Voluntary Termination of PCP with Black Horse

Suzie81

Hi - apologies if this is the wrong area to post.
I am currently halfway through a PCP finance agreement on my Mini with Black Horse. I have since got a new job in London which requires me to travel by train, and the car is just not cost effective any more as it will hardly be used and I cannot justify the costly monthly payments. I am considering a voluntary termination and I will buy myself a little run around. I have paid enough of the total amount payable in order to do VT according to the agreement. I was wondering if anyone has done this with Black Horse and what their experiences are? My car is pretty much immaculate, recently had its first service and is under the agreed mileage. Is it just a simple as hand it back and pay no more? I've read a few concerning things about huge bills being sent for damage repairs etc. When they come to collect, do they inspect the car before they drive it away? Any advice greatly appreciated as I don't want to get myself into a sticky situation.
Thanks

AdrianC

They will give the car a cursory inspection before driving off, then a proper inspection later.

Damage is assessed on an industry standard basis.
http://www.drive-electric.co.uk/wp-content/uploads/2016/05/Fair_Wear_Tear.pdf

bigadaj

There are reports of some finance companies getting awkward to try and do a joint inspection and agree the state of the car, also photos for any future arguments. Since you are under mileage then it may be less problematic, but be careful of signing anything that commits you to future payments.

Are you sure you can vt at half way through the contract, many will be far further into the deal than that.

fatbelly

PCP (and HP and conditional sale) agreements are regulated under the consumer credit act which gives the right to terminate at any time (s99) and then limits the liability to 50% (s100)

Legalbeagles has a useful article and sample letters to cover the potential problems that might arise

http://www.legalbeagles.info/forums/showthread.php?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*

Nasqueron

Are you 100% you have paid the 50% for a VT? Many people think they are but find out it's much less as your 50% figure includes the entire finance package including any interest. Unless a sizeable deposit was put down, 1/2 way through the PCP is often not 50% of the finance. Double check all your figures first

marty2be2000

Nasqueron wrote: »

Are you 100% you have paid the 50% for a VT? Many people think they are but find out it's much less as your 50% figure includes the entire finance package including any interest. Unless a sizeable deposit was put down, 1/2 way through the PCP is often not 50% of the finance. Double check all your figures first

Check this, the 50% needed for VT also includes the balloon payment due at the end of the PCP. Depending on the deposit you paid, you may not hit the 50% point until almost all of the monthly payments have been completed.

motorguy

Nasqueron wrote: »

Are you 100% you have paid the 50% for a VT? Many people think they are but find out it's much less as your 50% figure includes the entire finance package including any interest. Unless a sizeable deposit was put down, 1/2 way through the PCP is often not 50% of the finance. Double check all your figures first

^^^^
THIS

Just because you're halfway through the term doesnt mean you're halfway through the agreement

Its half the total amount due, including residual, interest, fees and deposit. That amount should be clearly documented in your finance agreement.

Nasqueron

Just as an example (based on 0% so don't have to factor in interest charges as well)

Total finance £24584

Deposit £500

VT amount = 24084 / 2 = £12042

£363.70 a month (total finance minus deposit, minus balloon) it would be 32 months to pass the 50% payment i.e. only 11 months before final payment

facade

Nasqueron wrote: »

Just as an example (mine is on 0% so don't have to factor in interest charges as well)

Total finance £24584

Deposit £500 + contribution £4500

First £258.95

Monthly £259.05

VT amount = 24584 / 2 = £12292

29 months / 43 before I get to 50%

If it was just the £500 deposit and say £363.70 a month (total finance minus deposit, minus balloon) it would be 35 months to pass the 50% payment i.e. only 8 months before final payment

Are you sure this is right?

I thought they subtract the deposit and contribution before you start, so the finance is for 19,584, half of this is £9,792 which at £259 a month is 37.8 months before you can VT.

purpleparrotuk

facade wrote: »

Are you sure this is right?

I thought they subtract the deposit and contribution before you start, so the finance is for 19,584, half of this is £9,792 which at £259 a month is 37.8 months before you can VT.

You are correct, it's 50% of the amount payable including any interest or fees, the deposit has nothing to do with it.

Nasqueron

facade wrote: »

Are you sure this is right?

I thought they subtract the deposit and contribution before you start, so the finance is for 19,584, half of this is £9,792 which at £259 a month is 37.8 months before you can VT.

Yes my maths was out, I should have put the 50% of the finance package, not value of the car, the second example is better, I have edited the post

It's a bit confusing as I stuck a big payment down to get the monthly figure I wanted, in hindsight wouldn't have made much difference, might as well have kept the money in the bank