PCP Termination

richardtock

Hi

A lot of naivety has landed me in a bit of a silly situation. I was hoping I could receive some advice here.

I renewed my PCP last year on a three year deal. It's a Hyundai i10.

I quite like the car, even though I am definitely paying above the odds (about £160 a month) and I should have bought myself a cheap little second hand car.

The problem is, I've been offered a job abroad. I talked to the finance company and they suggested that I could do a thing called voluntary withdraw. Great, I thought. Except they priced this for me at £4,000! When I took out the agreement, I suggested to the salesman that this could happen, and he suggested it shouldn't cost me much more than a grand.

They said the only other option was either private sale or sell it back to the dealership. The dealership seem hugely uninterested in this.

Have I completely stuffed myself here?

[I suspect the answer maybe yes ]

molerat

Voluntary Termination means you have to pay, or already have paid, half the total agreement price. One year into a 4 year PCP will unlikely be anywhere near that figure as you have found.


The next option is a settlement. The finance co will tell you how much you need to pay to end the agreement and own the car. That will show how close you are with selling the car privately or to a garage or WBAC.

foxy-stoat

richardtock wrote: »

he suggested it shouldn't cost me much more than a grand.

Not sure how he plucked that figure out the air, I know why he did.

Either pay the £4K or you will have to continue the monthly repayments until you reach 50% of the total purchase price - which should be in another 25 months....so in reality you where only going to reach the 50% - £1000 point on month 30 out of 36.