pcp voluntary termination.

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Jwong
Posts: 6
Joined: Sun Mar 26, 2017 3:20 pm

pcp voluntary termination.

Post by Jwong » Fri May 19, 2017 4:02 pm

Good Afternoon,

I hope you are all well.

I have a Corsa E 1.2 LTD edition in flame red. I purchased the car on PCP with the mileage at 8,000 per year. My agreement is supposed to end in March 2018, however due to a change in job I now travel more miles than what I used to when I first received the car. Due to the mileage charges I would have to fork out an extra £1000 pounds when I hand the car back in.

The total amount listed that I have to pay is £15,375.20p (amount of credit+interest +cost of credit).I placed a £3,800 deposit on the car and have paid 26 months worth of payments which equals to £3,900 which would mean I have put £7,700 to the car. As I have paid 50% of the car , does this give me the right to voluntarily terminate my pcp?

I look forward to hearing your feedback


mattb_srivx
Posts: 232
Joined: Sun Nov 27, 2016 6:24 pm

Re: pcp voluntary termination.

Post by mattb_srivx » Fri May 19, 2017 6:45 pm

You'll have to read the small print and see what it says! Not very helpful I know but the devil will be in the detail.

Found this on another website which sounds like you might be able to terminate after the 50% paid off mark...

"Voluntary termination of a PCP or HP – how it works
As long as you repay 50% of the total amount owed (not the total amount borrowed, as you need to include interest and fees), you are entitled to terminate the agreement and return the car to the finance company. As long as there are no “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)”, you have nothing further to pay.

The total amount payable (which is the total amount borrowed plus interest and fees, and also includes the Guaranteed Minimum Future Value on a PCP) must be clearly shown on any car finance quotation and contract, so you should be able to find it easily enough. You must pay off half of this figure to be able to voluntarily terminate your PCP or HP."

All you can do is contact the PCP provider and ask.
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jezyg
Posts: 141
Joined: Tue Mar 08, 2016 6:41 pm

Re: pcp voluntary termination.

Post by jezyg » Fri May 19, 2017 9:09 pm

Best place to start is get a settlement figure and see if what you owe and what the car is worth is anywhere close. If month 26 on a 36 month agreement you won't be far apart. Plenty of places to get PX figures from.
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srihaggis
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Re: pcp voluntary termination.

Post by srihaggis » Fri May 19, 2017 9:50 pm

I have no experience with PCP, but could you not ring up the PCP provider and see if they can increase the permitted mileage without penalty? Just thinking of how insurance works, I always seem to ring up asking them to up mileages on policies. There might be a small charge involved per month but will probably be cheaper than a grand if they allow it.
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Jwong
Posts: 6
Joined: Sun Mar 26, 2017 3:20 pm

Re: pcp voluntary termination.

Post by Jwong » Fri May 19, 2017 11:17 pm

Thanks for all of your feedback it's much appreciated. I think I will go back to the finance company and see what they say. I highly doubt they would let me up my mileage, especially now I'm in the last 10 months of my contract. I just didn't know if anybody on here has terminated their contract.


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jezyg
Posts: 141
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Re: pcp voluntary termination.

Post by jezyg » Sat May 20, 2017 7:08 am

Jwong wrote:
Fri May 19, 2017 11:17 pm
Thanks for all of your feedback it's much appreciated. I think I will go back to the finance company and see what they say. I highly doubt they would let me up my mileage, especially now I'm in the last 10 months of my contract. I just didn't know if anybody on here has terminated their contract.
I have changed several cars early on a PCP, VT is only worth doing if you are in negative equity. First move should be to get a settlement figure. From there you can sell the car be it privately or back to a dealer/trader. If the finance value is less than the cars value then you can pocket the difference. If in negative equity than VT may be the more sensible option.

Corsa values are firming up slightly after sliding quite severely due to over registration and the market being flooded by pre-registrations. Pre-April 2017 models also pay less road tax that has also had a positive effect on values, the 1.2 was £120 a year if I am right?

Use this to get a pretty accurate free trade value on yours, as most dealers now use CAP:

https://www.capconnect.co.uk/ConsumerVa ... WRTZ&New=1
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Susan44
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Re: pcp voluntary termination.

Post by Susan44 » Sat May 20, 2017 8:30 am

Get the dealer to agree a written condition report before committing and take plenty of dated pictures. If you want to play this 50% termination game the car needs to be "clean" as they say in the trade. No mods. Also remember the rules say you just hand it back and cut your losses. If you want to sell it on privately you are talking about settling early which is a different scenario. Legally if you follow the rules and get agreement all round it should not affect credit score. I might be tempted to get an Experian report after a few months.
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