Voluntary termination of PCP
Hi all,
9 months into a PCP with Blackhorse and Pete Vardy but I feel like i cannot keep the car any longer as I feel i would be better off financially without it as times are hard at the moment. Obviously I've not met the 50% mark as it is a 48 month contract will there be a lot of hassle because of this?
I have met every payment on time with no hassle and the car is in same condition I had got it in with only an increase of 4000 miles so I'm under the 8000 I had agreed when I got it.
9 months into a PCP with Blackhorse and Pete Vardy but I feel like i cannot keep the car any longer as I feel i would be better off financially without it as times are hard at the moment. Obviously I've not met the 50% mark as it is a 48 month contract will there be a lot of hassle because of this?
I have met every payment on time with no hassle and the car is in same condition I had got it in with only an increase of 4000 miles so I'm under the 8000 I had agreed when I got it.
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Comments
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It depends what you mean by "a lot of hassle". So long as you make up the shortfall to take you up to the 50% mark then it should be relatively hassle free. Keep in mind that the 50% refers to the total amount payable including the balloon payment (as opposed to 50% in a period of time).
Depending on the figures, the 50% mark on a 48 month PCP can come around about 40 months or so into the agreement, so if you've already made 9 payments you would need to make a lump sum equivalent to around 30 times your monthly payment to be able to VT.
The above is very approximate - can you confirm the amount you financed, any deposit, monthly repayment amount, and the balloon payment?0 -
Is there a reason why my paperwork says hire purchase instead of PCP? I am very certain it was a PCP agreement I was getting into, even the video from blackhorse says PCP.
Anyway it says amount i need to pay is £9,572.32, deposit was only £100, monthly repayment is 154. and balloon payment is £2,723.
I asked for a settlement figure to see how much it would be to pay off in full and they said it would be £6,658.69. What if i cannot pay this in one lump sum ?0 -
In order to VT an agreement, 50% of the total amount payable needs to have been paid, and then you'll hand back the car with nothing more to pay.
Given that the 50% mark is likely to be a long way off, you should get a valuation for the car, and compare that with what you owe. If there is a shortfall, then you would need to pay that and sell the car for what it is presently worth in order to settle the finance. If you sell the car through a dealer or a car buying service then they should be able to make the necessary arrangements to settle the finance for you, if you pay them the cost of any shortfall.
The finance company is not obliged to accept the car back except under the contractual terms, or the statutory VT arrangements. However, if you are in genuine financial difficulty with it then talk to them.0 -
If the figures you've posted are correct then the options are you can pay £6658 to settle the agreement and you then own the car, or you can pay £3400 and hand the car back to VT it.
Alternatively as the previous poster says, sell the car to somebody in the trade who can settle the finance for you but you may find there is still some kind of shortfall that you will need to pay - all depends on how the car is valued now.0 -
I will just try and meet the figure thats on my clause which is £4786 (as you said pay £3400) if that is the easiest option.0
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I would phone up the finance company and ask them what the amount would be and then you know for certain. Expect to have to find a chunk of money.0
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