PCP missold policy and now stuck with mileage charges

marlot

Willingwisp wrote: »

...
I'm following to try and determine what is the best thing to do. Currently my thoughts are;
1. Get a current settlement figure and pay with a bank loan then potentially sell on
2. Keep the car until the 3 year point, hand it back get a loan for the mileage and get a new car
3. VT the PCP...

All three options lock you into more debt!



Why not wait to the end of the PCP, pay the balloon payment and keep the car? You could get a loan if you need to, but it gets you off the PCP treadmill.


If you're paying the ballon payment then there is no excess mileage to pay, nor any charges for minor damage.

motorguy

Mercdriver wrote: »

At 18 months through a 3 year deal, you won't be able to VT. You can VT when you have paid 50% of the amount covered by the agreement. It is not 50% through the term. On most PCPs that is close to the end o the 3 years.

Just for clarity. You can VT at ANY time. You can VT the day after you get the car if you like.

HOWEVER, the finance company can only pursue you for 50% of the total cost of the agreement.

foxy-stoat

motorguy wrote: »

Just for clarity. You can VT at ANY time. You can VT the day after you get the car if you like.

HOWEVER, the finance company can only pursue you for 50% of the total cost of the agreement.

Just need to clarify that if you VT'd at any time and you do not have the money to paid 50% of the total deal, plus (possible) excess mileage charges then your credit file will be trashed for 6 years.

neilmcl

foxy-stoat wrote: »

Just need to clarify that if you VT'd at any time and you do not have the money to paid 50% of the total deal, plus (possible) excess mileage charges then your credit file will be trashed for 6 years.

You're missing the point. You can VT at any time and all you are liable for is 50% of the total amount payable, regardless of whether you've reached that point or not. Your credit file will be "trashed" only if you fail to then pay off that liability.

foxy-stoat

neilmcl wrote: »

You're missing the point. You can VT at any time and all you are liable for is 50% of the total amount payable, regardless of whether you've reached that point or not. Your credit file will be "trashed" only if you fail to then pay off that liability.

Surely that was the purpose of my post.

Mercdriver

motorguy wrote: »

Just for clarity. You can VT at ANY time. You can VT the day after you get the car if you like.

HOWEVER, the finance company can only pursue you for 50% of the total cost of the agreement.

Indeed. I wouldn't however just drop off the car without paying anything to the finance company if it is before the 50% payment of everything on the agreement as it will lead to them playing hardball I suspect which was foxy stoat's point, and many many people come on here thinking it is 50% of the time through as they don't really understand.