PCP Voluntary Termination concern

davidobee

Dear all

I am hoping you can help me with my concerns and assist me on selecting the best option.
I have recently been successful in starting a new job. This includes a company car. I did not select the company car at first as I would use my own but for convenience I have now ordered one.

My concern is my current car is on PCP with Ford. This is my second car and I have been with them for over five years never missing a payment. I have completed 37/48 months of the finance duration and am not sure what is the best option for me.

I am aware of the voluntary contract termination, however I am 23 years of age and do not want it to affect my credit rating. Browsing online it 'shouldn't' although companies are within their right to interpret the VT in their own way.

I have advertised the car privately, although would ideally like it gone shortly after the arrival of my new car to reduce any further costs of mine.

Handing the car back, Ford suggested they would offer in the region of £500-1000 less than the value remaining of the car and I do not want to cover that amount of costs. Autotrader value the car in the region of £4,500 so this is a big hit.

Ultimately, my question is: Would voluntary termination of my contract cause a problem in the future for my credit rating? and Would there be any further costs after VT? I have read online they tend to make your life difficult!

Thank you for your help.

BoGoF

I have VT'd a couple of times and never had problems getting credit afterwards.

Potential costs after VT includes possible excess mileage charges, charges for dents, scratches etc deemed to be outwith 'fair wear and tear'.

davidobee

That is interesting. Thank you for your response. I am happy with the cars condition, my concern is the reviews I have been reading online. I will simply ensure all photographs are taken, logbooks are scanned and all relevant documents are saved.

BoGoF

The problem with online reviews is that you only get one side. After I vt'd my last car I was fully expecting a bill for damaged alloys which I could not complain about because I did it but thankfully nothing ever came of it.

davidobee

I completely agree. Nevertheless, this is a new experience for me and not something I have ever looked in detail about. The last thing I want is my credit file being affected.

BoGoF

I think there is anecdotal evidence that, maybe (and I stress maybe) a chance that it may slightly reduce your chance of getting any car on finance as finance companies don't like the prospect of VT. How true this is I'm not sure but seeing as you are getting a company car it's not really an issue for you.

davidobee

Yes, if it would solely affect car finance then this is not the end of the world. My cause for concern is a mortgage. I am financially stable and seeking to get my feet onto the property ladder.

BoGoF

I don't think a mortgage company would care if you VT'd a car.