Terminating PCP deal and motability

Sncjw

Hi all

So my husband has a car on pcp deal and we went to the dealership.to see when we could terminate the deal without extra payments. We went in November 2023 and they said it would be June/July this year when we could hand the car back with no questions asked. In November we would have had to pay 2k to hand the car back..

Now we are considering using my pip to get motability car and the car we liked had a 3 month build time. So we couls order the car in March/April to get it in time for the PCP hand over. However my husband is concerned that when. It comes to June/July they might want more money from us and we end up paying out more than we thought. 

Also the price of the car we like has come down on the updated price list that came out today. There is another price list our on 1st April so around the time where we order car so a risk of it goes back up as another car we spotted the price has gone up. 
.
Can the finance company ask us to pay more money on June July when they already said that is the time when we can hand over the car with no questions asked? 

Thank you 

Bigwheels1111

I my opinion you are over thinking it.
Is the PCP much more than Motability.
You need to include the deposit for your new car.
Plus what if 3 months turns into 4,5,6 months.
My dad’s motability car was 7 months late.
We opted to buy rather than go with motability.
After hearing horror stories where pip case is reassessed and car removed.

Our car is 7 years old with 23k miles on it now.
Paid £14,350 for it, pre reg with 5 miles on the clock.
Only real fault was an adblue tank replacement under warranty.
Had around £22k of motability money for 7 years.
Car + insurance + servicing + Extended warranty and a set of tyres £14,350 + £2,100 + £1,200 + £1,650 + £250 = £19,500.
We are £2,500 if front. Plus the car is worth 8k-10k still.
So 10k minimum ahead.

Ectophile

Your right to voluntary terminate the contract kicks in once you have paid 50% of the total amount payable.  On most PCP deals, that's not halfway through the contract, because of the big balloon payment at the end.  Instead, the 50% point can be quite close to the end of the contract.

So long as you keep making the payments, there's no reason for that date to change.  It's a right set out in law, and is not at the whim of the finance company.

Sometimes, it can be better to find a car dealer who wants the car and is willing to pay off the remaining finance.  But that's not guaranteed, as it depends on how the car has depreciated since new.

Sncjw

Bigwheels1111 said:

I my opinion you are over thinking it.
Is the PCP much more than Motability.
You need to include the deposit for your new car.
Plus what if 3 months turns into 4,5,6 months.
My dad’s motability car was 7 months late.
We opted to buy rather than go with motability.
After hearing horror stories where pip case is reassessed and car removed.

Our car is 7 years old with 23k miles on it now.
Paid £14,350 for it, pre reg with 5 miles on the clock.
Only real fault was an adblue tank replacement under warranty.
Had around £22k of motability money for 7 years.
Car + insurance + servicing + Extended warranty and a set of tyres £14,350 + £2,100 + £1,200 + £1,650 + £250 = £19,500.
We are £2,500 if front. Plus the car is worth 8k-10k still.
So 10k minimum ahead.

We have worked out we would save 1.5k a year going with motability. Also it's a brand new car which we wouldn't be able to afford if going by PCP then you have to add on insurance too which I think would be more than what we pay now. We will get 750 quid off the coat of advanced payment as they have extended if to this year. 

I am hopeful.to have my pip extended and in the mean time we will save money to put towards deposit of another car if motability does end. 

The delars has said the car we want is a 3 months lead.time. also the PCP we are paying now is less than motability but when you add insurance, service, mot and tyres it will come out more than the motability. Also my husband panics when it comes to mot and servicing in case there is extra work that's needs doing. This would be gone on motability 

ontheroad1970

What you are being asked is whether the term of the PCP ends before or after the estimated delivery date of the new car.  If it isn't available when the term ends  then you will need to find a car to use.  If you are approaching the point where the 50% of what is owed (including balloon payment) has been paid then you would be able to arrange for a Voluntary Termination which is a different thing.

Bigwheels1111

Sncjw said:

Bigwheels1111 said:

I my opinion you are over thinking it.
Is the PCP much more than Motability.
You need to include the deposit for your new car.
Plus what if 3 months turns into 4,5,6 months.
My dad’s motability car was 7 months late.
We opted to buy rather than go with motability.
After hearing horror stories where pip case is reassessed and car removed.

Our car is 7 years old with 23k miles on it now.
Paid £14,350 for it, pre reg with 5 miles on the clock.
Only real fault was an adblue tank replacement under warranty.
Had around £22k of motability money for 7 years.
Car + insurance + servicing + Extended warranty and a set of tyres £14,350 + £2,100 + £1,200 + £1,650 + £250 = £19,500.
We are £2,500 if front. Plus the car is worth 8k-10k still.
So 10k minimum ahead.

We have worked out we would save 1.5k a year going with motability. Also it's a brand new car which we wouldn't be able to afford if going by PCP then you have to add on insurance too which I think would be more than what we pay now. We will get 750 quid off the coat of advanced payment as they have extended if to this year. 

I am hopeful.to have my pip extended and in the mean time we will save money to put towards deposit of another car if motability does end. 

The delars has said the car we want is a 3 months lead.time. also the PCP we are paying now is less than motability but when you add insurance, service, mot and tyres it will come out more than the motability. Also my husband panics when it comes to mot and servicing in case there is extra work that's needs doing. This would be gone on motability 

Great if you can tie up all the timings etc, pus save 1.5k a year.
My dad can’t wait for his current motability car to go back next year.
It’s a GLA Mercedes I think, from new every time it rains hard the rear footwells fill with water.
Known issues.
His last car a C Class estate went back 8 or 9 times on a low loader and driven back 5-10 times more to be fixed.
3 new auto gearboxes, 2 instrument clusters, radio and a few other bits.
He is going to buy a new Toyota Corolla Estate in late 2025, he will be 81 and thinks it will be his last.
Excell 2.0l is around 31k, 10 year warranty if serviced at Toyota once a year.
It will probably be my next car choice as well. But not until 2031 ish.
I want 15 years out of my car first.

Sncjw

ontheroad1970 said:

What you are being asked is whether the term of the PCP ends before or after the estimated delivery date of the new car.  If it isn't available when the term ends  then you will need to find a car to use.  If you are approaching the point where the 50% of what is owed (including balloon payment) has been paid then you would be able to arrange for a Voluntary Termination which is a different thing.

Hi the PCP ends in 2026 but we have been told we can hand back in June/July this year with no questions asked. If we wanted to terminate earlier than that we would have to pay about 1.5k.  I have said to husband if the build time is longer than so be it but it would be ok if we can hand it back in June /July. 

My husband is worried when it comes to June/July that they will ask for more money but I said that they can't change that date if we are keeping up with payments. We will be taking it to a dealership anyways when handing back..my husband is worried that we will have two cars in case we can't get rid of the one we have but I said your still going to have the issue of waiting for the new car anyways even if we wait to order the new one in June /jul when we know we can hand it back. 

So my question was can they change when the voluntary termination date is 

Sncjw

I just had further information. Our settlement figure at the moment is 13,720.16 and I have emailed the dealership to see if we are still on track for June July and also the build time. 

DrEskimo

Sncjw said:

I just had further information. Our settlement figure at the moment is 13,720.16 and I have emailed the dealership to see if we are still on track for June July and also the build time. 

How much is the car currently worth?

You don't need to trade/sell the car to the dealership you bought it from. You can sell it anywhere that will give you the best price.

Try a few online brokers (WBAC, Carwow, etc.) and also ring a few local dealers for a price on your car and see how it compares to the settlement figure.