PCP Vs Contract Hire

alienuk

Hi - I took a car on PCP (which I thought during the time of purchase) for 2 years. There is 6 months left in the contract and thought I will do a part exchange at Arnold Clarke on another vehicle that I liked.
Speaking with AK, they came back saying that my vehicle was bought on contract hire and it need to go back to the finance company after the term. I don't like to moan or complain about this as this is something i should have read before entering into the contract.
I was wondering if there is anything that i can do to finish the contract early ? Obviously I have to speak to the finance provider but thought i will ask the forum members on this case and the likely negotiation that the financier will bring to the table.
Appreciate your time and response.

Cetshwayo

Whatever you want to do that varies the contract will cost you money. Let the contract conclude, fix any dings or scrapes and hand it back at the end if the lease.

neilmcl

alienuk wrote: »

Hi - I took a car on PCP (which I thought during the time of purchase) for 2 years. There is 6 months left in the contract and thought I will do a part exchange at Arnold Clarke on another vehicle that I liked.
Speaking with AK, they came back saying that my vehicle was bought on contract hire and it need to go back to the finance company after the term. I don't like to moan or complain about this as this is something i should have read before entering into the contract.
I was wondering if there is anything that i can do to finish the contract early ? Obviously I have to speak to the finance provider but thought i will ask the forum members on this case and the likely negotiation that the financier will bring to the table.
Appreciate your time and response.

Well if it is on contract hire then there's no finance involved, you're leasing the car plain and simple, and whilst it is possible to end the lease early there will be a large penalty to pay. It's going to be much easier on your pocket to see the hire term through to conclusion, and next time do read and understand what you're signing up to.

maninthestreet

FYI, I have an AUDI on contract hire for two years. I asked for an early termination quote, and they (Audi Finance) told me for early terminations in the final year of the contract it was 55% of the remaining payments.

JP1978

OP, have you physically checked your paperwork so you are sure that its on Contract Hire and not PCP?

Any mention of balloon payments at the end of the contract when you signed up etc?

k3lvc

alienuk wrote: »

Speaking with AK, they came back saying that my vehicle was bought on contract hire and it need to go back to the finance company after the term. I don't like to moan or complain about this as this is something i should have read before entering into the contract.

Hopefully a mistake you won't make again. Out of interest was the original deal via Arnold Clark ? if so it may give you some idea why it may be better to avoid them in future.

maninthestreet wrote: »

FYI, I have an AUDI on contract hire for two years. I asked for an early termination quote, and they (Audi Finance) told me for early terminations in the final year of the contract it was 55% of the remaining payments.

My last Alfa one (via Fiat Auto Contracts) was 40% - was well worth doing 3 months from end to avoid major service and 4 new tyres

alienuk

Good spot - I paid advance hire payment in Month 1 followed by equal monthly hire payments.

alienuk

IT is through Nationwide Vehicle contract.

alienuk

The contract hire is only for 24 months and I expect them not to charge me for their 'usual' suspects like new tyres and minor scuffs.
Do I have rights to claim my rights through BVLRA?