Voluntarily termination of PCP

k3lvc

What was the car ?


Struggling to think of much where you could get a 50%+ residual after 3yrs/30k in that price bracket


If it is genuinely that desirable then just sell it now and pay off finance ?

foxy-stoat

OP, your options are - pay the £7830 ish and hand the car back now or keep paying for another 1 year and 2 months and hand it back then.

Unless you can get £23,000 for the car this is the only way you can get rid of it.

Unless you have gap insurance and are willing to "sell" it back to the insurance company.

You really should read the agreement and understood that you would never be able to VT the car without paying more than you would of done in the 3 years.

foxy-stoat

k3lvc wrote: »

What was the car ?


Struggling to think of much where you could get a 50%+ residual after 3yrs/30k in that price bracket


If it is genuinely that desirable then just sell it now and pay off finance ?

Is not the type of car that is the problem, its the contract, doesnt lend itself to be able to VT early without paying a lump of cash at any time you want to VT -

£28,600 total price
£ 2,000 deposit
£ 1,000 dealer (BS) contribution
£ 296 monthly payments x 36 = £10,656
£15,000 balloon payment

They have only paid in £6510 + £2000 + £1000 = £9510 so far on a car thats new price is £28600.

k3lvc

foxy-stoat wrote: »

Is not the type of car that is the problem, its the contract, doesnt lend itself to be able to VT early without paying a lump of cash at any time you want to VT -

£28,600 total price
£ 2,000 deposit
£ 1,000 dealer (BS) contribution
£ 296 monthly payments x 36 = £10,656
£15,000 balloon payment

They have only paid in £6510 + £2000 + £1000 = £9510 so far on a car thats new price is £28600.

But what dealer on a new car is going to offer a balloon payment of 52% unless they're confident of seeing this back ?

molerat

k3lvc wrote: »

But what dealer on a new car is going to offer a balloon payment of 52% unless they're confident of seeing this back ?

Maybe some creative accounting, offsetting and discounting of new cost price factors into it so the hirer is paying for some of the loss up front along with making it uneconomical to VT.

Nearlyold

k3lvc wrote: »

But what dealer on a new car is going to offer a balloon payment of 52% unless they're confident of seeing this back ?

A little bit of me is wondering if it's not a PCP but actually HP with a Balloon (no GMFV)