Voluntary Termination on car finance (PCF Bank)

DanBee

Good afternoon. Hopefully I've posted this in the correct section as I couldn't see one aimed at car finance.

I have had my current car finance agreement running for around 3 and a half years. When I took out the agreement, my credit rating was shockingly low for various reasons so I have probably paying over the odds in interest but I was stuck in a pickle and very limited options. Since then, I have worked hard to improve my finances (one of them was to get divorced  ) and improved my credit score from 174 to a stable 508 for the last 6-9 months.

Now my circumstances have changed for the better, I want to change my car to a bigger one because my current one isn't suitable to our family's needs and obviously my increased credit score should mean I could get a much better interest rate.
How would I go about doing a voluntary termination on the agreement? Unfortunately due to the interest rate, there is more outstanding than the car is worth but I have passed the 50% mark by some margin. 

Has anyone had any experience doing this with PCF Bank in particular?

Thanks in advance. 

[Deleted User]

It's as simple as reading your contract to see what it says about VT, call PCF and ask what the settlement cost would be for a VT (hopefully zero), arrange for them to collect the car, and that's it. The car needs to be in good condition or you could get hit with charges for damage. 

AnotherJoe

or there may be value in the car,  you could see what you would get on a p/x And the selling dealer will settle the finance. 

CreditCardJunkie

Check your agreement details, I was wangled into some weird agreement that meant I couldn't voluntary terminate the agreement and had to let the 4 year contract run out before I could hand it back

superbigal

Or the car might actually still be a good trade in option against whatever new deal you get. Quite possible a dealer will offer more than your current settlement figure. 

macman

Firstly, you don't have a 'credit score'. It's a made-up figure that no lender sees, and is purely a marketing tool to sell you other products. What lenders see is your credit history.
Is this a PCP or HP deal? How many months left on it? If it's a PCP, then the 50% calculation includes the balloon payment, so you may not be at that point until near to the end of the contract.

alanastill12

i'm looking to voluntary terminate my pcp contract the end of this year - by my calculations and what the figures say the 'total amount payable' does not include the balloon payment - does that mean i can hand it back when i hit the 50% mark the end of this year. or does it include the balloon payment - if so unable to terminate the end of this year. theres conflicting advise saying you have to reach 50% of the 'total amount payable' on my sheet it doesn't include the balloon payment but some people say it has to include it 

bris

Yes it has to include it.

"Total amount payable" is self explanatory it includes the balloon payment.