Voluntary temination of PCP

ellay864

Hi, I have read some previous posts but am still a bit confused about the impact of VT.  I took out a PCP when I bought my new Ford 3 years ago.  That contract is due to end in March next year, but I have got a chance on a really good deal deal for another car now, not with Ford, and am progressing with that.  I am comfortably past the 50% mark on this contract, well within the mileage allowance and the car is generally in good condition, short of needing a good clean.   I called Ford credit people up today and was told that even though I am terminating within my rights, simply by going through VT it will affect my credit rating for 6 years.  I have some health issues going on, I really have not got the time or energy to try to part ex or sell the car, I just want out of that contract so I can take on the new one. Am I really setting myself up for a fall by going through with VT?

neilmcl

Whilst a VT will be recorded, it wont be a "black mark" as such and will have no adverse effect on your ability to get future credit. It may, if you are an habitual VTer, give finance providers the information to disallow a future PCP but if you've only done it once or twice then nothing will happen.

molerat

Have you checked the trade in value against the settlement amount ?

AdrianC

ellay864 said:

I took out a PCP when I bought my new Ford 3 years ago.  That contract is due to end in March next year
...
I am comfortably past the 50% mark on this contract

Really? Including the balloon?

Nearlyold

ellay864 said:

   I called Ford credit people up today and was told that even though I am terminating within my rights, simply by going through VT it will affect my credit rating for 6 years.  I have some health issues going on, I really have not got the time or energy to try to part ex or sell the car, I just want out of that contract so I can take on the new one. Am I really setting myself up for a fall by going through with VT?

As AdrianC says, are you sure you have paid 50% of the "Total Amount Payable". If you are not at the VT point it maybe that Ford Credit thought you were enquiring about a "Voluntary Surrender" - which would be a concern to future lenders.
Did you get a Part Ex offer from whoever you are getting your new car from - would have thought that would be the route that required the least time and energy on your part if the offer was reasonable - no worrying about disputes over charges for scratches dings etc. 

32Battalion

There will be much better deals after those that are already redundant actually find out they are redundant in October.

neilmcl

32Battalion said:

There will be much better deals after those that are already redundant actually find out they are redundant in October.

?????

AdrianC

neilmcl said:

32Battalion said:

There will be much better deals after those that are already redundant actually find out they are redundant in October.

?????

He's suggesting that furlough is just a way of hiding redundancy.

ellay864

Thanks all, Yes I am past the total amount they have quoted,  that's not an issue. Part ex with the seller for new car isn't worth it financially based on figures they've given me and settlement figure.  I was really just more bothered about it being seen as a credit problem, but weighing up comment above against my credit needs I'll take the chance

32Battalion

AdrianC said:

neilmcl said:

32Battalion said:

There will be much better deals after those that are already redundant actually find out they are redundant in October.

?????

He's suggesting that furlough is just a way of hiding redundancy.

And then we we will be entering the territory we last saw in about 2010 with new car sales.

Ganga

32Battalion said:

AdrianC said:

neilmcl said:

32Battalion said:

There will be much better deals after those that are already redundant actually find out they are redundant in October.

?????

He's suggesting that furlough is just a way of hiding redundancy.

And then we we will be entering the territory we last saw in about 2010 with new car sales.

Which was ?