PCP

[gilberto]

can I terminate a PCP with 7 months remaining and start afresh?
Will there be any penalties?
Thank you

 

[CarlPea]

As in a part exchange or hand back?

 

[Deleted member 6183]

Maybe.

 

[PenelopePitstop]

You may terminate any time, however it may cost you extra or it may be free. I suggest reading about Voluntary Termination.

 

[Bobby Dazzler]

can I terminate a PCP with 7 months remaining and start afresh?
Will there be any penalties?
Thank you

It will depend upon the specific terms and conditions of your PCP. I think you will be able to, but it may be an expensive thing to do as even without penalties, most cars will have take a big hit on depreciation, and your payments may not cover it leaving a shortfall. You may be lucky though.

Who is the finance company providing the PCP?

 

[Gene]

By start afresh do you mean buying another car on PCP?, i.e part exchange

can I terminate a PCP with 7 months remaining and start afresh?
Will there be any penalties?
Thank you

 

[gIzzE]

Phone up, ask for a settlement figure, then sell it if you think you are happy with what you can get vs what you owe.

 

[flowrider]

If you have paid more than half the amount borrowed then you can voluntarily terminate with nothing to pay. If you haven't paid at least half you will have to make up the shortfall.

 

[gilberto]

As in a part exchange or hand back?

Probably part ex

 

[gilberto]

You may terminate any time, however it may cost you extra or it may be free. I suggest reading about Voluntary Termination.

Thanks

 

[gilberto]

It will depend upon the specific terms and conditions of your PCP. I think you will be able to, but it may be an expensive thing to do as even without penalties, most cars will have take a big hit on depreciation, and your payments may not cover it leaving a shortfall. You may be lucky though.

Who is the finance company providing the PCP?

It will depend upon the specific terms and conditions of your PCP. I think you will be able to, but it may be an expensive thing to do as even without penalties, most cars will have take a big hit on depreciation, and your payments may not cover it leaving a shortfall. You may be lucky though.

Who is the finance company providing the PCP?

MB finance

 

[gilberto]

Thanks to all for quick esponses

 

[CarlPea]

Probably part ex

As long as you request a final valuation on your vehicle you can look for a new car with the prospect of part exchange. Depending on the valuation either the positive equity in the car will be put towards the value of the new car or, I'm assuming, the negative equity will be added to the cost of the new vehicle. It may become an expensive exchange!

Example:

PCP final valuation = £10,000

Dealer offers = £9000

You need to add £1000 negative equity to the new car's price.

 

[flowrider]

As long as you request a final valuation on your vehicle you can look for a new car with the prospect of part exchange. Depending on the valuation either the positive equity in the car will be put towards the value of the new car or, I'm assuming, the negative equity will be added to the cost of the new vehicle. It may become an expensive exchange!

Example:

PCP final valuation = £10,000

Dealer offers = £9000

You need to add £1000 negative equity to the new car's price.

Then the OP is losing even more money on the car, he has already lost his intial deposit and lost all his monthly payments and now potentially has negative equity on the car resulting in loading up the next finance deal or having to give the finance company even more money just to give the car back.

 

[Deleted member 6183]

Then the OP is losing even more money on the car, he has already lost his intial deposit and lost all his monthly payments and now potentially has negative equity on the car resulting in loading up the next finance deal or having to give the finance company even more money just to give the car back.

This is why car finance needs better regulation.

 

[Bobby Dazzler]

Then the OP is losing even more money on the car, he has already lost his intial deposit and lost all his monthly payments and now potentially has negative equity on the car resulting in loading up the next finance deal or having to give the finance company even more money just to give the car back.

The OP could choose not to terminate and continue with the agreement. To buy a new car and expect to get out of it without losing some money is somewhat naive, that said I don’t think the OP expects to - the question was about penalties, not equity.

 

[Doodle]

This is why car finance needs better regulation.

You're not wrong, the agreement on my Renault beggars belief. Due to the way the figures work out, the VT point is never reached during the agreement - £10k "borrowed" sum after contributions, GMFV is just over £6k. The actual value of the car is probably £5k at best despite some optimistic asking prices from various used retailers.

I've stopped using the car because it's possibly the biggest pile of merde de chien I've had to drive for any extended period. However, rather than doing the sensible thing, taking the rest of my payments in one sum and having the car back early (and therefore theoretically worth more), they insist on VT to take it back now which effectively doubles the outstanding figure. This intransigence makes even less sense given that RCI already know they've royally fouled up the figures, and have been offering owners trade price come end of agreement to try and stem the deluge of handbacks.

So as a result, it's going to sit rotting on my driveway for 7 months with a discharged battery and flatspotted tyres until they come to drag it away.

 

[gilberto]

As long as you request a final valuation on your vehicle you can look for a new car with the prospect of part exchange. Depending on the valuation either the positive equity in the car will be put towards the value of the new car or, I'm assuming, the negative equity will be added to the cost of the new vehicle. It may become an expensive exchange!

Example:

PCP final valuation = £10,000

Dealer offers = £9000

You need to add £1000 negative equity to the new car's price.

Thank you

 

[gilberto]

The OP could choose not to terminate and continue with the agreement. To buy a new car and expect to get out of it without losing some money is somewhat naive, that said I don’t think the OP expects to - the question was about penalties, not equity.

That is correct,just considering options

 

[flowrider]

That is correct,just considering options

PCP as a means of finance should be your last option when you have exhausted everything else.

My recently deceased MIL had her Honda on a PCP, and the 3 before that we have now discovered, and we havehad to VT the agreement after 2 years and pay nearly £2k to do it! What is frustrating me is that she used thesame dealer for all 4 cars and every time was put on a 4 year PCP even though she changed cars every 2 years. The dealer even sold a 5 year maintenance plan and a 4 year smart repair plan both paid upfront with no refund.