return PCP car affect credit score?

Joeread

Hi All

I have 10months left on my PCP car and I have realised that it is a waste of money. Will it affect my credit score if i return it? Or put a mark on my credit file?

Thank You

[Deleted User]

Nothing will affect your credit score as it isn’t a real number.

Please read the forums and in particular the “What your credit score really means” sticky.

TadleyBaggie

Joeread wrote: »

I have 10months left on my PCP car and I have realised that it is a waste of money. Will it affect my credit score if i return it? Or put a mark on my credit file?

Return it how? You are probably not far enough in to VT it. If you just fail to make further payments (and so initiate a repossession) then I would fully expect a late payment followed by a default placed on your credit file. Court action may follow and result in a CCJ.

welly_59

TadleyBaggie wrote: »

Return it how? You are probably not far enough in to VT it. If you just fail to make further payments (and so initiate a repossession) then I would fully expect a late payment followed by a default placed on your credit file. Court action may follow and result in a CCJ.

he has 10 months left, hes probably way over the halfway point of payments at this stage

molerat

welly_59 wrote: »

he has 10 months left, hes probably way over the halfway point of payments at this stage

I would say only a 50/50 chance, the people who work out car finance aren't stupid

welly_59

It's going to spend on the balloon payment at the end

DCFC79

welly_59 wrote: »

he has 10 months left, hes probably way over the halfway point of payments at this stage

Maybe Tadley made the same error I did and read it as the OP was 10 months into the contract and not 10 months left.

TadleyBaggie

DCFC79 wrote: »

Maybe Tadley made the same error I did and read it as the OP was 10 months into the contract and not 10 months left.

Nope. The usual rule of thumb with PCP is that the halfway point isn't reached until almost the end due to the balloon payment.

TadleyBaggie

As an example I looked at a PCP deal I had taken out a few years ago, according to the figures my half way point would be reached after month 33 (of a 36 month term).

Nasqueron

Remember that PCP has the balloon payment included in the total you must reach for 50% to VT


Imagine a 0% a car deal for simplicity with £20000 car cost


£500 deposit, GMV of say £7500 (which is your balloon).


36 months payment of £333.33


You don't get to 50% (£10,166.57) until month 29