PCP termination costs

Glasgowlad1

Hi,
I am looking to terminate my PCP contract at the end of the month. I have £111 left to pay. I have recieved the termination paperwork but it states that after the car is sold if there is an outstanding balance they will contact me to pay it. So if it goes to auction, sells for less than the price of the finance left, I am liable? Is that correct? It will have a new MOT and is getting a full valet/polish/touch up prior to going back but weighing up options of paying it till August and handing back when contract ends or terminating, but not if means I could pay thousands? Especially in this climate where car prices/sales are near to non existent. 

Thanks 

DrEskimo

What do you mean by terminate? As in Voluntary Termination by paying the 50% of the total amount payable, or do you mean you are reaching the end of the agreed term?

Who is the PCP contract with?

neilmcl

Glasgowlad1 said:

Hi,
I am looking to terminate my PCP contract at the end of the month. I have £111 left to pay. I have recieved the termination paperwork but it states that after the car is sold if there is an outstanding balance they will contact me to pay it. So if it goes to auction, sells for less than the price of the finance left, I am liable? Is that correct? It will have a new MOT and is getting a full valet/polish/touch up prior to going back but weighing up options of paying it till August and handing back when contract ends or terminating, but not if means I could pay thousands? Especially in this climate where car prices/sales are near to non existent. 

Thanks 

Are you talking about voluntary termination or voluntary surrender? 

Glasgowlad1

Hi, termination at 50% point. Barclays finance, they are happy for me to terminate once I pay the £111, which I'm happy with. Car hasnt been used since september and I have a van so it's not required, no point paying more than I have too. However, it's not clear if im going to be liable for costs after car is sold at auction as wording isnt clear on the termination paperwork. Just states that after sale if there are outstanding costs then I will be liable? 
Thanks 

neilmcl

You're not liable for any further costs other than for those for damage or excess wear & tear over and above the BVRLA fair wear & tear guidelines. You're certainly not liable for any loss in value when the car is sold on. I would speak to Barclays finance to confirm.

lopsyfa

Glasgowlad1 said:

Hi, termination at 50% point. Barclays finance, they are happy for me to terminate once I pay the £111, which I'm happy with. Car hasnt been used since september and I have a van so it's not required, no point paying more than I have too. However, it's not clear if im going to be liable for costs after car is sold at auction as wording isnt clear on the termination paperwork. Just states that after sale if there are outstanding costs then I will be liable? 
Thanks 

Are you sure it is voluntary termination Barclays Finance is making you to sign. Please confirm before you sign anything and hand the car back. You should not be liable for anything apart from damage to the vehicle above fair wear and tear and possibly excess mileage charge. 

If you are not sure, you can post a copy of the agreement here redacting personal infos.

molerat

You need not sign anything to VT, in fact it is best not to as you may be tricked in to giving up some of your rights.  Just send a letter exercising your right under the CCA to Voluntarily Terminate your contract and refuse to sign any of their forms.

Glasgowlad1

Hi,
Its definitely a Voluntary Termination, stated in the heading of the paperwork. All I'm required to sign is paperwork to show its drivable, MOT'd and taxed, where I'm taking car back to and when.