PCF Voluntary Termination

ontheroad1970

rayca 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 ? 

I have VT'd 2 cars as the trade in price against what was outstanding on the finance were miles apart so the dealer just said it would be easier to VT.. 
I have not had anything negative posted on my credit record ( I check clearscore and experian( free versions for both) ) and my credit score has remained unchanged . Most recently spoke with the finance company as the car had an issue the manufacturer were being a pain so i paid upto the VT and handed the car over to BCA car auctions ... In this case the finance company even confirmed that they were not actually looking at the damage of the car or excess mileage charges as it was not worth the hassle due to the amount of cars being handed back at the moment ( but i would still make sure you hand the car back clean and without engine warning lights)... The only way I can see that the credit record would be impacted is if you have not paid upto the VT point and just hand the car back and refuse to pay upto the VT( If you past this then this is not a problem)
Finance companies do not like you VTing a car as this means they are likely to loose money ( but that is not my problem).. but dealers are happy as it means they don't have to deal with another used car to get rid of and they can negotiate a new car  

You do realise that these "credit scores" have little or nothing to do with what lenders see, don't you.  The scores are a wheeze for companies who normally sell data just to companies to consumers too, but the scoring isn't necessarily the same.  There are also other factors.  Some lenders might look more closely at a borrower who had terminated several agreements.  It might make them to decide that the potential customer isn't a good for them, in the same way that those who pay off their credit cards every month can find themselves discouraged from continuing business with the card co.