Voluntary termination of PCP loan.

Tango1947

I have a 36 month PCP loan which has four months to run, so four payments then the final balloon payment. It has always been my intention to hand the car back at the end, but having seen a good deal on a new car, I hoped that I could pay the remaining four payments now then hand the car back.

I realise that I must pay 50% of the overall cost which is actually quite a small amount which I am happy to pay. However when I checked the details on the finance company, it popped up a warning message advising me that a voluntary termination could have an affect on my credit rating, which is currently excellent.

This concerns me as I wonder if it could affect my loan application for the new car.

Is a VT likely to affect my credit rating, and could it affect my loan application?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/6681272/voluntary-termination-of-pcp-loan

If you are basing your 'excellent' credit rating on what a Credit Reference Agency are telling you then that can be ignored. As can the warning that VT can affect it.

born_again

Why not trade current car in against the new one?

Tango1947

https://forums.moneysavingexpert.com/discussion/comment/82117978#Comment_82117978

The guaranteed value is £17k but the px value is £15k so would lose £2k.

born_again

Not sure if a lender would see a VT as someone that is not in the best financial position.

Might depend on who the lender is, but could might effect interest rate