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  • FIRST POST
    • ed67812
    • By ed67812 6th Jan 18, 9:53 PM
    • 148Posts
    • 56Thanks
    ed67812
    PCP Voluntary Termination
    • #1
    • 6th Jan 18, 9:53 PM
    PCP Voluntary Termination 6th Jan 18 at 9:53 PM
    Hi all

    This is a bit long winded but want to check that I am correct.

    I took out a 3 year PCP in October 2015 which should run until October this year.

    Car was the right choice at the time, but need a bigger one before the summer holidays. I'm throwing figures around and obviously in a bit (not terrible) negative equity which is expected.

    However, I am thinking a voluntary termination is the way forward. But the online guidance says that you have to pay back 50% of either "total amount payable", "total amount financed" or something else depending on where you read.

    The "total amount payable" on my agreement is £14699.45 which is the 35 monthly payments + the balloon + the deposit (total £900 - £600 dealer contribution, £300 me).

    The other page of the agreement has the same figure £14699.45 made up of amount of credit (£12700) + interest/fees (1099.45) + deposit (£900 again).....which makes sense as it is a different way of presenting the same things.

    Am I correct in thinking that early termination relies on 50% of the amount financed + interest and charges. So in my case not £14699.45, but £13799.45 (£14699.45-£900 deposit).

    Hence I need to have paid back 50% of this to voluntary terminate - £6899.73

    I have so far paid £6120.56 in monthly payments and the initial finance fee.

    I pay £213.27 a month. So after May's payment, I'll have just gone over 50%.

    So I could wait until April and give the car back penalty free instead of being in negative equity?

    Any thoughts? Anyone see anything I've missed or calculated wrong?
    Last edited by ed67812; 06-01-2018 at 10:30 PM.
Page 1
    • nelly12
    • By nelly12 6th Jan 18, 10:24 PM
    • 206 Posts
    • 74 Thanks
    nelly12
    • #2
    • 6th Jan 18, 10:24 PM
    • #2
    • 6th Jan 18, 10:24 PM
    Hi all

    This is a bit long winded but want to check that I am correct.

    I took out a 3 year PCP in October 2015 which should run until October this year.

    Car was the right choice at the time, but need a bigger one before the summer holidays. I'm throwing figures around and obviously in a bit (not terrible) negative equity which is expected.

    However, I am thinking a voluntary termination is the way forward. But the online guidance says that you have to pay back 50% of either "total amount payable", "total amount financed" or something else depending on where you read.

    The "total amount payable" on my agreement is £14699.45 which is the 35 monthly payments + the balloon + the deposit (total £900 - £600 dealer contribution, £300 me).

    The other page of the agreement has the same figure £14699.45 made up of amount of credit (£12700) + interest/fees (1099.45) + deposit (£900 again).....which makes sense as it is a different way of presenting the same things.

    Am I correct in thinking that early termination relies on 50% of the amount financed + interest and charges. So in my case not £14699.45, but £13799.45 (£14699.45-£900 deposit).

    Hence I need to have paid back 50% of this to voluntary terminate - £6899.73

    I have so far paid £6120.56 in monthly payments and the initial finance fee.

    I pay £213.27 a month. So after April's payment, I'll have just gone over 50%.

    So I could wait until April and give the car back penalty free instead of being in negative equity?

    Any thoughts? Anyone see anything I've missed or calculated wrong?
    Originally posted by ed67812

    Itís 50% of the £14699.45. Ie 50% of the total amount payable, your deposit and the dealer contribution are included in this.
    • ed67812
    • By ed67812 6th Jan 18, 10:35 PM
    • 148 Posts
    • 56 Thanks
    ed67812
    • #3
    • 6th Jan 18, 10:35 PM
    • #3
    • 6th Jan 18, 10:35 PM
    How does the dealer deposit contribution work then. Does that count as my payment?

    If its 50% of the £14699.45 = £7349.73
    then I've paid £900 + the £6120.56 in monthly payments / initial fee so that is £7120.56.

    So I'm only one payment away from being in a VT position?
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