PCP deal question

cassidy0111

I recently contacted RCI Financial regarding the return of my car. I have paid just over half of the payments and no longer need the car due to a change in circumstances.

The call centre employee made several suggestions regarding alternatives to handing the car back. (trade in, private sale etc)

She then said that they would update my credit rating as "Voluntary Termination". Will this have any effect on my ability to get a mortgage in the next 12 months?

poppasmurf_bewdley

Voluntary Termination is a legal right, and as long as you have kept to your side of the contract and returned the car in a reasonable condition, there shouldn't be a problem with the VT.

The VT shouldn't have any adverse effect on your credit rating, and certainly not for a mortgage in the next 12 months.

cassidy0111

poppasmurf_bewdley wrote: »

Voluntary Termination is a legal right, and as long as you have kept to your side of the contract and returned the car in a reasonable condition, there shouldn't be a problem with the VT.

The VT shouldn't have any adverse effect on your credit rating, and certainly not for a mortgage in the next 12 months.

OK thanks. I was just concerned as the call centre person seemed to be throwing every idea out to try and make me think twice about a VT. The update to my credit rating was put forward as an area to consider. I guess they just do not want the cars back.

poppasmurf_bewdley

Of course they don't want the car back if they can avoid it. It probably means all their profit on the deal disappears. They only get the auction price for the vehicle, which can be very low, instead of the other half the original (high and often over inflated) price plus the interest.

Bogbean

Hi,
I was relieved to see this because I was about to submit the same forum topic! We are 2yrs in to a 3yr PCP (nearly new car) and in the past often change the car about now. We have been advised by Peugeot that they will be less interested in our car if it goes over 50,000 miles, currently 44, but they keep offering cars above the price range we have given them - we're not sure whether they are just trying to get us to pay more or genuinely can't get prices down and also not sure how true the 50k mileage thing is. (I'm very trusting and assume people are honest which may be my weakness!).

Via NHS I saw an offer on lease cars and called them to discuss whether we could leave Peugeot and go to them. They mentioned that we should bear in mind that a voluntary termination can be seen as a grey area which in theory should do us no harm but might not do us any good. I'm not expecting to need any credit checks so am hoping it won't matter but I guess we may have to stay with Peugeot yet. Maybe the registration change this month will bring us a bargain lol.

Anyone with advice/experience of dealing with car dealers or PCP who is willing to share would be greatly appreciated.

cassidy0111

Bogbean wrote: »

Hi,
I was relieved to see this because I was about to submit the same forum topic! We are 2yrs in to a 3yr PCP (nearly new car) and in the past often change the car about now. We have been advised by Peugeot that they will be less interested in our car if it goes over 50,000 miles, currently 44, but they keep offering cars above the price range we have given them - we're not sure whether they are just trying to get us to pay more or genuinely can't get prices down and also not sure how true the 50k mileage thing is. (I'm very trusting and assume people are honest which may be my weakness!).

Via NHS I saw an offer on lease cars and called them to discuss whether we could leave Peugeot and go to them. They mentioned that we should bear in mind that a voluntary termination can be seen as a grey area which in theory should do us no harm but might not do us any good. I'm not expecting to need any credit checks so am hoping it won't matter but I guess we may have to stay with Peugeot yet. Maybe the registration change this month will bring us a bargain lol.

Anyone with advice/experience of dealing with car dealers or PCP who is willing to share would be greatly appreciated.

Well, I have sent off the paperwork for VT. I hear in the news that Peugeot are not in the best of shapes financially and have been kicked out the French CAC 40 index.