PSA Finance - Voluntary Termination - Car

Silverum

Hi - we have paid half of the full amount of our car agreement, including the balloon payment.  I believe this means we can voluntarily terminate the agreement and hand the car back.  Our circumstances have changed and we no longer need a second car.
Should we call or write to them and does anyone have any advice on how to go about this as we have not done it before.
Thanks,

[Deleted User]

Calling would be quicker.

DrEskimo

First thing to do is get a valuation of the car from a variety of different dealers, garages and online sites, like WeBuyAnyCar and Motorway.co.uk.

See what the value is relative to the settlement figure of the finance. If it is the same or greater than the settlement, it would be easier/in your interest to simply sell the vehicle to the highest bidder, where they will settle the finance for you on purchasing the car, and provide you with any surplus payment.

Silverum

Thank you both. 

zx81 - I'd rather phone but I've seen things on line about having to send recorded delivery letters and wasn't sure!

DrEskimo - thank you, I hadn't thought of that but just had a quick look at we buy any car are offering about £800 less than the settlement figure and motorway.co.uk are offering about £550 less sadly.

DrEskimo

Is there any damage beyond the fair wear and tear guidelines, or any excess mileage beyond the pro-rata amount? If so, you will need to factor these in to the VT cost.

I would ring a few local garages and see if they are interested. Don't mention the finance, see what they offer, and if it's £500 less then say, I am about to VT, if you can offer the settlement figure its yours.

It took a bit of haggling on my last car, but its possible.

Silverum

Great thank you I will do that as there are a couple of local garages.  Three is no damage and the mileage I could do was 6k year year but it's only done 11k and is 3 years and 2 months old.

Thanks for your help - appreciate it!

DrEskimo

Pleasure!

Ultimately, if you can't find someone to buy it from you to settle the finance in full, then I believe you should request your right to voluntarily terminate the agreement in writing. 

Be sure to state that it is Voluntary Termination you are wanting to exercise, not Voluntary Surrender. Both quite different and the latter can leave you potentially paying a lot more.

Some good advice here.

Silverum

@DrEskimo sorry I’m back with a question!
we were planning to take the car today to we buy any car as their offer has increased a lot and it’s now ok.  However I noticed our settlement letter from PSA says that the figure is valid for a month and is based on is paying our next direct debit payment.  That’s fine for us, but will we buy any car accept that do you think?
I can’t get anyone on the phone to ask! 

DrEskimo

Silverum said:

@DrEskimo sorry I’m back with a question!
we were planning to take the car today to we buy any car as their offer has increased a lot and it’s now ok.  However I noticed our settlement letter from PSA says that the figure is valid for a month and is based on is paying our next direct debit payment.  That’s fine for us, but will we buy any car accept that do you think?
I can’t get anyone on the phone to ask! 

We buy any car will request a new settlement figure when you go to sell the car to them. 

Silverum

Thanks! Problem is that this seems to be the format of the settlement figure letters PSA produce! I got a revised one from them yesterday and again it says it’s valid for a month and assumes payment of our next direct debit! I’ll maybe have to speak to them on Monday and see if they can just to a letter with a straightforward settlement figure. 

Grumpy_chap

The format of the settlement figure is not important.  
If the settlement figure is written as £10k plus the next monthly payment £300, then you need to get £10,300.
Ask WBAC (or whoever) for their offer.  If it is higher than £10,300 take the money (less the £10,300 for the finance) and keep the balance.
If the offer is lower than £10,300 then use that figure to haggle as @DrEskimo said.  WBAC will be able to understand that the settlement figure is the sum of two amounts if you get to a point of needing to provide evidence - but they'll obtain their own figure in any case.