk and I cannot be held responsible in any way. It is always recommended that you seek independent legal advice.

            Comment


            • #7
              Re: Voluntary termination and fixed sum loan agreement

              Thank you.

              I have researched the agreement in more detail. It seems Hyundai use two agreements. 1. A fixed sum agreement which does not allow for vol. termination. It does have one final large payment at the end, but no option to hand the car back.
              2. The second agreement is signed at the same time and is called a Sales Agency Agreement, which then details the buyers right to hand the car back to the finance company (Hyundai Motor Finance), who will sell it at auction but guarantee a set price...which happens to be the exact same sum as the final payment on the fixed loan agreement (which is also between the same parties). however, if the milage has been exceeded, which is detailed in the agreement, then they will not guarantee the to pay the final sum.

              It seems to me, this is a very circuitous route to avoid the law in the Consumer Rights Act! It seems as if you have a PCP agreement, but you don't!

              Comment

              View our Terms and Conditions

              LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

              If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


              If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
              Working...
              X