Handing car back on PCP

Aquitanium

Hello all,
I’m paying monthly for a car, over four years. I’m about 18 months in at this point. It’s possible I’ll be out of a job in a few months as work has slowly decreased since new owners took over. 

To cut to the chase, what would I be able to do in terms of handing back my car to the dealership? 

I’ve read all about voluntary termination but that requires more than 50% paid off which I haven’t.
Has anyone else had a car with Vauxhall finance and been able to hand the car back without paying any extra money?

Thanks. 

jonesMUFCforever

What is the realistic worth of the car now if you COULD sell it against what is left on the finance?
Do you have any savings to make any difference up?
I have never had Vauxhall finance so can't comment specifically on this.

DrEskimo

Yea you have two options, trade/sell the car and settle the finance and potentially pay any shortfall, or work out the 50% of the total payable and calculate the shortfall needed to VT. Whichever is the cheapest method is the one to go for. 

Make sure you get as many quotes for the trade in of the car. They will vary massively from dealers, online brokers and indie garages. 

ryanadam06

Have you read the financing company's terms&conditions thoroughly? I did the same mistake while owing the first car and encountered a lot of inconveniences.

foxy-stoat

Aquitanium said:

Has anyone else had a car with Vauxhall finance and been able to hand the car back without paying any extra money?

You can VT at any time, if you havent reached 50% and you do not pay the lender then expect your credit file to be trashed and have a CCJ against you, along with being chased for the outstanding.

Are you expecting not to get any further employment after you get laid off?

amandacat

If you hand back the car to Vauxhall this will likely be the most expensive option. Check what is left on the finance by requesting a settlement figure and get some quotes for it’s current value- webuyanycar website may be a good starting point if you enter your car details in their website. That will give you an idea what any shortfall might be against the current finance left (if any). Places like webuyanycar or Evans Halshaw will pay off against your finance for you. I’m not advocating these as the best option as you may get a better price elsewhere,  just as a starting point to see if you are likely to be in positive or negative equity. 
My sister was in a similar situation and found returning it to the original dealer would be the most costly option but still worth checking you with the dealer too as they may be different to the one used by my sis. 

DCFC79

Aquitanium said:

Hello all,
I’m paying monthly for a car, over four years. I’m about 18 months in at this point. It’s possible I’ll be out of a job in a few months as work has slowly decreased since new owners took over. 

To cut to the chase, what would I be able to do in terms of handing back my car to the dealership? 

I’ve read all about voluntary termination but that requires more than 50% paid off which I haven’t.
Has anyone else had a car with Vauxhall finance and been able to hand the car back without paying any extra money?

Thanks. 

Still got the agreement, that could help.

MEM62

Your options are limited.  You could try to sell the car if you think that the market value will clear the outstanding finance. Or you could start looking for another job - which, even without the car finance issue, would be the prudent course of action anyway based on your suspicions.  

Aquitanium

Thanks for all the suggestions. Current market value seems to be between £10,000 - £11,000. Outstanding amount £15,688. Work wise I’ve since heard good things so not as much as a worry anymore. 

Does a VT after 50% paid off affect credit score at all?

DrEskimo

Aquitanium said:

Thanks for all the suggestions. Current market value seems to be between £10,000 - £11,000. Outstanding amount £15,688. Work wise I’ve since heard good things so not as much as a worry anymore. 

Does a VT after 50% paid off affect credit score at all?

Is that the settlement figure, or total amount left to pay (including interest charges)?
How much was the car when you bought it? Nearly £6k shortfall is a large drop in value after just 18months?

As I understand it, it will just show as a terminated contract, but won't state why. As such, it should have no impact on your credit worthiness. It's worth noting that a 'credit score' is generally meaningless. Lenders do not see this score and therefore do not use it to determine how credit worthy you are. They base their decisions on your credit history.