Getting Rid of PCP Car

Herzlos

Mercdriver said:

LukeLukeLuke said:

Deleted_User said:

Does the finance company lose out when you vt at 50%? They might not earn the interest for the remainder but they will sell the car and get their money back?

I am not sure to be honest. I am not specifically trying to make things difficult for the finance company, so to speak. I simply want to make sure that we are correct from a legal standpoint with VT. 

As it happens, the GMFV ballon that we would have to pay is now higher than the car is currently worth and it has another 15 months on finance. It makes no sense for us to stick with this agreement from a financial perspective, and selling does not seem to be an option for the foreseeable future. 

That poster is correct though.  VT is intended to help people who can't afford the payments on one car not to be in a position where they are chased for the whole finance package, whereas you seem to have the financial resources not only to pay for the new car but also to pay off the finance for the old one.

It's still an option available to them, and more MSE than buying the car from them and selling it at a loss. Will VT be tightened up later? Maybe.

Will VT have an noticeable impact on credit? I understand it's not meant to, but I assume finance companies won't be keen to lend to someone who'd VT'd previously.

LukeLukeLuke

Herzlos said:

Mercdriver said:

LukeLukeLuke said:

Deleted_User said:

Does the finance company lose out when you vt at 50%? They might not earn the interest for the remainder but they will sell the car and get their money back?

I am not sure to be honest. I am not specifically trying to make things difficult for the finance company, so to speak. I simply want to make sure that we are correct from a legal standpoint with VT. 

As it happens, the GMFV ballon that we would have to pay is now higher than the car is currently worth and it has another 15 months on finance. It makes no sense for us to stick with this agreement from a financial perspective, and selling does not seem to be an option for the foreseeable future. 

That poster is correct though.  VT is intended to help people who can't afford the payments on one car not to be in a position where they are chased for the whole finance package, whereas you seem to have the financial resources not only to pay for the new car but also to pay off the finance for the old one.

It's still an option available to them, and more MSE than buying the car from them and selling it at a loss. Will VT be tightened up later? Maybe.

Will VT have an noticeable impact on credit? I understand it's not meant to, but I assume finance companies won't be keen to lend to someone who'd VT'd previously.

What sort of mark does VT leave on the credit file? I am guessing that this will only really be an issue for future Car Finance lenders and not so much for things like credit cards or mortgages? 

lcc86

VT is not meant to be solely for people struggling financially. It's for anyone who wants to hand their car back after they've paid 50% of the total amount payable (including interest, deposit etc). There's nothing that says only specific people can use it and those who want to use it shouldn't be judged for doing so. 

OP just be aware that PSA are one of the stricter companies when it comes to damage. You are basically expected to hand the car back in showroom condition (used to work in their returns dept). Also be very aware of the excess mileage charges, check your contract and calculate it just in case. It's not meant to affect your credit file although having never done it I can't say for sure.

missile

Sounds like a good plan to me :-)

LukeLukeLuke

lcc86 said:

VT is not meant to be solely for people struggling financially. It's for anyone who wants to hand their car back after they've paid 50% of the total amount payable (including interest, deposit etc). There's nothing that says only specific people can use it and those who want to use it shouldn't be judged for doing so. 

OP just be aware that PSA are one of the stricter companies when it comes to damage. You are basically expected to hand the car back in showroom condition (used to work in their returns dept). Also be very aware of the excess mileage charges, check your contract and calculate it just in case. It's not meant to affect your credit file although having never done it I can't say for sure.

Thanks for this information. The car is in good condition other than a few marks on the boot near the latch. I am hoping these marks won't be too expensive when PSA assess them. 

I have checked the excess mileage in the contract and understand what the cost should be. This is fine as we have gone above what we had on the contract, so it's only fair we pay for the excess. 

Thanks for the help. I'm not too sure why it would affect the credit file to be honest. We wouldn't have missed payments but would have instead just exercised a legal right. 

Herzlos

I don't think it can be recorded in a credit file, but I'm not sure how it works.

I assume any company you VT with will keep a record of it and won't be keen to give you a good deal on a future agreement.

neilmcl

Herzlos said:

I don't think it can be recorded in a credit file, but I'm not sure how it works.

I assume any company you VT with will keep a record of it and won't be keen to give you a good deal on a future agreement.

It is recorded, but for reference only. It has no detrimental affect other than other finance companies seeing  it and maybe deciding not to offer a PCP in future, but this is pretty rare unless you VT a lot.

MinuteNoodles

LukeLukeLuke said:

Thanks for this information. The car is in good condition other than a few marks on the boot near the latch.

If these are really light scratches such as from finger nails etc then get some T-Cut and give it a light rub over and it should either get rid of them or reduce their intensity.

LukeLukeLuke

neilmcl said:

Herzlos said:

I don't think it can be recorded in a credit file, but I'm not sure how it works.

I assume any company you VT with will keep a record of it and won't be keen to give you a good deal on a future agreement.

It is recorded, but for reference only. It has no detrimental affect other than other finance companies seeing  it and maybe deciding not to offer a PCP in future, but this is pretty rare unless you VT a lot.

Thanks both for this info. That's not a problem as we certainly do not plan to take another PCP with PSA finance. 

LukeLukeLuke

MinuteNoodles said:

LukeLukeLuke said:

Thanks for this information. The car is in good condition other than a few marks on the boot near the latch.

If these are really light scratches such as from finger nails etc then get some T-Cut and give it a light rub over and it should either get rid of them or reduce their intensity.

Unfortunately, they're more like chips than scratches (I didn't describe them very well). I think they're marks from where the boot gets slammed or they could be due to some rubbing or contact from a bike carrier (albeit we only used one a handful of times).

The guy at WBAC was convinced there was nothing we could do to fix them other than paint the whole car, even though they're genuinely pretty small. I'll have to ask somebody who isn't trying to drive money off the value of the car!