Early hand back of car on PCP

ewan.brown967

[FONT=&quot]Hello[/FONT]
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[FONT=&quot]I've just bought a new car and as part of that process I've handed back my old car to the finance company 3 months early. The old finance company told me this will show up as a black mark on my credit report as I've handed the car back this way. So, if the finance rules allow me to hand the car back once I've paid 50% or more of the agreement, why should I get a black mark on my credit report?[/FONT]
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[FONT=&quot]But more importantly, what impact is this likely to have on my ability to get future credit?
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[FONT=&quot]Thank you.
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System

You won't get a black mark. It'll be marked as settled, outstanding balance £0, no explanation as to how or why. They're trying to frighten you into not VTing.

neilmcl

Did the OP VT though? My reading of his post is that the finance was settled on the car as part of the process of buying the new one, presumably by the selling dealership.

AdrianC

neilmcl wrote: »

Did the OP VT though? My reading of his post is that the finance was settled on the car as part of the process of buying the new one, presumably by the selling dealership.

Assuming the new car's PCP is through the same financier, it may be - but the OP refers to "the old finance company".

neilmcl

AdrianC wrote: »

Assuming the new car's PCP is through the same financier, it may be - but the OP refers to "the old finance company".

I don't see that making any difference. If "part of the process" of getting his new car was for the dealer to take his old car as part-exchange and to to settle the finance then I don't see whether it's the same or different financier matters.

AdrianC

It's very different if the old financier and the new financier are the same - because they're simply continuing the account, just extending the term and changing the car.

If they're different, then the old financier are closing the account.

motorguy

AdrianC wrote: »

It's very different if the old financier and the new financier are the same - because they're simply continuing the account, just extending the term and changing the car.

If they're different, then the old financier are closing the account.

I'd be surprised, given the finance is linked to the car. They'd close off that account and start a new one, albeit with a known customer.

Hardly matters either way, given it'll be stored in some big relational database somewhere.

motorguy

neilmcl wrote: »

Did the OP VT though? My reading of his post is that the finance was settled on the car as part of the process of buying the new one, presumably by the selling dealership.

I think the car has been VT'd, and the O/P has bought another car

sheramber

Has the car been VT or has the OP just ' handed it back'?

Perhaps he could confirm

Robby1988

Car finance providers don’t like voluntary terminations. Although it’s a consumer right, ultimately it’s a failure on your behalf to see out the contract you had with them.

You haven’t missed payments or anything so your credit score isn’t going to take a battering, but you may encounter difficulties being approved for car finance again I future.

Could you not have waited another 3 months to get a car?

neilmcl

AdrianC wrote: »

It's very different if the old financier and the new financier are the same - because they're simply continuing the account, just extending the term and changing the car.

If they're different, then the old financier are closing the account.

That's not how it works. The term for a new car doesn't get extended, a brand new agreement will be created.