End PCP agreement

csharma84

Hello folks,

I have a car on PCP finance which I would like to end early but not sure what, if anything, I'd be liable to pay.

The cars price was £30k, I paid a £2k deposit and the monthly cost is £450 for 48 months with an £11k balloon payment. I have so far made 29 payments (£15,050 including the £2k deposit).

I read somewhere that if you've paid half the amount you can return the car under a voluntary termination.. so my question is.. half of which amount?

1. Half of £30k, i.e. £15k?
2. Half of £28k? i.e. £14k?
3. Half of the monthly payments.. i.e. 450*24 months?
4. Half of total payable plus ballon payment = 1/2 * (450*48 +11k) = £16,300
5. None of the above lol

Appreciate any help please. Thanks!

C

forgotmyname

Half of the total value.

EcoR1

You need to have paid £17300

neilmcl

csharma84 wrote: »

Hello folks,

I have a car on PCP finance which I would like to end early but not sure what, if anything, I'd be liable to pay.

The cars price was £30k, I paid a £2k deposit and the monthly cost is £450 for 48 months with an £11k balloon payment. I have so far made 29 payments (£15,050 including the £2k deposit).

I read somewhere that if you've paid half the amount you can return the car under a voluntary termination.. so my question is.. half of which amount?

1. Half of £30k, i.e. £15k?
2. Half of £28k? i.e. £14k?
3. Half of the monthly payments.. i.e. 450*24 months?
4. Half of total payable plus ballon payment = 1/2 * (450*48 +11k) = £16,300
5. None of the above lol

Appreciate any help please. Thanks!

C

It will all be outlined in your agreement which I suggest you read carefully. You need to have paid 50% of the Total Amount Payable if you are planning on voluntary terminating the agreement.

Frozen_up_north

You can phone the finance company and ask for a settlement figure, but be careful to point out you are just enquiring. From memory you get a letter with the amount that is valid for a few days.

motorguy

Frozen_up_north wrote: »

You can phone the finance company and ask for a settlement figure, but be careful to point out you are just enquiring. From memory you get a letter with the amount that is valid for a few days.

You can, yes, but thats fairly irrelevant.

A settlement figure wont tell you what the O/P needs to know.

He needs to know :-

• Total cost of agreement (which will be on the agreement he signed) but made up of deposit + total amount financed + interest + fees.
• He then needs to work out what takes him to half way which would be the above amount divided by two (but will also be on the form he signed)
• He then can tell where he is relevant to that by totalling deposit + (monthly payment * months paid).

motorguy

csharma84 wrote: »

Hello folks,

I have a car on PCP finance which I would like to end early but not sure what, if anything, I'd be liable to pay.

The cars price was £30k, I paid a £2k deposit and the monthly cost is £450 for 48 months with an £11k balloon payment. I have so far made 29 payments (£15,050 including the £2k deposit).

I read somewhere that if you've paid half the amount you can return the car under a voluntary termination.. so my question is.. half of which amount?

1. Half of £30k, i.e. £15k?
2. Half of £28k? i.e. £14k?
3. Half of the monthly payments.. i.e. 450*24 months?
4. Half of total payable plus ballon payment = 1/2 * (450*48 +11k) = £16,300
5. None of the above lol

Appreciate any help please. Thanks!

C

5. None of the above.

Your total payable can be worked out from these figures by adding deposit (£2,000) + total of monthly payments (£450 * 48) + balloon payment (£11,000) = £34,600. Then dividing that by 2 = £17,300.

29 payments @ £450 = £13050. Plus the deposit (£2,000) = £15,050 as you correctly said.

£2,250 required to hit the 50% marker which you can either pay directly as a lump sum OR make another 5 payments (£450 * 5 = £2250) and walk away (subject to wear and tear / possible mileage charges)

csharma84

Thank you for your responses, very helpful! I will hold onto the car for another 5 months.

Would a voluntary termination affect my credit history?

neilmcl

csharma84 wrote: »

Thank you for your responses, very helpful! I will hold onto the car for another 5 months.

Would a voluntary termination affect my credit history?

No, it shouldn't but there will be marker placed on your file saying that you have VT'd.