Car Finance Early Settlement/VT

mattoak89

Hi All,

My fiancee has recently been given a promotion, resulting in a company car.

She currently has a car on a PCP deal and is about 60% through the 4 year term. We are pretty certain the car is worth less than the remaining balance, mainly due to excess mileage (30,000 vs entitled 20,000). We are therefore reluctant to obtain a settlement figure and sell it back to the garage - and still owe more.

I guess my main query is, what is my best option...

Can we Voluntarily Terminate the contract without penalty (both short-term in terms of excess mileage charges and long-term effects on credit history - all being well we should not need any credit in the next few years).

Or, is it best to just get the settlement figure from the finance company and take what I'm sure will be a very low quote from the garage, due to us having no bargaining power at all and then make up the difference from our own pocket.

Any advice will be helpful.

Thanks.:)

molerat

If she has reached the 50% figure stated on the agreement she can hand the car back without penalty or damage to her credit rating. She will however be liable for any excess mileage at the agreed rate and any non reasonable damage. You need to get the quote and see how it weighs up. Is a car or mileage allowance available from the employer instead of the car ?