Bad PCP choices catching up with me

AC55

I passed my driving test in October 2018, and a couple of weeks later took out a PCP deal which I have since regretted. Lessons learned for sure..

So an overview:
Car: Vauxhall Viva SE 2018 model
Payments: £156.24
Interest (the bit I regret not paying attention to!) - 13.5%
Early settlement fee: £6291.35 (I have another £156.24 payment going out on monday which will reduce this a bit from then)
Rebate of charges if settle early: £1689.59
Duration: 48 months

I want out of this very high interest PCP contract. I think it's high interest as when I entered into the contract my credit rating could have been better as I didnt have many credit agreements at the time, however I admit I could have looked around more but was tied up in the excitement of getting my first car. I dont want to be paying 13.5% on such a low value car though. And for my monthly payments I'm paying at the moment I can have a better spec car.

So the point of my question is, what can I do?
If I went to a dealer with this settlement, would any deals be available to me or would I re-enter into another deal afresh.
Upon paying the settlement fee, is the car mine or do I need to return it?
Then comes the question of paying the settlement, I don't have 6k stored away currently, so would most likely have to take a loan out to clear it as I dont think there would be any other options?

Thanks in advance :money:

foxy-stoat

Doesnt look correct. 48 payments of £156.24 plus the balloon payment and the car is yours.

Have they quoted you the 50% point and you hand the car back?

AC55

I think its correct as on the vauxhall finance website its said I've paid £2187.36 so far, and that I owe £7980.94. The settlement figure is £7980.94 less the interest. So that equals the £6000ish figure.

Its displayed in a pie chart too which would suggest the whole payment rather than half.

foxy-stoat

What was the terms of the PCP - what was the balloon payment when you took out the finance?

Are you sure its not HP?

motorguy

AC55 wrote: »

I think its correct as on the vauxhall finance website its said I've paid £2187.36 so far, and that I owe £7980.94. The settlement figure is £7980.94 less the interest. So that equals the £6000ish figure.

Its displayed in a pie chart too which would suggest the whole payment rather than half.

You could take out a cheap loan for the settlement figure, thus saving yourself £,£££ in interest and meaning you own the car at the end of the term.

Please, please, please, dont go back to the dealer with your "problem". He'll find some way to rope you in to another inappropriate deal and make it look palatable.

motorguy

The other option is to keep paying the payments until you've reached the 50% marker and can hand the car back with nothing further to pay.

£150 ish a month isnt an unreasonable amount for a car if you simply treat it as a rental.

born_again

I would contact them, not just look on website to get a accurate settlement figure. Then look at how much a loan would cost to pay off, unless you have the cash already.