Terminating PCP Early

TeeMac67

Can anyone help please? My son has a car on PCP that he took out just over 2 years ago. The contract us up until September 2019 and he now has the opportunity to work abroad in May 2019. Does anyone know if there is any possibility of terminating this early with no charge. I read a little about Voluntary Termination but the information was a little vague and just wanted to check possibilities before proceeding with this. Effectively, he will be handing the car back 4 months early but ideally does not want to pay for 4 months when he will not have the car. Any help would be greatly appreciated. Thanks.

neilmcl

You can only VT a car once you've paid 50% or more of the Total Amount Payable. This figure will be highlighted in your son's finance agreement.

Have a read - https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

TeeMac67

Great - Thanks - I will look out the Finance Agreement

tonyh66

4 months will probably be ok, as mentioned by post #2 he will probably be over the 50% mark.

pramsay13

Just phone the finance company and ask if you have reached the voluntary termination point.
They can also give you a settlement figure which you can use to pay off the finance and you would own the car and can then sell it privately.
Depending on the value of the car that might be worthwhile.

TeeMac67

Awesome - hopefully that will save him a few months - unfortunately he won't be in a position to buy the car :-(