PCP question

laticsforlife

I've just had a Voluntary Termination quote that goes like this ;

Liability £8,646 (50% of total financed)

Paid £11,399 (no arrears)

I am also 7,000 miles under my limit.

Provisional amount due £0

In the top part is a space for 'cost of repairs' that would appear to go onto the £8646 figure.

Does this mean I can 'afford' to have £2500 of repairs before I will actually have to pay anything?

I other words, because I am way above the 50% figure, am I essentially in credit.

Edi81

You have paid more than 50% of the total amount payable.

How much would a regular settlement figure be and how much is the car worth? You may be better selling and settling rather than VTing.

Cornucopia

laticsforlife wrote: »

Does this mean I can 'afford' to have £2500 of repairs before I will actually have to pay anything?

No, not unless the repairs are required by the Finance Company before they will accept the vehicle back.

I other words, because I am way above the 50% figure, am I essentially in credit.

No.

The VT clause is very specific - having paid 50% or more of the total amount payable, you can hand the car back subject to it being in reasonably good condition for its age. It is non-negotiable and inflexible beyond that.

laticsforlife

Ok.

Think I'll get the alloys cleaned up then (not much else wrong).

Cornucopia

laticsforlife wrote: »

Think I'll get the alloys cleaned up then (not much else wrong).

Definitely get the "normal" redemption figure as suggested by Edi81, as it may be more economical for you to redeem the agreement in that way. You would need to arrange to dispose of the vehicle yourself, possibly though a Dealer or Car Buying service who can pay off the finance upon receipt of the car, and (ideally, with the right figures) give you a cheque for the outstanding equity.

laticsforlife

I can't imagine WeBuyAnyCar giving me over the redemption figure (£5,913).

In fact, just checked and they offer pretty much exactly the redemption figure, so in order to make a profit, would need to buy the car and sell privately.

And to do that I would need to get road tax shortly (£20) a new MOT (£40), 2 new tyres (they are JUST OK for MOT purposes but would put off private punters) , then advertise it (£55+ on Autotrader); find somewhere to keep it safe (and keep it clean for viewings), then haggle, blah blah blah.

I checked Autotrader and there were only 2 of my car with similar spec and mileage, both were from car dealers and were about £7,000, so there is potentially some money to be made but it's a lot of hassle for potentially little reward.

Cornucopia

Ah, okay, it sounds as though you're on top of all the options.