Can you really just "hand the car back" with PCP?

aaz01

With a 36 month PCP agreement, should it say in the contract that we can hand the car back?

Or is the only option to exercise our legal right to terminate after 50% is paid?

We have been offered a contract that says we MUST pay the full amount, including the balloon payment....
.... although later on it says we have a legal right to terminate at approx month 33.
That doesn't sound right for PCP, does it?

Oakdene

Most PCP's allow you to hand the car back once you've paid 50% of the contract value. So if the total amount on the contract is £14,000 if you've paid £7,000 you can hand the car back.

There may be charges for damage or poor condition to the vehicle though & tis advisable for you to take pictures of the car before you hand it back.

aaz01

So is that different to a termination?

We can just hand the car back... We don't need to do a termination... It won't be noted on our credit history... Right?

Oakdene

Its called a voluntary termination & shouldn't affect your credit history.

superbigal36

It will not affect your credit history but dont ever expect them to offer you another deal.
Might be worth checking if the dealer you bought it via is interested in clearing the finance.

The 33 months is quite probably correct.
Here is a very simple no interest example
Car Cost £6,600 No Deposit
36 Months Payments are £100 = £3600
Balloon Value is £3000
Amount paid after 33 months = £3,300 or exactly 50%