Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Joeread
    • By Joeread 13th Jan 19, 10:27 AM
    • 41Posts
    • 0Thanks
    Joeread
    return PCP car affect credit score?
    • #1
    • 13th Jan 19, 10:27 AM
    return PCP car affect credit score? 13th Jan 19 at 10:27 AM
    Hi All

    I have 10months left on my PCP car and I have realised that it is a waste of money. Will it affect my credit score if i return it? Or put a mark on my credit file?

    Thank You
Page 1
    • Gary_Dexter
    • By Gary_Dexter 13th Jan 19, 10:29 AM
    • 3,107 Posts
    • 1,794 Thanks
    Gary_Dexter
    • #2
    • 13th Jan 19, 10:29 AM
    • #2
    • 13th Jan 19, 10:29 AM
    Nothing will affect your credit score as it isn’t a real number.

    Please read the forums and in particular the “What your credit score really means” sticky.
    • TadleyBaggie
    • By TadleyBaggie 13th Jan 19, 2:24 PM
    • 3,047 Posts
    • 2,331 Thanks
    TadleyBaggie
    • #3
    • 13th Jan 19, 2:24 PM
    • #3
    • 13th Jan 19, 2:24 PM
    I have 10months left on my PCP car and I have realised that it is a waste of money. Will it affect my credit score if i return it? Or put a mark on my credit file?
    Originally posted by Joeread
    Return it how? You are probably not far enough in to VT it. If you just fail to make further payments (and so initiate a repossession) then I would fully expect a late payment followed by a default placed on your credit file. Court action may follow and result in a CCJ.
    • welly_59
    • By welly_59 13th Jan 19, 3:30 PM
    • 199 Posts
    • 82 Thanks
    welly_59
    • #4
    • 13th Jan 19, 3:30 PM
    • #4
    • 13th Jan 19, 3:30 PM
    Return it how? You are probably not far enough in to VT it. If you just fail to make further payments (and so initiate a repossession) then I would fully expect a late payment followed by a default placed on your credit file. Court action may follow and result in a CCJ.
    Originally posted by TadleyBaggie
    he has 10 months left, hes probably way over the halfway point of payments at this stage
    • molerat
    • By molerat 13th Jan 19, 3:43 PM
    • 19,948 Posts
    • 14,213 Thanks
    molerat
    • #5
    • 13th Jan 19, 3:43 PM
    • #5
    • 13th Jan 19, 3:43 PM
    he has 10 months left, hes probably way over the halfway point of payments at this stage
    Originally posted by welly_59
    I would say only a 50/50 chance, the people who work out car finance aren't stupid
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • welly_59
    • By welly_59 13th Jan 19, 3:49 PM
    • 199 Posts
    • 82 Thanks
    welly_59
    • #6
    • 13th Jan 19, 3:49 PM
    • #6
    • 13th Jan 19, 3:49 PM
    It's going to spend on the balloon payment at the end
    • DCFC79
    • By DCFC79 13th Jan 19, 4:39 PM
    • 33,356 Posts
    • 21,001 Thanks
    DCFC79
    • #7
    • 13th Jan 19, 4:39 PM
    • #7
    • 13th Jan 19, 4:39 PM
    he has 10 months left, hes probably way over the halfway point of payments at this stage
    Originally posted by welly_59

    Maybe Tadley made the same error I did and read it as the OP was 10 months into the contract and not 10 months left.
    • TadleyBaggie
    • By TadleyBaggie 14th Jan 19, 9:36 AM
    • 3,047 Posts
    • 2,331 Thanks
    TadleyBaggie
    • #8
    • 14th Jan 19, 9:36 AM
    • #8
    • 14th Jan 19, 9:36 AM
    Maybe Tadley made the same error I did and read it as the OP was 10 months into the contract and not 10 months left.
    Originally posted by DCFC79
    Nope. The usual rule of thumb with PCP is that the halfway point isn't reached until almost the end due to the balloon payment.
    • TadleyBaggie
    • By TadleyBaggie 14th Jan 19, 9:43 AM
    • 3,047 Posts
    • 2,331 Thanks
    TadleyBaggie
    • #9
    • 14th Jan 19, 9:43 AM
    • #9
    • 14th Jan 19, 9:43 AM
    As an example I looked at a PCP deal I had taken out a few years ago, according to the figures my half way point would be reached after month 33 (of a 36 month term).
    • Nasqueron
    • By Nasqueron 14th Jan 19, 9:44 AM
    • 6,502 Posts
    • 3,998 Thanks
    Nasqueron
    Remember that PCP has the balloon payment included in the total you must reach for 50% to VT


    Imagine a 0% a car deal for simplicity with £20000 car cost


    £500 deposit, GMV of say £7500 (which is your balloon).


    36 months payment of £333.33


    You don't get to 50% (£10,166.57) until month 29
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,077Posts Today

8,530Users online

Martin's Twitter