Can I walk away from PCP yet?

LM3

Hi -

I have been paying £257 a month now for just over 18 months now.

I paid a deposit of £750.

The total cash price was: £15994.00

The total amount payable was: £16175.00

Can I walk away from PCP yet or do I have to pay the rest?

Cheers

tykesi

Nobody here can read your contract, what does it say about early termination?

AdrianC

£257 x 18 = £4,626 + £750 = £5,376.

If you're talking about the statutory voluntary termination, that's once 50% of the total payable has been paid. 50% of £16,175 is £8,087.50

At your current monthly payment, that'll be another 11 months.

LM3

Sorry my complete mistake!!

I meant Ive been paying it for 30 months!

khcomp

So you've paid £8,460 in total: That's over 50%, so pending the condition of your car and any excess mileage, then you can voluntarily hand the car back and terminate the pcp agreement.

LM3

Perfect would that be at a cost or not?

khcomp

You shouldn't have to pay anything else unless you've exceeded the contract mileage (check your contract) and that the car is in good condition.

debtdebt

LM3 wrote: »

The total cash price was: £15994.00

The total amount payable was: £16175.00

Cheers

]]

So, the cost of the PCP interest was only £179? Are you sure there's not a balloon payment you've not accounted for?

LM3

Theres an optional final payment of £6730.00??

debtdebt

So you need to add that onto the calculations too.

khcomp

Well that's a big difference! Then the total amount of your PCP contract will include the final payment: You're stuck unless you can pay an additional £2992.50