PCP and voluntary termination

Lennsh

Hi all, this a first post for me, thank you in advance for reading and for any responses.

I’m after some advice around PCP and Voluntary Termination (VT). We’ve got a 2014 Nissan Qashqai on PCP which is due to end in May, the finance is through Close Brothers.

Stupidly, I wasn’t aware of the importance and relevance of the service in relation to the agreement. It’s missed some services and we can’t find the service book either. Mileage will be fine and I can sort any little scratches out. I’m thinking, would it be in our interests to VT to avoid any additional charges?

Is there a time limit on when you can VT in relation to the end date, as I write it’s only 5months away.

Any advice gratefully received.

motorguy

Lennsh wrote: »

Hi all, this a first post for me, thank you in advance for reading and for any responses.

I’m after some advice around PCP and Voluntary Termination (VT). We’ve got a 2014 Nissan Qashqai on PCP which is due to end in May, the finance is through Close Brothers.

Stupidly, I wasn’t aware of the importance and relevance of the service in relation to the agreement. It’s missed some services and we can’t find the service book either. Mileage will be fine and I can sort any little scratches out. I’m thinking, would it be in our interests to VT to avoid any additional charges?

Is there a time limit on when you can VT in relation to the end date, as I write it’s only 5months away.

Any advice gratefully received.

Were you otherwise proposing handing the car back at the end of term? Do you no longer need a car?

I think if you VT it, they are as likely to pursue you for further money as if you handed the car back at the end of the term - i think both are subject to "fair wear and tear" guidelines.

Chances are the car "should" make roughly whats owed on it come the end of the term, therefore you could just trade it in against your next car OR if its otherwise going well and it continues to suit your needs, pay the final payment either with cash or a cheap loan.

Lennsh

Cheers, will need another car so was planning on giving back and finding a lease or pcp elsewhere or putting it against another! Another question, do you know if a new pcp against another car would have to be from the original garage or a Nissan dealer or just anywhere? Many thanks

TadleyBaggie

A new PCP deal could be from anywhere, unless you were hoping that the old car might be worth more than the GMV and use the balance towards a new one.

motorguy

Lennsh wrote: »

Cheers, will need another car so was planning on giving back and finding a lease or pcp elsewhere or putting it against another! Another question, do you know if a new pcp against another car would have to be from the original garage or a Nissan dealer or just anywhere? Many thanks

As above, anywhere. You can trade the car in and it works just like if you'd regular finance, so you just get a settlement figure.

We'd a Z4 a number of years ago on PCP and planned to hand it back. It needed an alloy wheel resprayed and had a couple of really nasty stonechips on the bonnet so we'd have been liable for some extra charges. We traded it in though and got the settlement / residual figure value of the car and the dealer was happy to do the work themselves.

Lennsh

Ah ok, thank you both for that, could that be done before the end of the term or only at the end? I guess they’d need the outstanding figure from the finance? Do you see the servicing issues as a problem?

neilmcl

Yes, the lack of servicing is going to be an issue and a VT wont avoid any potential charges as a result.

Nasqueron

If you were going to lease or PCP a new one, why not just pay off this one and save money?

neilmcl

Nasqueron wrote: »

If you were going to lease or PCP a new one, why not just pay off this one and save money?

Because the OP is hoping to get out of paying what is due

Lennsh

How would that save me money? Because I don’t have the money for the balloon available and thinking i’ll get my pants pulled down over the service book

motorguy

Lennsh wrote: »

Ah ok, thank you both for that, could that be done before the end of the term or only at the end? I guess they’d need the outstanding figure from the finance? Do you see the servicing issues as a problem?

Yes, you can do that at any time.

Its up to the dealer to check the service history and value the car accordingly. He may or may not do that. There shouldnt be a whole pile of difference in the value.