PCP Voluntary Termination

ed67812

Hi all

This is a bit long winded but want to check that I am correct.

I took out a 3 year PCP in October 2015 which should run until October this year.

Car was the right choice at the time, but need a bigger one before the summer holidays. I'm throwing figures around and obviously in a bit (not terrible) negative equity which is expected.

However, I am thinking a voluntary termination is the way forward. But the online guidance says that you have to pay back 50% of either "total amount payable", "total amount financed" or something else depending on where you read.

The "total amount payable" on my agreement is £14699.45 which is the 35 monthly payments + the balloon + the deposit (total £900 - £600 dealer contribution, £300 me).

The other page of the agreement has the same figure £14699.45 made up of amount of credit (£12700) + interest/fees (1099.45) + deposit (£900 again).....which makes sense as it is a different way of presenting the same things.

Am I correct in thinking that early termination relies on 50% of the amount financed + interest and charges. So in my case not £14699.45, but £13799.45 (£14699.45-£900 deposit).

Hence I need to have paid back 50% of this to voluntary terminate - £6899.73

I have so far paid £6120.56 in monthly payments and the initial finance fee.

I pay £213.27 a month. So after May's payment, I'll have just gone over 50%.

So I could wait until April and give the car back penalty free instead of being in negative equity?

Any thoughts? Anyone see anything I've missed or calculated wrong?

nelly12

ed67812 wrote: »

Hi all

This is a bit long winded but want to check that I am correct.

I took out a 3 year PCP in October 2015 which should run until October this year.

Car was the right choice at the time, but need a bigger one before the summer holidays. I'm throwing figures around and obviously in a bit (not terrible) negative equity which is expected.

However, I am thinking a voluntary termination is the way forward. But the online guidance says that you have to pay back 50% of either "total amount payable", "total amount financed" or something else depending on where you read.

The "total amount payable" on my agreement is £14699.45 which is the 35 monthly payments + the balloon + the deposit (total £900 - £600 dealer contribution, £300 me).

The other page of the agreement has the same figure £14699.45 made up of amount of credit (£12700) + interest/fees (1099.45) + deposit (£900 again).....which makes sense as it is a different way of presenting the same things.

Am I correct in thinking that early termination relies on 50% of the amount financed + interest and charges. So in my case not £14699.45, but £13799.45 (£14699.45-£900 deposit).

Hence I need to have paid back 50% of this to voluntary terminate - £6899.73

I have so far paid £6120.56 in monthly payments and the initial finance fee.

I pay £213.27 a month. So after April's payment, I'll have just gone over 50%.

So I could wait until April and give the car back penalty free instead of being in negative equity?

Any thoughts? Anyone see anything I've missed or calculated wrong?

It’s 50% of the £14699.45. Ie 50% of the total amount payable, your deposit and the dealer contribution are included in this.

ed67812

How does the dealer deposit contribution work then. Does that count as my payment?

If its 50% of the £14699.45 = £7349.73
then I've paid £900 + the £6120.56 in monthly payments / initial fee so that is £7120.56.

So I'm only one payment away from being in a VT position?