Handing Back PCP Car Early

motorguy

happyc84 wrote: »

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.

As has been said there is a huge difference. When you trade in, the dealership will clear any outstanding finance balance and any remaining balance in your favour can be repaid to you, or more commonly, used as a deposit against your next car. Any negative equity is your problem.

When you VT you are exercising a statutory right and handing the car back to the finance company. Any negative equity is their problem not yours (the caveat being fair wear and tear on the car)

As i said, you dont have enough understanding of whats involved here and with due respect you might be as well not posting on this rather than post incorrect information and confusing the issue.

cgwalsh

Thanks for the info guys.
As i said, i have checked with the finance company & have paid more than half of the original invoice. As for wear & tear, the car is in good condition, few little marks on the paintwork. I am in negative equity, due to the milage 66000 in 35 months. However my contract is for 20000 per year, so i am not over by much. I just need to get my monthly payments down, so i think VT is the best option for me.
thanks again
colin