Anyone ever handed back a PCP car?

CreditCardJunkie

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Merlin139

How big is the dent on the bumper? Less than 25 mm wide? If so its minor wear and tear. Over this size then its not.

Used to work for BCA inspecting and collecting cars. Must point out that it was not up to us to decide if someone paid for damage.

TadleyBaggie

CreditCardJunkie wrote: »

I have a four year agreement, two years had passed there in October so according to the policy documents I can hand the car back at any stage now.

You might want to read the documents again, as that would be a very unusual clause for a PCP agreement. I suspect it is more likely to say that the vehicle can be VT'd once half the financed amount has been reached, which for a PCP agreement will be very close to the end of the original term (depending on size of balloon payment).

Mercdriver

CreditCardJunkie wrote: »

Sorry what's VT? I don't have a balloon payment...whatever way mine was done I won't ever own the car. There is no final payment so must be a slightly different form of agreement?

I've read over them a few times and have also read online that once you're half way through you can hand the car back without it affecting your credit rating etc.

VT is voluntary termination, and it is what you are looking to do.

On my agreement, it says when 50% of the financed total including interest and charges have been paid. As my deal was a 0% deal, it would be at after the 18th payments has been made. Even with a typical straightforward HP (Hire purchase)the voluntary termination would be further along the agreement term, depending on the interest rates on the agreement.

Edited to add, that while you call it PCP, you say you don't have the opportunity to own the car. This would be a lease and you would be bound by the terms of the lease contract and it could get quite complex, as I don't think (I stand to be corrected)you get the option to terminate at halfway through. That's why it's better to have as short a lease term as possible, though manufacturers/leasing companies make long term leasing attractive by advertising low monthly fees.

marlot

CreditCardJunkie wrote: »

Sorry what's VT? I don't have a balloon payment...whatever way mine was done I won't ever own the car. There is no final payment so must be a slightly different form of agreement? ...

In that case you don't have a PCP. It sounds like you have a leased car (Personal Contract Hire). It may be expensive to end it early.

Shaka_Zulu

Just get the bumper repaired is should be cheaper in the long run.

neilmcl

CreditCardJunkie wrote: »

Sorry what's VT? I don't have a balloon payment...whatever way mine was done I won't ever own the car. There is no final payment so must be a slightly different form of agreement?

I've read over them a few times and have also read online that once you're half way through you can hand the car back without it affecting your credit rating etc.

I think you need to read your agreement a bit more closely. If it is indeed a PCP then there will be some form of balloon payment, also referred to a the Guaranteed Future Value (GFV) or Optional Final Payment. If it it's a straightforward HP then you will own the vehicle once all your payments have been made.

If neither HP or PCP then you don't have a credit agreement, you are simply renting the vehicle under a lease hire arrangement, which case you can't VT or hand back the car without a substantial penalty.

As stated you can only VT once you have paid 50% of the total amount payable as stated in your agreement. That would unlikely be after only 2 years of a 4 year deal.

Cornucopia

CreditCardJunkie wrote: »

It's a Peugeot.

Could it be the Peugeot "Just Add Fuel" scheme? This seems to be a PCP, although the details are a bit hazy.

Either way, part of understanding your options is to correctly identify the type of contract you have. If necessary, approach the Dealer or the Finance Company and ask them.

Was perhaps thinking I could use a relatives car until I got some money together, although should hopefully be 300 pm better off from July when my debts are paid off.

Any thoughts?

Why are you wanting to terminate the car "agreement"?

If it is simply the cost of the payments, I would suggest waiting until July, to see whether your £300pm improvement makes your £200pm payments look affordable.

Walking away from a car finance deal without a car is almost always a good way of throwing money down the drain, and is best avoided unless you are in serious financial difficulty.

wgl2014

And what does the contract say about ending early?

If you are looking to voluntarily terminate the agreement you will need to have paid off half of the total cost, due to the large balloon payment at the end this is going to be later than where you are now.

motorguy

CreditCardJunkie wrote: »

Yes it says about the 50% so I've paid £5200 and the car was around 12k so I can't hand it back yet then!

Wondering is it worth refinancing for the balloon payment - the car has been well looked after and at the point of owing 4k I'm likely going to need to spend at least 3 for something half decent. Better the devil you know?

There would be merit in that, particularly if you're otherwise happy with the car.

missile

You are in a hole, stop digging. Re-financing will surely cost you more. Best stick with the original deal ... if you can.