PCP Nightmare - Advice please

neilmcl

Markp0766 wrote: »

Hi my daughter has same problem she is £900 of the 50% if she pays that in a lump sum could she then ask to trigger VT?

Yes she can trigger a VT at any time, her liability will then be 50% of the total amount payable.

motorguy

Markp0766 wrote: »

Hi my daughter has same problem she is £900 of the 50% if she pays that in a lump sum could she then ask to trigger VT?

As per what Neil said but also she doesnt ask for a VT - its her right to do so. There are VT letter templates if you google them that she can use. Also, they may send her a "VT pack" to sign and return. She must not do this. There will be wording in it the revokes some of her rights.

Is she over her (pro rata'd) miles? Is there any damage to the car that could be considered above fair wear and tear?

Theres a link to a copy of the BVRLA Guidelines on fair wear and tear that they will apply

https://www.fleetalliance.co.uk/fair-wear-and-tear-guide/

bearcat16

Don’t forget you don’t need to go through voluntary termination to end the agreement, often it’s not the most cost effective way as the dealer will likely value your vehicle at less than you would get selling it privately.

You could simply get a settlement figure from your finance company, say that’s £10k. Then get a personal loan for £10k (or use savings if you have them) and pay off the finance in full. You will then legally own the car, free and clear.

You’ll then be free to sell the car for whatever price you can achieve (which is likely to be better then the dealer values it), and use the proceeds to reduce the balance on your loan.

caverncity

similar here with my daughter who I told not to go and get a car on PCP, she said she didnt but after finally looking at her paperwork she did. She thought it was HP. She owes £13000 with a settlement of £11000, car is worth £8000 I looked at the VT route and it does say on the form 50% which is around £8500, shes only paid £4500 so will have to find the rest or keep it a bit longer.

jezzer_72

Surely the point of the VT is that it cannot be triggered if you do not reach the 50% value mark. The fact that the VT was triggered means you must assume 50% has been reached. In which case you shouldn't owe anything. If not you wouldn't be able to VT (contract terms dependant)? That has always been my understanding.

I think the dealer has advised you poorly but it seems something is strange with what is being requested.

AdrianC

You CAN trigger VT below 50% paid... but only if you pay in the difference to the 50% point.

jezzer_72

You wouldn't do that though unless you really didn't want the car. So i assume his advice was poor.

Mercdriver

jezzer_72 wrote: »

You wouldn't do that though unless you really didn't want the car. So i assume his advice was poor.

There are many reasons to VT. It is really intended to help those who are out of funds to withdraw from the agreement. The fact that many are using it in order to restart another agreement, means that the finance companies are getting stricter with the rules.

motorguy

Mercdriver wrote: »

There are many reasons to VT. It is really intended to help those who are out of funds to withdraw from the agreement. The fact that many are using it in order to restart another agreement, means that the finance companies are getting stricter with the rules.

Thats pretty much it in a nutshell. It was introduced at a time when finance companies where pursuing people for disproportionate amounts of money when they had to return their car because they could not longer pay. It gave people protection.

The problem is nowadays some people use it when they "just fancy a change" or as a way to allow them to get out of excess mileage charges. And yes finance companies have started tightening up greatly on it - and understandably so.