PCP deal, leaving early via Voluntary Termination

BoGoF

Whether you want to admit it or not you are a dealerships dream customer.

When did you get your first PCP deal.....I bet if you added all your monthly payments and any deposits/fees since this date you would see the bigger picture.

Evesham_Hardcore

madvicker wrote: »

But you said so yourself! Your next car has always been lower specced, and a higher monthly premium - for the last 4 deals!. You've successfully managed to pull the wool over your own eyes :eek:

read what I said. at each end for the first TWO, I was at zero. owing nothing. nothing to roll over.

@BoGoF - I've not put deposits down so the monthly I have been paying is the "true" monthly more or less £300. That is the mantra I have, I am happy paying about that much a month for a nice new motor.

That will continue on this term, until I get to the end when I will be at zero again.

Evesham_Hardcore

In fact I have found the contract and, while it doesn't state the words "Voluntary Termination", it says that I may leave the agreement once I've paid half of the total which is c£11k - as Alex said, this is right near the end of the term anyway. Wishful thinking / forum hearsay that it's after 50% of the amount owed not including final payment.

Clearly I could buy myself out of the negative equity but that would make no sense so I'll go to the end.

Thanks for the helpful input from some people

BoGoF

In that case, either what you have had isn't PCP or the cars were not new.

There is no way having paid £2520 for car 1 that you would have been in a position to VT a new car for nil.

DrEskimo

BoGoF wrote: »

In that case, either what you have had isn't PCP or the cars were not new.

There is no way having paid £2520 for car 1 that you would have been in a position to VT a new car for nil.

You need all the figures of each deal, as well as knowing what the best discounts were available.

It's possible the dealer 'wrote off' the negative equity in lieu of giving little/no discount on the next car. They can just offset the total cost by playing around with the two...

Which is why it's important to separate the sale of the old car with the negotiation of the next car. Without having all the figures from each deal and knowing the likely discounts that were available each time/what a fair price for selling the previous car was, it would be impossible to ascertain just how much they have been paying...

OP, if the idea of paying £20k in cash for a brand new car, and then trading it in for just £14k 9-months later, then spending another £20k cash for another new car seems like a completely ludicrous idea, then unfortunately that is exactly what you are doing. You are just borrowing the money to do, so are also paying extortionate amounts of interest as well....

PCP doesn't suddenly make new cars cost less or depreciate less. It's just a way to borrow money....

Evesham_Hardcore

DrEskimo wrote: »

OP, if the idea of paying £20k in cash for a brand new car, and then trading it in for just £14k 9-months later, then spending another £20k cash for another new car seems like a completely ludicrous idea, then unfortunately that is exactly what you are doing.

thanks for the reply, not quite though as I agree that would be pretty luxurious!

The situation I'll be in is that for 3 cars (9months, 11months and probably 36months) I'll have paid ~£300 a month over that whole time. £3,600 a year.

I'm happy with that. I came here asking for VT insight which I have now.

*
For info the reason we went to a monthly scheme was partly due to the initially good deals and partly because as we know owning a car also costs money. My last car was a V50 which we paid £8000 for and sold for £3000. Plus a few big bills it dropped on us, that cost £250 a month over 3 years plus the time and hassle of sorting repairs, glitchy aircon etc, so £50 a month extra for a nice new thing was a step towards luxury for us.

madvicker

Evesham_Hardcore wrote: »

read what I said. at each end for the first TWO, I was at zero. owing nothing. nothing to roll over.

@BoGoF - I've not put deposits down so the monthly I have been paying is the "true" monthly more or less £300. That is the mantra I have, I am happy paying about that much a month for a nice new motor.

That will continue on this term, until I get to the end when I will be at zero again.

There is zero *extra* to pay because you're signing up to a new deal. It is the dealer's discretion to allow you to do so. VT is a right you have that the dealer cannot refuse. Your previous deals could have been refused by the dealer. If you had tried handing the cars back without signing a new deal, guaranteed you would have to have paid the difference between outstanding finance and the GFV of the car you gave back.

I have no issue with how much you choose to pay per month, but what I am trying to point out, is by continually exchanging your car you are getting less and less for your money as the dealer is compromising to allow you to exchange early.

DrEskimo

Evesham_Hardcore wrote: »

thanks for the reply, not quite though as I agree that would be pretty luxurious!

The situation I'll be in is that for 3 cars (9months, 11months and probably 36months) I'll have paid ~£300 a month over that whole time. £3,600 a year.

I'm happy with that. I came here asking for VT insight which I have now.

*
For info the reason we went to a monthly scheme was partly due to the initially good deals and partly because as we know owning a car also costs money. My last car was a V50 which we paid £8000 for and sold for £3000. Plus a few big bills it dropped on us, that cost £250 a month over 3 years plus the time and hassle of sorting repairs, glitchy aircon etc, so £50 a month extra for a nice new thing was a step towards luxury for us.

As I say, without knowing the exact details of each deal it would be very difficult to say exactly how much you were paying. Feel free to post them if you want.

With regards to you old used car, how did you come to the figure of £250 per month? It depreciated £5,000 over 3 years, which is £138 per month? How much did you spend in repairs over the 3yrs? It would have to be in the region of £4k to get up to the average of £250per month figure...

Evesham_Hardcore

madvicker wrote: »

There is zero *extra* to pay because you're signing up to a new deal. It is the dealer's discretion to allow you to do so. VT is a right you have that the dealer cannot refuse. Your previous deals could have been refused by the dealer. If you had tried handing the cars back without signing a new deal, guaranteed you would have to have paid the difference between outstanding finance and the GFV of the car you gave back.

I have no issue with how much you choose to pay per month, but what I am trying to point out, is by continually exchanging your car you are getting less and less for your money as the dealer is compromising to allow you to exchange early.

Well what can I say. Both times the dealer told me "yes you can leave or you can start this other deal." Explicit that I can leave the whole deal with no extra to pay as I almost did that after car1.

Might be worth pointing out that the discount I get through work brings the effective cost of the car down so the initial depreciation wasn't such an impact. So say car went from 20k to 15k, I had £2500 discounted and paid £2500.

That's not so generous now hence my change of plan

Herzlos

Evesham_Hardcore wrote: »

Wishful thinking / forum hearsay that it's after 50% of the amount owed not including final payment.

I don't think anyone ever claimed the final payment wasn't included. The VT point is the whole financed figure, and is usually within a couple of months of the end of the PCP.