VW PCP voluntary termination - advice needed :)

zippyjunky

Hello all!

Not posted on here before so hope this post is in the right area of the forum!

I have a PCP agreement with VW for a 2016 plate Golf. Am looking into a voluntary termination as circumstances have changed and I do not want to spend as much money a month on a car.

Contacted VW Financial Services and asked for a settlement figure. Went to dealership to get car valued, with a plan of giving the car back and paying the difference between the car's value and the settlement. Was told that settlement figures are only used for part-exchanges against a new/used car from dealership. First question - is this correct?

Rang VWFS again to discuss voluntary termination. This is, as I understand it, giving the car back when I have paid at least 50% of the total credit given at the start and not paying anything more (other than excess mileage and repair charges). This is also what my finance contract states (it even includes the actual 50% figure). I asked how much I had paid off to date and was told that I had paid over 50% (got a figure for how much I paid too).
I was then told that I could begin a VT but I would first have to pay a 'shortfall figure' of around £700. This would be to take to the 80% (I think VW guy said) mark of the total credit.
So, second question - if I have paid off more than 50% of the total credit, why do I have to pay this 'shortfall' and what is this £700 actually paying for? Tried to ask the guy this question on the phone and was fobbed off with some chat about collection and fees etc. He really didn't seem to know what it was for either.

Does anybody have any ideas/experience of similar? Any help appreciated.

P.S. Sorry for the long post!

DrEskimo

zippyjunky wrote: »

Hello all!

Not posted on here before so hope this post is in the right area of the forum!

I have a PCP agreement with VW for a 2016 plate Golf. Am looking into a voluntary termination as circumstances have changed and I do not want to spend as much money a month on a car.

Contacted VW Financial Services and asked for a settlement figure. Went to dealership to get car valued, with a plan of giving the car back and paying the difference between the car's value and the settlement. Was told that settlement figures are only used for part-exchanges against a new/used car from dealership. First question - is this correct?

Rang VWFS again to discuss voluntary termination. This is, as I understand it, giving the car back when I have paid at least 50% of the total credit given at the start and not paying anything more (other than excess mileage and repair charges). This is also what my finance contract states (it even includes the actual 50% figure). I asked how much I had paid off to date and was told that I had paid over 50% (got a figure for how much I paid too).
I was then told that I could begin a VT but I would first have to pay a 'shortfall figure' of around £700. This would be to take to the 80% (I think VW guy said) mark of the total credit.
So, second question - if I have paid off more than 50% of the total credit, why do I have to pay this 'shortfall' and what is this £700 actually paying for? Tried to ask the guy this question on the phone and was fobbed off with some chat about collection and fees etc. He really didn't seem to know what it was for either.

Does anybody have any ideas/experience of similar? Any help appreciated.

P.S. Sorry for the long post!

Regarding the first point, yes most dealerships aren't interested in buying cars straight from customers unless it's a part-exchange on a new car.

You can try other avenues though, like WeBuyAnyCar, Evans Halshaw, or your local independent dealers. I also had good experience with a site called Tootle. Took a bit of haggling but I got a good price on my car a year back. Another option is sale or return, which some dealers will do. For a fee, they will advertise the car at an agreed price, and if you sell it, you get the sale price - the fee. If they don't sell it, you pay nothing.

Not sure where the £700 figure is coming from regarding VT. Typically people misunderstand the "50% total payable" as "50% of the monthly repayments", however your explanation suggests you understand it well (i.e. the total is the deposit + monthlies + GFV + interest + fees, and you have to have paid 50% of whatever that number is. It will be listed on your finance documents).

Just challenge it and ask for clarification. AFAIK there is no handling fees to pay. Of course this assumes you can't get a good price on the car relative to your settlement. Presumably you know the settlement figure, and have had a good look online to see what a reasonable price to expect on trade/private sale for your car is?