PCP Termination/We Buy Any Car

meerkatpie

DrEskimo said:

It's certainly an option for reducing your debt, but as others say shop around and see if you can get a better price than WBAC. Most garages/dealers will give you an offer to buy the car from you. Motorway.co.uk is another place to try.

Just be mindful that you may not be able to settle the shortfall with a purchase credit card. You would need to look at balance transfer.

You really need to sit down and think how much longer it will take to clear your debt with the current car, compared to changing it for a cheaper one. 

Its been on my mind a while, the big catch for me is the monthly payment, if I could even cut that in half it would be better for me, but nearly £300 is a lot and it had taken a toll more than I thought when I bought the car.

It was a silly thing to do in hindsight, but hindsight is a great thing!

meerkatpie

Karonher said:

As soon as I saw We Buy Any Car my thought was "don't do it."

That seems to be the general consensus 🤣

I haven't really heard much of a good word about them yet!

DrEskimo

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

meerkatpie

DrEskimo said:

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

I wasn't sure about this to be fair, I have read that it has no impact on my credit score? 

The amount I need to pay pay bring it to half the value from when I took out the finance is £3,080.54.

The car is in really great condition, no scratches scrapes or anything really and it hasn't even done a year's worth of my allowed mileage yet! 

I wasn't sure whether to pay this difference with a 0% money transfer offer I have on Barclaycard at the moment and also use this money transfer for the cheaper car.

I've had a look at some cars on autotrader and I think I could get something that would get me by. 

DrEskimo

meerkatpie said:

DrEskimo said:

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

I wasn't sure about this to be fair, I have read that it has no impact on my credit score? 

The amount I need to pay pay bring it to half the value from when I took out the finance is £3,080.54.

The car is in really great condition, no scratches scrapes or anything really and it hasn't even done a year's worth of my allowed mileage yet! 

I wasn't sure whether to pay this difference with a 0% money transfer offer I have on Barclaycard at the moment and also use this money transfer for the cheaper car.

I've had a look at some cars on autotrader and I think I could get something that would get me by. 

It makes little sense to trade it in with a £3k shortfall if you are in a position to VT. Simple write to the finance company to express your desire to Voluntary Terminate. Be very clear that it is Voluntary Termination, and not Voluntarily Surrendering. They are two very different things.

It will have no impact on your credit score (not that it should matter, since your credit score is only a marketing score that is loosely related to your credit history).

Some good info here.

You could then use the money transfer offer to buy a cheaper car.

Double check the amount you need to pay to exercise your right to VT though. You say you needed to only pay £3,080.54 from when you took out the finance, yet you still currently owe ~£12,000? That doesn't seem right to me....

meerkatpie

DrEskimo said:

meerkatpie said:

DrEskimo said:

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

I wasn't sure about this to be fair, I have read that it has no impact on my credit score? 

The amount I need to pay pay bring it to half the value from when I took out the finance is £3,080.54.

The car is in really great condition, no scratches scrapes or anything really and it hasn't even done a year's worth of my allowed mileage yet! 

I wasn't sure whether to pay this difference with a 0% money transfer offer I have on Barclaycard at the moment and also use this money transfer for the cheaper car.

I've had a look at some cars on autotrader and I think I could get something that would get me by. 

It makes little sense to trade it in with a £3k shortfall if you are in a position to VT. Simple write to the finance company to express your desire to Voluntary Terminate. Be very clear that it is Voluntary Termination, and not Voluntarily Surrendering. They are two very different things.

It will have no impact on your credit score (not that it should matter, since your credit score is only a marketing score that is loosely related to your credit history).

Some good info here.

You could then use the money transfer offer to buy a cheaper car.

Double check the amount you need to pay to exercise your right to VT though. You say you needed to only pay £3,080.54 from when you took out the finance, yet you still currently owe ~£12,000? That doesn't seem right to me....

I think that might be best to be fair.

Anything to help really, I just need to do it in the right way that's best for me.

I'll be honest, I am not sure if I have worked it out right but this is where I get my numbers from:

I took the car out in March 2020 with a total amount payable of £19,425.72 at 0%.

