Handing Back PCP Car Early

cgwalsh

Hi,
I am looking to get rid of my Audi A6 that i have on a PCP scheme through VW/Audi finance.
I am nearly 3 years into a 4 year deal & have been told be a colleague that i can hand the car back to the finance company as long as i have paid at least half of the original invoice.
I just confirmed with the finance company i have paid more than half of the total cost, so can someone confirm if this is true?
Also, i have gone over the agreed milage of 20 000 miles per year (65600), should i expect some excess milage fee?
Any advice is much appreciated.

Colin

happyc84

I've just done this 1/2 way through a 4 yr PCP. Dealer and Finance company were okay but I was trading in. They can charge you for the excess mileage, depends on the rate in the T & C's; they might also charge you for excessive wear and tear. Good luck

WatlingA5

Not 'having a go' here, but I'm puzzled why you didn't ask the finance company when you were checking how much you'd paid off?

cgwalsh

Wanted to know where i stand before i ask them!

WatlingA5

Fair enough - preparing your ammo

Best of luck.

rs65

happyc84 wrote: »

I've just done this 1/2 way through a 4 yr PCP. Dealer and Finance company were okay but I was trading in.

Trading in is different from voluntarily terminating a finance agreement. You can trade in any time.

happyc84

rs65 wrote: »

Trading in is different from voluntarily terminating a finance agreement. You can trade in any time.

Post was asking about terminating PCP early, once you are 1/2 way through your term you can hand back. Trading or terminating - no difference; i could have handed the car back after half way point.

rs65

happyc84 wrote: »

Trading or terminating - no difference

There is a huge difference. If trading in, you would benefit/suffer from any positive/negative equity. If VT, you are simply handing it back.

If you have reached the 50% point and have negative equity then VT it.

If you have reached the 50% point and have positive equity then trade it in.

rs65

happyc84 wrote: »

once you are 1/2 way through your term you can hand back

I think it is 1/2 way through the amount of the finance not 1/2 way through the term.

motorguy

rs65 wrote: »

I think it is 1/2 way through the amount of the finance not 1/2 way through the term.

Not quite - its halfway through the total cost of the transaction, including any deposit, interest and balance financed. It will be a clear amount on the finance agreement.

motorguy

happyc84 wrote: »

I've just done this 1/2 way through a 4 yr PCP. Dealer and Finance company were okay but I was trading in. They can charge you for the excess mileage, depends on the rate in the T & C's; they might also charge you for excessive wear and tear. Good luck

You dont understand whats going on here and you're confusing the issue with half truths.

Your ability to hand the car back once 50% of the total cost of the transaction. This is a statutory right, it is not something the finance company have any say in.

It does NOT diffentiate in that statutory right agreements that have mileage clauses (usually PCP) and those that dont, therefore legally, the finance company CANNOT enforce any excess mileage charges*

* The caveat to that is they can charge you for anything in excess of fair wear and tear. Very excessive mileage could be construed as being in excess of fair wear and tear. Now, how that would be triggered would be if you had a 6,000 per annum PCP deal and you tried to hand the car back at 3 years old with 75K on it. I would say the finance company would be able to get some sort of clawback on the difference between average miles and the actual miles. However, if your agreement was for 6000 miles per year and you handed the car back at 36K miles at 3 years old, they couldnt claim access miles.

Dont forget this is a STATUTORY RIGHT so its got nothing to do with whats written in the contract.