PCF Voluntary Termination

cowait

My son has a car on a PCF and the term is up, he can either hand the car back and walk away or trade it back in and get another. Ford's naturally have given him a crap trade in price so he is inclined to walk away. However his mrs was at the dealers today and some smart !!!!!! salesman was telling her that if they handed it back it would look to a credit agency like they can not afford the payments and it would adversely affect their credit rating.

I have an idea he is just bulls***ing and trying to apply pressure to clinch a new deal. I would tell him to shove it, and also make a formal complaint about him being a lying t**t.

On the other hand..................is he right ? 

flashg67

AFAIK, that is absolute rubbish - just a last ditch attempt to make a sale I reckon. I settled my last PCP early with no effect at all - just shows as a settled account with a nil balance on my file. Has he thought about trying we buy any car etc? i got £800 more than the dealer offered, even after the inevitable deductions for a near invisible scratch etc, and they settled my finacne and sent the balance to my bank within a few days.

neilmcl

The guy's talking completely BS or your son didn't fully understand what was said. Handing the car back at the end of the agreement is perfectly normal and has absolutely no affect on your credit file. Also, I don't know why you mention voluntary termination in the thread title as that is something entirely different.

FYI, it's a PCP not PCF.

AdrianC

My money's on Chinese Whispers, and a VT was being referred to.

No point in complaining. Just... buy from a different dealer, instead.

KimJongUn88

cowait said:

My son has a car on a PCF and the term is up, he can either hand the car back and walk away or trade it back in and get another. Ford's naturally have given him a crap trade in price so he is inclined to walk away. However his mrs was at the dealers today and some smart !!!!!! salesman was telling her that if they handed it back it would look to a credit agency like they can not afford the payments and it would adversely affect their credit rating.

I have an idea he is just bulls***ing and trying to apply pressure to clinch a new deal. I would tell him to shove it, and also make a formal complaint about him being a lying t**t.

On the other hand..................is he right ? 

Ford offered a crap trade in? The whole point of a PCP is the value of the car at the end of the term is agreed at the start of the contract in the GFV figure. Why are you moaning about it being crap now?  You knew what the value would be right at the start.

Grumpy_chap

Very unclear from the OP whether the son is at the natural end of the PCP term, or needs to VT ahead of the natural end being reached.  The latter may show less well in credit records.

neilmcl

KimJongUn88 said:

cowait said:

My son has a car on a PCF and the term is up, he can either hand the car back and walk away or trade it back in and get another. Ford's naturally have given him a crap trade in price so he is inclined to walk away. However his mrs was at the dealers today and some smart !!!!!! salesman was telling her that if they handed it back it would look to a credit agency like they can not afford the payments and it would adversely affect their credit rating.

I have an idea he is just bulls***ing and trying to apply pressure to clinch a new deal. I would tell him to shove it, and also make a formal complaint about him being a lying t**t.

On the other hand..................is he right ? 

Ford offered a crap trade in? The whole point of a PCP is the value of the car at the end of the term is agreed at the start of the contract in the GFV figure. Why are you moaning about it being crap now?  You knew what the value would be right at the start.

Not quite. The dealer can offer what they like, which could be less than the GFV and therefore creating negative equity. This would then be rolled into the next PCP agreement. You'd only want to "trade-in" a car on PCP if it has some equity at the end. Personally, I think @AdrianC is correct and this is more a case of chinese whispers.

[Deleted User]

KimJongUn88 said:

cowait said:

My son has a car on a PCF and the term is up, he can either hand the car back and walk away or trade it back in and get another. Ford's naturally have given him a crap trade in price so he is inclined to walk away. However his mrs was at the dealers today and some smart !!!!!! salesman was telling her that if they handed it back it would look to a credit agency like they can not afford the payments and it would adversely affect their credit rating.

I have an idea he is just bulls***ing and trying to apply pressure to clinch a new deal. I would tell him to shove it, and also make a formal complaint about him being a lying t**t.

On the other hand..................is he right ? 

Ford offered a crap trade in? The whole point of a PCP is the value of the car at the end of the term is agreed at the start of the contract in the GFV figure. Why are you moaning about it being crap now?  You knew what the value would be right at the start.

The GMV is agreed based on the car being in good condition, kept to mileage agreement etc. The dealer has every incentive to lower the value at the end by pointing out damage that isn't wear and tear e.g. scuffed alloys, paintwork scrapes etc and of course any excess mileage. The only guaranteed thing really is that is the sum you need to pay to clear the finance.

I don't understand why OP thinks there are only 2 options, they haven't mentioned paying the balloon and simply taking the car that they have (presumably) looked after for 3 years, know the condition of etc

AdrianC

Deleted_User said:

The GMV is agreed based on the car being in good condition, kept to mileage agreement etc. The dealer has every incentive to lower the value at the end by pointing out damage that isn't wear and tear e.g. scuffed alloys, paintwork scrapes etc and of course any excess mileage.

The industry standard fair wear and tear standards and expectations are VERY well documented.
https://issuu.com/bfwsn67/docs/bvrla_fair_wear_and_tear_standard_-_cb6bf45bb50403?e=2001091/30897824

[Deleted User]

AdrianC said:

Deleted_User said:

The GMV is agreed based on the car being in good condition, kept to mileage agreement etc. The dealer has every incentive to lower the value at the end by pointing out damage that isn't wear and tear e.g. scuffed alloys, paintwork scrapes etc and of course any excess mileage.

The industry standard fair wear and tear standards and expectations are VERY well documented.
https://issuu.com/bfwsn67/docs/bvrla_fair_wear_and_tear_standard_-_cb6bf45bb50403?e=2001091/30897824

Nothing in your link corrects what I said in my post, no matter what you type in capitals

Per your own link, scuffs over 50mm are not wear and tear, nor are dents, damage to spokes, wheel fascia etc; similarly scratches over 25mm are not, further those under can be excluded from wear and tear if primer/bare metal is showing or if they can't be polished out - with a maximum of 4 per panel. So despite it being VERY well documented, there is plenty of leeway there for the dealer to lower the GMV by picking out long scuffs, any scratches they claim can't be polished out etc

I know your reputation of wanting to have the last word on stuff, whether right or wrong so I'll leave you to it, I won't read any further responses on this post

AdrianC

No, there is zero scope for opinion or juggling. The dealer don't see the car on return, anyway - it's collected by a third party, usually an auctioneer.

If damage is within the standard, it should not be charged for.
If it exceeds it, it should. That black and white.