VT a PCP contract - Advice

adamck

Hi Guys.
My circumstances have changed recently and i no longer need my car that is on PCP.
I have a mortgage now and a company car, so i can no longer justify the monthly costs involved.

I have a few questions about cancelling the contract though.

The car has been slightly modified with removable aesthetics such as

- Window Tints
- Roof Wrap (vinyl)
- Boot Wrap (vinyl)

This was done purely to improve the look of the car and make it match the specification is originally wanted.
As the car was Approved Used, they cannot add additional factory extras such as tints and black roof.

Do i need to remove these before i VT the car? or will they accept it as it is?
I don't want them to charge me to remove them etc...
You cannot tell they are not factory options by just looking at the car and in my opinion it would be a shame to remove them.

I originally agreed to around 8000miles per year usage, which I'm over by about 8000 miles in total (over the 2 years).
Can they charge me for excess mileage?

I have seen reports on sites saying that they cannot charge me, but will try to...

see "How do I voluntarily terminate my PCP or HP?": http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

Anything i else i need to be aware of?
Can anyone answer my questions above?

The PCP is with Black Horse finance, i have about 22 months remaining and a £5000 final balloon payment if i stick with it.
The car is in very good condition with no dents or scratches, the wheels are a little scuffed as can be expected with a 3+ year old car but nothing more than wear and tear.

Thanks for advice

andyfromotley

I read the link.

1. Have you paid so far more than 50% of the totals cost of the credit, including interest payments, GTFV (balloon payment etc)? This amount should be on your credit agreement. If not then you can't VT.

2. I would remove ALL additions or they will be well within their rights to do so and charge you (a lot) for it.

3. I would have the wheels refurbished, its pretty cheap and will prevent them from charging you to do it.

4. I would make sure i photograph and video the car in great detail to ensure you have a record for any disputes.

5. I would make sure the inside is immaculate too.

Make no mistake they will try and stiff you in any way they can for extra charges, so do all of this to prevent them from doing so. Other than that go for it. Interesting thread, i learnt something i didn't know so cheers.

iolanthe07

The excess mileage rate is often 5p a mile, but you will need to check your agreement. 8000 miles at 5p a mile would incur an excess charge of £400. I am not sure they will waive this, as otherwise there would be no point in having it.

andyfromotley

According to the link its a loophole in the legislation surrounding these PCP's. If you VT they cannot charge you excess milage, but will try!!

adamck

Hi Guys.
Thanks for info... on the Audi forums (its an Audi) they have said they won't even notice the mods.
This is because they are factory optional mods anyway... they just look for damage.
The Mileage thing does appear to be a loophole... they don't like it but the VT is there for protecting consumers, its not something the finance companies offer, its a consumer right.
They appear to kick up a fuss, as they don't want you to VT as they can lose out on the interest, the car will usually get auctioned (and they can lose money again).
Im getting my company car next week... so ill clean up the car, give them a call and see what they say.
Also need to look though the PCP contract again tonight.

smitchy73

VW Group don't tend to try to charge for excess mileage, I returned a VW Golf a few years ago, with a lot of extra miles on it, no charge, and no mention of it either.

As long as the car is in good nick, I think there may be a picture guide on their website but as others have said get your wheels refurbed as they will probably charge you for that, as for the other things I doubt it will make that much difference as it will probably be sold at auction anyway.

I found VW very easy to deal with, I didn't even have to write to them just phoned the finance team/dept and they put me through to the team and I arranged it there and then, and they arranged a date for collection and that was that. Also received a final statement with final balance as nil.

adamck

Thanks for the reply.
The Car is an Audi, from a dealership but i went through Black Horse finance as Audi refused to give me the credit (i had an erroneous default on my credit score, which is now gone).
So im not sure if Black Horse will be the same, but i will get wheels refurbished, car cleaned up and see what the crack is

~Brock~

adamck wrote: »

......, but i will get wheels refurbished, car cleaned up and see what the crack is

I would see about getting the crack fixed first

adamck

So for me to VT my contract... do i need to be half way through the term?
OR do i need to be 50% through the finance?

I took the PCP out over 4 years with a £5000 balloon payment at the end.

The car started at £17,490 on the finance @ Aug 2012
Im currently at £9,927 (I'm 2 years and 7 months into a 4 year PCP)

Can i VT now?

Or do i need to wait until the balance is < £8745 ? (half of the total £17,490)

andyfromotley

There should be a figure on there for TOTAL cost of the car, including interest, fees, ballon payment, the lot. IE what this car would have cost you in total if you had made all the payments including the balloon payment etc.

You need to have paid half of this.

(so ignore the list price of the car etc. its half the total cost of EVERYTHING)

adamck

Black horse has given me a settlement figure of £8884 on their website.
The car itself is worth more as it stands at the moment.
I can see lesser spec (same car, model) with higher mileage and less extras going for £13500 on eBay...
I could in theory just sell the car and pay the settlement?