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    • ceri123
    • By ceri123 10th Aug 18, 7:00 PM
    • 70Posts
    • 28Thanks
    ceri123
    PCP - can we get out after 2 months
    • #1
    • 10th Aug 18, 7:00 PM
    PCP - can we get out after 2 months 10th Aug 18 at 7:00 PM
    My hubby bought a car (18 months old 1600 miles on purchase, now about 4500) on PCP recently and has made 2 monthly payments. However I think he rushed into it and isnít keen on the car and wants to change vehicle.

    Iím assuming he will end up losing a fair amount whatever his options are.

    If itís relevant the PCP is with Black Horse. The dealer he bought the car from donít have the vehicle heís now after (itís a Peugeot dealer, heís after a Renault). He PXd an old car as a £3.5k deposit.

    Any advice or should he just stick with it?!

    Thanks
Page 1
    • Willing2Learn
    • By Willing2Learn 10th Aug 18, 7:25 PM
    • 822 Posts
    • 635 Thanks
    Willing2Learn
    • #2
    • 10th Aug 18, 7:25 PM
    • #2
    • 10th Aug 18, 7:25 PM
    Hi,

    Voluntary Termination of the PCP agreement under CCA legislation needs to be googled

    Have a look at the thread below. Post #4 has a link to a Legalbeagles 'how to' guide. It includes letter templates too.
    Voluntary Termination of PCP with Black Horse
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • antrobus
    • By antrobus 10th Aug 18, 7:54 PM
    • 15,844 Posts
    • 22,572 Thanks
    antrobus
    • #3
    • 10th Aug 18, 7:54 PM
    • #3
    • 10th Aug 18, 7:54 PM
    Hi,

    Voluntary Termination of the PCP agreement under CCA legislation needs to be googled

    Have a look at the thread below. Post #4 has a link to a Legalbeagles 'how to' guide. It includes letter templates too.
    Voluntary Termination of PCP with Black Horse
    Originally posted by Willing2Learn
    VT after only two months on a PCP?

    Are you sure?
    • Willing2Learn
    • By Willing2Learn 10th Aug 18, 8:02 PM
    • 822 Posts
    • 635 Thanks
    Willing2Learn
    • #4
    • 10th Aug 18, 8:02 PM
    • #4
    • 10th Aug 18, 8:02 PM
    VT after only two months on a PCP?

    Are you sure?
    Originally posted by antrobus
    No, I'm not sure. But it was the only option of which I was aware. After all, the OP did say:

    Iím assuming he will end up losing a fair amount whatever his options are.
    Originally posted by ceri123
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Cornucopia
    • By Cornucopia 10th Aug 18, 8:08 PM
    • 10,475 Posts
    • 10,630 Thanks
    Cornucopia
    • #5
    • 10th Aug 18, 8:08 PM
    • #5
    • 10th Aug 18, 8:08 PM
    It won't be eligible for VT for a fair while yet.

    Options are:-

    1. Establish the car's present value, and the settlement figure for the finance. The difference is the amount the OP's OH needs to find to sell the car free of finance.

    2. Go back to the Dealer and ask if they can help. After 2 months, and without a suitable option on the forecourt they will probably say no, but it's more likely with a used car than with new, especially if you buy something else from them.
    I'm a Board Guide on the Phones & TV, Techie Stuff, In My Home,
    The Money Savers Arms and Food Shopping boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views (especially those on the UK TV Licence) are mine and not the official line of moneysavingexpert.com.

    Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • antrobus
    • By antrobus 10th Aug 18, 8:23 PM
    • 15,844 Posts
    • 22,572 Thanks
    antrobus
    • #6
    • 10th Aug 18, 8:23 PM
    • #6
    • 10th Aug 18, 8:23 PM
    No, I'm not sure. But it was the only option of which I was aware. After all, the OP did say:
    Originally posted by Willing2Learn
    I'm a 100% sure that they can't. VT is only an option when you've repaid 50& of the finance. OP would be a long way from that goal after two months on a PCP.
    • molerat
    • By molerat 10th Aug 18, 8:25 PM
    • 19,105 Posts
    • 13,322 Thanks
    molerat
    • #7
    • 10th Aug 18, 8:25 PM
    • #7
    • 10th Aug 18, 8:25 PM
    The CCA allows you to VT at any time, it is your legal right. The rules for VT are that you need to pay to the 50% mark.
    www.helpforheroes.org.uk/donations.html
    • DrEskimo
    • By DrEskimo 10th Aug 18, 8:35 PM
    • 187 Posts
    • 122 Thanks
    DrEskimo
    • #8
    • 10th Aug 18, 8:35 PM
    • #8
    • 10th Aug 18, 8:35 PM
    Ignore the PCP bit for the minute.

    Imagine you bought the car with cash from a dealer, then wanted to sell it 2months later. You would expect to pay 2months/3,000miles of depreciation, plus the difference between a dealership price and what you can sell privately (as obviously dealers have a mark up on the cars they sell vs. what you can sell it for as a private seller).

    If you want to trade, then obviously the difference between dealership price and what it trades at is even bigger.

    That's the cost you are looking at to sell it after 2-months. Plus a little bit of interest you've incurred on the PCP finance.

    The fact you got it on finance rather than cash complicates it slightly in that you you borrowed the money, so are paying a finance company the money and not reimbursing yourself the purchase cost, but the principal remains the same. It also does complicate the private selling process as technically you are not allowed to sell it before the finance is settled.