The total term is 42 months with a monthly payment of £292.15.

I have 27 payments left with £12,793.40 outstanding. There is a balloon payment included in this figure of £5,197.50.

I don't know whether I did this right, but I halved the full payment amount of £19,425.72 to get £9,712.86. I took this away from the £12,793.40 to get my ~£3,000 figure.

There aren't any final costs so I think this works right, as then I'll have cleared half the balance?

meerkatpie

DrEskimo said:

meerkatpie said:

DrEskimo said:

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

I wasn't sure about this to be fair, I have read that it has no impact on my credit score? 

The amount I need to pay pay bring it to half the value from when I took out the finance is £3,080.54.

The car is in really great condition, no scratches scrapes or anything really and it hasn't even done a year's worth of my allowed mileage yet! 

I wasn't sure whether to pay this difference with a 0% money transfer offer I have on Barclaycard at the moment and also use this money transfer for the cheaper car.

I've had a look at some cars on autotrader and I think I could get something that would get me by. 

It makes little sense to trade it in with a £3k shortfall if you are in a position to VT. Simple write to the finance company to express your desire to Voluntary Terminate. Be very clear that it is Voluntary Termination, and not Voluntarily Surrendering. They are two very different things.

It will have no impact on your credit score (not that it should matter, since your credit score is only a marketing score that is loosely related to your credit history).

Some good info here.

You could then use the money transfer offer to buy a cheaper car.

Double check the amount you need to pay to exercise your right to VT though. You say you needed to only pay £3,080.54 from when you took out the finance, yet you still currently owe ~£12,000? That doesn't seem right to me....

Also, that guide is very helpful, thank you!

molerat

No deposit paid ?

meerkatpie

molerat said:

No deposit paid ?

Only £1,000, but I didn't think that would be included in the £19,000 figure. 🤔

DrEskimo

meerkatpie said:

DrEskimo said:

meerkatpie said:

DrEskimo said:

Sorry just seen the part about VT. That would make much more sense than trading it in for a £3k shortfall.

Are you sure you are at the VT point, and would you be liable for any other costs, like excess mileage or damage?

I wasn't sure about this to be fair, I have read that it has no impact on my credit score? 

The amount I need to pay pay bring it to half the value from when I took out the finance is £3,080.54.

The car is in really great condition, no scratches scrapes or anything really and it hasn't even done a year's worth of my allowed mileage yet! 

I wasn't sure whether to pay this difference with a 0% money transfer offer I have on Barclaycard at the moment and also use this money transfer for the cheaper car.

I've had a look at some cars on autotrader and I think I could get something that would get me by. 

It makes little sense to trade it in with a £3k shortfall if you are in a position to VT. Simple write to the finance company to express your desire to Voluntary Terminate. Be very clear that it is Voluntary Termination, and not Voluntarily Surrendering. They are two very different things.

It will have no impact on your credit score (not that it should matter, since your credit score is only a marketing score that is loosely related to your credit history).

Some good info here.

You could then use the money transfer offer to buy a cheaper car.

Double check the amount you need to pay to exercise your right to VT though. You say you needed to only pay £3,080.54 from when you took out the finance, yet you still currently owe ~£12,000? That doesn't seem right to me....

I think that might be best to be fair.

Anything to help really, I just need to do it in the right way that's best for me.

I'll be honest, I am not sure if I have worked it out right but this is where I get my numbers from:

I took the car out in March 2020 with a total amount payable of £19,425.72 at 0%.

The total term is 42 months with a monthly payment of £292.15.

I have 27 payments left with £12,793.40 outstanding. There is a balloon payment included in this figure of £5,197.50.

I don't know whether I did this right, but I halved the full payment amount of £19,425.72 to get £9,712.86. I took this away from the £12,793.40 to get my ~£3,000 figure.

There aren't any final costs so I think this works right, as then I'll have cleared half the balance?

Apologies I misread. 

I think you're right, you would still need to pay ~£3,000 to VT. So it really doesn't make any difference whether you trade in or VT. You still end up with the same shortfall.