PCP - Voluntary Terminating Contract

grangers72

I have written to my provider to advise my decision for the voluntary termination of my PCP agreement - I got the car for my job but it is not needed due to the issues we are currently facing and being laid off. I have 7 months left of a four year contract, never missed a payment and all up to date. I was hoping someone could take a quick look the quote from the supplier - it's not the best written document I've ever read and two weeks of inactivity for the grey matter and I'm struggling to compute - does the below read that if i do voluntary terminate - there is nothing to pay? 

Thank you for your recent enquiry about voluntary terminating your finance agreement with us. If you decide to voluntary terminate, the total amount payable under the agreement will be due immediately.
Total amount due to voluntary terminate: £0.00

This quotation is valid until: 24 April 2020 Voluntary terminating your agreement may not be the most beneficial option for you to pursue. Depending on the remaining balance on your agreement and the market value of your vehicle, you may have equity in your vehicle, making it more beneficial for you to part exchange the vehicle or settle the agreement. Before making a decision, you may wish to consult your retailer to explore which option is most beneficial to you. Below is a settlement figure, this is valid until 9 May 2020.
Total amount due to settle the agreement: (including any arrears) £ 8,532.92 

ToxicWomble

That’s what it looks like or you can pay £8500 and the cars is yours.

We are currently trying to arrange settling for our car when the deal ends at end May and it’s like getting blood out of a stone finding out exactly how to pay them so at least it sounds as your finance company are at least responding sensibly to your enquiries 

DrEskimo

Yes, if you VT you will have nothing left to pay from the finance point if view. You may however still be liable for damages beyond fair wear and tear and excess mileages. This is a bit of a grey area when it comes to VT though....

The second part merely states that your car may actually have a market value more than your finance owed (in this case, if you pay £8,532.92, you will own the car with nothing further to pay). It may be that a garage will offer you £10,000 to buy it off you, meaning they settle the £8,532.92 and then you get a cheque for £1,467.08. This will be based in its current mileage and condition, so no worries about paying additional costs either. 

However, given the current climate that is extremely unlikely. Do you think the car in a 'normal market' would be worth more than £8,500? Could you not hold on to it to try and sell it to benefit from that additional equity, rather than be forced to VT due to the current climate?

facade

There will be nothing to pay if you VT now, except for repairs to any damage beyond industry accepted wear & tear, any required mechanical repairs, an excess mileage charge if you have gone pro-rata over your agreement, or compensation for any overdue services, as all these will count as not taking care of the vehicle & returning it in good order.

If nothing above applies, then yes, you will have nothing to pay.

AdrianC

grangers72 said:

I have written to my provider to advise my decision for the voluntary termination of my PCP agreement - I got the car for my job but it is not needed due to the issues we are currently facing and being laid off. I have 7 months left of a four year contract, never missed a payment and all up to date. I was hoping someone could take a quick look the quote from the supplier - it's not the best written document I've ever read and two weeks of inactivity for the grey matter and I'm struggling to compute - does the below read that if i do voluntary terminate - there is nothing to pay? 

Thank you for your recent enquiry about voluntary terminating your finance agreement with us. If you decide to voluntary terminate, the total amount payable under the agreement will be due immediately.
Total amount due to voluntary terminate: £0.00

This quotation is valid until: 24 April 2020 Voluntary terminating your agreement may not be the most beneficial option for you to pursue. Depending on the remaining balance on your agreement and the market value of your vehicle, you may have equity in your vehicle, making it more beneficial for you to part exchange the vehicle or settle the agreement. Before making a decision, you may wish to consult your retailer to explore which option is most beneficial to you. Below is a settlement figure, this is valid until 9 May 2020.
Total amount due to settle the agreement: (including any arrears) £ 8,532.92 

Hand the car back = £0.
"Settle" = buy out of the finance, keep the car = £8,532.92

If the car's worth £9k, then you can immediately sell it, and you're ~£470 up.

born_again

And remember that no companies are picking up cars at the moment. So it will be left with you till they can come and pick it up.

dannyrst

born_again said:

And remember that no companies are picking up cars at the moment. So it will be left with you till they can come and pick it up.

Indeed, and based on some of the wording of the lease contracts on here, there's a chance you'll have to cover insurance for the vehicle whilst not yours. Check your contract wording and discuss with the dealer.