PCP Voluntary Termination

willLeeds

Hi Guys,
I currently have a PCP agreement with Audi (VW Financial Services) it was the first time buying using PCP and to be honest, I think I was given a real hard sell from good (Bad for me) salesman.

I was very clearly told at the time when buying 'If at any point you want to give the car back, that's fine. You can give it back, the ONLY fee you will pay 6p per mile you are over your millage"

Two years into the PCP deal (4-year deal) and to be honest a bit annoyed about the APR i was paying, i tried to give the car back and was asked for almost £4,000 to end early.

Is this normal? Have I been miss sold? Can anyone advise on what to do next?

boliston

i think the mileage penalty is when to hand it in without paying the balloon - early termination is a 50% rule where you walk away once you have paid 50% - this would have nothing to do with mileage

nelly12

Why didn’t you read the agreement before you signed it?

willLeeds

nelly12 wrote: »

Why didn’t you read the agreement before you signed it?

Everyone makes mistakes - That's why I'm seeking help here

motorguy

willLeeds wrote: »

Everyone makes mistakes - That's why I'm seeking help here

How about reading it now?

motorguy

willLeeds wrote: »

Hi Guys,
I currently have a PCP agreement with Audi (VW Financial Services) it was the first time buying using PCP and to be honest, I think I was given a real hard sell from good (Bad for me) salesman.

I was very clearly told at the time when buying 'If at any point you want to give the car back, that's fine. You can give it back, the ONLY fee you will pay 6p per mile you are over your millage"

Two years into the PCP deal (4-year deal) and to be honest a bit annoyed about the APR i was paying, i tried to give the car back and was asked for almost £4,000 to end early.

Is this normal? Have I been miss sold? Can anyone advise on what to do next?

You can hand it back at the end of the term, and subject to fair wear and tear and excess mileage charges, you've nothing more to pay.

You cant just hand the car back (because in this instance you suddenly dont like the interest rate) at any time with no consequences. You made a 4 year financial commitment to the car.

If you've paid more than 50% (deposit + payments made so far) of the total cost (deposit + interest + admin fees + amount borrowed including residual) then yes, you can walk away (subject to fair wear and tear and excess mileage charges) and thats whats known as a Voluntary Termination and is your right under the Consumer Credit Act.

If you have paid less than 50%, they can pursue you for the difference, which it sounds like they're doing here.

AnotherJoe

What do these figures look like?
1. Aprox value of the car were you to sell it.
2. Settlement figure for the finance.

System

In 2 years you've paid less than 50% of the purchase price of the car, you therefore can't VT and walk away. Your only option if you want rid is to hand the car back and to pay the difference between what they can get for it and what the outstanding finance is to take it to that 50% VT threshold.

boliston

motorguy wrote: »

....
If you've paid more than 50% (deposit + payments made so far) of the total cost (deposit + interest + admin fees + amount borrowed including residual) then yes, you can walk away (subject to fair wear and tear and excess mileage charges)....

VT is statutory rather than contractual so mileage would be totally irrelevant

neilmcl

boliston wrote: »

VT is statutory rather than contractual so mileage would be totally irrelevant

A point yet to be tested in higher court, so as they say, the jury's out on this one.

motorguy

boliston wrote: »

VT is statutory rather than contractual so mileage would be totally irrelevant

I was wholly with you on that however there was a debate on this on another thread and it turns out that finance companies are taking individuals to court on excess mileage and winning.

I wouldnt be assuming any more that a finance company wont pursue it through to a local county court