Audi Finance - Need Advice

Tom_Parker

I am 18 months into a PCP deal with VW Finance and need out!

I pay £400 per month and have done so without fail since the deal began in Feb 08.

I now have a settlement of around £14k and the car is worth between £11-13k - depending on the trade or retail values.

I know I can sell it privately, pay off the outstanding finance, and foot the bill for any shortfall however is there a way I can just give it back and walk away from the deal? One of my friends suggested this is a possible???

Any ideas?

Rafter

Tom,

Depends on the type of finance and what duration you took it out over. Generally you can walk away when you are half way through an HP deal without paying any difference - it is VW's risk if the car is worth less than the outstanding finance at that point - and the deposit you pay at the outset should protect them.

Check your contract paperwork for the details.

Good luck

R.

gazzarw

Tom

If you have paid a certain amount, you can just give it back. Have a look on your paper work agreement or ask them for it.

Tom_Parker

The car was £21,995. I put £3000 into the deal at the start. I've paid 18 x £400 = £7200 . . . . .

My balloon is £8500 after the 36 months ?????

Any further ideas? Thanks all.

Peeky

I thought with this deal the only option you have is to give it back after 36 months with no penalty.

paulczar

Normally with a PCP loan, after you have paid half the loan you can hand the back and walk away. This should be highlighted in your original paperwork. If you've paid 18months the halfway stage should be very close and probably much cheaper to keep the car until this time rather than sell it now and pay the shortfall.

k1dda

Changes to the CCA should apply to your loan, the "1/2s and 1/3s" rule will apply whereby once you have paid a third of the agreement the finance company can't reposess without your consent and more importantly to you once you have paid half of the amount payable under the loan you can "voluntary terminate". If you phone them and check they will probably want it in writing from you and arrange to pick the vehicle up. The voluntary termination figure is calculated from the total amount payable under the loan i.e. the original amount plus the interest minus your deposit and what you have paid in monthly payments. One thing to note from someone who has worked for the asset/car finance arms of 2 of the top 4 banks is make sure the car is clean and tidy and get a SMART repair on any scratches if necessary as they will get you on damage recharges! You can normally top up the difference if necessary to get to half and from my calculations I make you very close - significantly less than taking 11k and paying THAT difference!

Hope this helps.