PCP/Finance Repayment Query

Boopy07

Hi All,
A complete newbie here so be gentle and happy new year!

I took out a PCP car finance deal with VW on a brand new car in 2015 and all seemed okay; until I lost my job on maternity leave and couldn't pay it back. After some discussions, they said they would take the car back but I was still liable for paying back the "debt owned"; I was too much of a mess to fight it but I am STILL paying the damn thing off every month and they have trashed my credit rating as I am not paying the full amount each month but rather an agreed amount (never missed a payment).

So my longwinded question is - considering they took the car back, should I have been on the hook for the debt on a vehicle that they have more than likely resold and that I have not legally owned for a decade??

I appreciate any replies/guidance.

DullGreyGuy

Presumably you hadn't repaid half the original debt when you returned the vehicle?

If not the they should have calculated an early termination cost for the debt, recovered and sold the vehicle, what they got for the car less expenses is then taken off the debt and you have to repay the remainder. The earlier you surrendered the vehicle the bigger the short fall will have been and they're presumably still charging interest so probably most of what you pay is just paying off the interest on the debt rather than the capital.