Voluntary Termination

Mazzerrella

Has anyone entered a Voluntary Termination? If so have you had any problems getting credit ? 3 years ago I bought a car - PCP was mis sold and I may have to enter a VT
Anyone else had problems with PCP?
Thank you

smitchy73

You can't really be mis-sold a PCP, it's fairly straight forward, you pay a small deposit, pay a set monthly payment, and you have one large final payment - at this point you have three options
1. Pay the final payment and you own the car.
2. Hand the car back to the finance company and walk away.
3. Trade the car in and use any equity you have as a deposit towards a new car, this can be with any car manufacturer not just the one you have.

You might find the car has negative equity and not worth what the final payment is, in which case you might be as well to hand the car back and the finance company then takes the hit.

It could be you've done more miles than is allowed under the PCP in which case you have to pay an excess mileage charge if you hand it back.

In answer to your original question, i've done several VT's and still manage to get credit, but it is noted on your credit file, so if you go for another car, they may well see this and decide they don't want to take the risk with you as a customer and decline your application.