Car finance (PCP) and VT

chokolat2

Hi everyone I have question regarding PCP plans and Voluntary Termination which I believe you can do once you have paid 50%

Is the 50% from the total amount including interest or the cash price?

The total including interest is £24,950 so half that is £12,475....currently I am outstanding £13,200.... which leaves a difference of just over £700...
If I settle the extra £700, am I half way then? Or have I got this all wrong?

Hopefully someone can clear this up for me, many thanks

debtdebt

If the £24950 includes the balloon payment, it!!!8217;s half of that figure.

chokolat2

Yes it includes the balloon payment

So I take it my calculation is correct above?
Thanks

nomoneytoday

Usually with a PCP, the "half way VT point" is pretty close to the end of the agreement, due to the weighting of the balloon

neilmcl

chokolat2 wrote: »

Hi everyone I have question regarding PCP plans and Voluntary Termination which I believe you can do once you have paid 50%

Is the 50% from the total amount including interest or the cash price?

The total including interest is £24,950 so half that is £12,475....currently I am outstanding £13,200.... which leaves a difference of just over £700...
If I settle the extra £700, am I half way then? Or have I got this all wrong?

Hopefully someone can clear this up for me, many thanks

If you read your finance agreement it should say exactly what the amount is.