    I could be wrong, and without the actual figures I can't work it out, but I would imagine any idea of paying the finance company up to the 50% total payable cost to VT would be vastly more expensive than selling it for a fair price at this stage.
    • Cornucopia
    • By Cornucopia 10th Aug 18, 8:59 PM
    • 10,475 Posts
    • 10,630 Thanks
    Cornucopia
    • #9
    • 10th Aug 18, 8:59 PM
    • #9
    • 10th Aug 18, 8:59 PM
    It also does complicate the private selling process as technically you are not allowed to sell it before the finance is settled.
    Originally posted by DrEskimo
    You are not allowed to sell it privately before the finance is settled - no technically about it.

    A reputable dealer or WBAC will provide the additional service of settling the finance for you, but they may not pay as much for the car as a private buyer.
    I'm a Board Guide on the Phones & TV, Techie Stuff, In My Home,
    The Money Savers Arms and Food Shopping boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views (especially those on the UK TV Licence) are mine and not the official line of moneysavingexpert.com.

    Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • DrEskimo
    • By DrEskimo 10th Aug 18, 9:07 PM
    • 187 Posts
    • 122 Thanks
    DrEskimo
    You are not allowed to sell it privately before the finance is settled - no technically about it.

    A reputable dealer or WBAC will provide the additional service of settling the finance for you, but they may not pay as much for the car as a private buyer.
    Originally posted by Cornucopia
    Yes of course. I was a bit vague, but you could reach and agreement with the buyer for a sale price, then settle the finance before receiving the money from the buyer and provide proof to the buyer that the finance is settled before parting with the car (probably advise them to do a HPI check after the finance is settled, although unsure on realistically how long it takes for HPI to update it's records??).

    Obviously far from ideal, hence suggesting it was tricky...!

    Sale or return or using a service like Tootle may be preferable for potentially getting greater than trade in, but still possibly less than private sale.
    • AnotherJoe
    • By AnotherJoe 10th Aug 18, 9:52 PM
    • 10,148 Posts
    • 11,417 Thanks
    AnotherJoe
    I agree with DrEskimo, the PCP is a red herring, you'll be able to trade it in for something else, and there's a cost to that which will be about the same whether it was bought for cash or PCP.

    The way you sell / buy will differ depending who you sell to and buy from, but bottom line is expect to lose maybe a grand, nothing to do with PCP. Does that make it worth hanging on or not?
    • whambar
    • By whambar 10th Aug 18, 10:16 PM
    • 20 Posts
    • 16 Thanks
    whambar
    You can end the PCP at anytime - however your hubby will need to brace as he assumes the position as it will hurt - only 2 months down the line no dent made in the capital payments only interest so you will need to sell the car back into the trade and make up some shortfall possibly - in the real world a dealer will smell desperate seller a mile off and offer you 30-40% less that car sold for (New regards from 1st sept , another owner on log book and influx of part exchanges when New reg comes out) car also in steep depreciation curve in years 0-3.

    WBAC will by it as will Evans Halshaw , the car people or tootle. Canít sell private as you donít own it on a PCP only leasing it in real terms. As stated the trade will buy it and settle finance but you are very likely to of given away your old car for free and still be handing money over

    Shame he didnít realise about a month ago as most main dealers approved used schemes offer a 30day exchange if not completely happy so could of swapped into a different model far cheaper

    Every month he can live with it will cut his losses - live with it for another months and should be able to walk away

    As stated canít VT it without paying around 31 more monthly payment s upfront and no car to show for it and no p/ex
    • AnotherJoe
    • By AnotherJoe 11th Aug 18, 9:28 AM
    • 10,148 Posts
    • 11,417 Thanks
    AnotherJoe
    Canít sell private as you donít own it on a PCP only leasing it in real terms.
    Originally posted by whambar
    A private sale is quite possible as long as the OP can borrow the money (or has the cash) for a few weeks to pay off the PCP. That simplifies selling private and might get a better price though if I was buying privately and it turned out to be a car bought only two months ago I'd assume it was a lemon and owner was looking to get shot so I'd steer well clear.
    • iolanthe07
    • By iolanthe07 11th Aug 18, 11:19 AM
    • 5,050 Posts
    • 4,736 Thanks
    iolanthe07
    Honestly, unless the car is a real lemon, you're better off sticking with it, imho.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Willing2Learn
    • By Willing2Learn 11th Aug 18, 11:42 AM
    • 822 Posts
    • 635 Thanks
    Willing2Learn
    I'm a 100% sure that they can't. VT is only an option when you've repaid 50& of the finance. OP would be a long way from that goal after two months on a PCP.
    Originally posted by antrobus
    I'm not disagreeing that 50% of the finance must be repaid to be eligible for Voluntary Termination (VT). What is to stop the OP from paying the extra in order to end the contract (to take the total to 50% paid)? Once the 50% is paid then the VT can kick in and the car can be returned. Simple and quick option. It is up to the OP to decide whether this option is preferable or not.

    Personally, I prefer the option provided by DrEskimo - but is it worth the extra work and hassle? - or is the VT just nice and simple and quick? I think it is worth the extra work, but it is up to the OP to make the choice. To buy themselves out of the contract with a VT.

    Look, I was just providing an option, one that I felt was relatively easy to implement if the OP is desperate to get rid of the car. In hindsight though, there are other, potentially better options available, and they have been proposed in this thread
    Last edited by Willing2Learn; 11-08-2018 at 12:00 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • foxy-stoat
    • By foxy-stoat 13th Aug 18, 9:13 AM
    • 2,440 Posts
    • 1,352 Thanks
    foxy-stoat
    What is the total cost of the agreement to fully own the car at the time he bought it?

    What does webuyanycar say its worth?

    The difference will be the amount you will have to pay in cash to part exchange it for the car he actually wants - or there abouts, 2 months payments wont really pay any of the capital off.

    To hand back the car and VT will be half of the difference.

    He may have to drive a £2000 again now until he can save up more money for the next deposit.
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