audi - Voluntary PCP Termination

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Sun 4 Feb 2018 14:22
audi - Voluntary PCP Termination - Paolo75

Hi

Just a quick question regarding termination of pcp. As I understand you have the right to do this after 50% of the Total Amount Payable has been paid off the vehicle.

My question is does the deposit that was paid by the buyer and the sometimes a dealer contribution count towards the 50% total of what is required to be paid off?

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Sun 4 Feb 2018 14:28
audi - Voluntary PCP Termination - RT

Hi

Just a quick question regarding termination of pcp. As I understand you have the right to do this after 50% of the Total Amount Payable has been paid off the vehicle.

My question is does the deposit that was paid by the buyer and the sometimes a dealer contribution count towards the 50% total of what is required to be paid off?

No - it's 50% of the amount borrowed plus any fees/charges

www.thecarexpert.co.uk/car-finance-voluntary-termi.../

Your future credit rating is likely to be adversely affected

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Sun 4 Feb 2018 14:35
audi - Voluntary PCP Termination - Paolo75

No that article does not say 50% of the amount borrowed. It says 50% of the Total Amount Payable.

It says it also includes the GFV:

"The Total Amount Payable is the total amount borrowed plus interest and fees. It also includes the Guaranteed Future Value (GFV) on a PCP"

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Sun 4 Feb 2018 15:10
audi - Voluntary PCP Termination - RT

No that article does not say 50% of the amount borrowed. It says 50% of the Total Amount Payable.

It says it also includes the GFV:

"The Total Amount Payable is the total amount borrowed plus interest and fees. It also includes the Guaranteed Future Value (GFV) on a PCP"

You have to borrow the GFV and settle that part of the debt by either handing the car back or paying a lump sume to buy the car at the end of the term.

Either way, it doesn't include any deposit you, the manufacturer or the dealer have contributed.

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Sun 4 Feb 2018 15:53
audi - Voluntary PCP Termination - Paolo75

Okay - I have my head round it now. Thanks.

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Sun 4 Feb 2018 15:58
audi - Voluntary PCP Termination - RobJP

I'm pretty sure that the deposit (whether from manufacturer, dealer or yourself) IS included in the total figure.

However, your finance agreement will show the VT point and figures. It is a legal requirement.

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Sun 4 Feb 2018 18:47
audi - Voluntary PCP Termination - daveyjp
No reason it will affect credit rating. Handing a vehicle back early is a perfectly legal way of settling a finance agreement. It is not a default situation.

However with a PCP you will find the handback date is only a few months before the end of the loan agreement and the balloon payment is due, or the car is to be handed back anyway, so its not usually worth doing.
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Mon 5 Feb 2018 05:44
audi - Voluntary PCP Termination - Falkirk Bairn

If you are returning a PCP car early under the 50% rule then it is essential that you do not sign the Finance Company Papework on an "early return"- they can have lots of conditions / possible charges etc that you are not obliged to pay under Section 75 ......just state that you are returning the car under Section 75 - FULL STOP

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Mon 5 Feb 2018 09:59
audi - Voluntary PCP Termination - Bromptonaut
No reason it will affect credit rating. Handing a vehicle back early is a perfectly legal way of settling a finance agreement. It is not a default situation.

The termination will show up on a search. While it's not a default it is, from a lenders perspective, a 'hostile act'. Another lender may draw adverse inferences and refuse credit.

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Mon 5 Feb 2018 10:26
audi - Voluntary PCP Termination - gordonbennet

Another lender may draw adverse inferences and refuse credit.

Arguably a good thing for some people?

I know people who are paying the equivalent of substantial mortgage payments every month to put a new car (or two) on the drive, literally one missing wage packet away from ruin, haven't we been here several times before last time about ten years ago?

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Mon 5 Feb 2018 15:53
audi - Voluntary PCP Termination - Miniman777

Another lender may draw adverse inferences and refuse credit.

Arguably a good thing for some people?

I know people who are paying the equivalent of substantial mortgage payments every month to put a new car (or two) on the drive, literally one missing wage packet away from ruin, haven't we been here several times before last time about ten years ago?

Yes and blame PCP. Thin end of a nasty financial wedge. No one has a crystal ball, and when these deals are entered into, all is hunky dory and the affordability checks out, but personal situations change and that can impact the finances. I have never bought a car on PCP, and very unlikely too as change in circumstances could happen to anyone, and I dont like lining a dealer's pocket with my money without due cause. I'd rather pay cash, and then sell the car if I was heading for a financial black hole.

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Mon 5 Feb 2018 22:26
audi - Voluntary PCP Termination - Falkirk Bairn

I know of a couple in their forties. Wife's job disappeared & the Audi Q3 had to go back - they needed to pay some £3000 in early return fees.

That is bad but it was the tip of an iceberg - total debts - CC, Loans etc etc came to some £80K. They re-mortgaged for another £100K & cleared the debts to make a "fresh start".

Having dug the hole by overspending you would think they would be cautious - the wife gets a new job & to celebrate they were off to the USA for 3 week holidays - 45 year old & they started a new 30 year mortgage - 30 years rather than 20/25 years to keep the monthly payments low!!!

& there is now a Toyota CHR Hybrid in the drive.....................!!!!

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Tue 6 Feb 2018 10:32
audi - Voluntary PCP Termination - daveyjp

People like that either sink or swim, but can be heading to a miserable existence in retirement.

In 10 years time they will probably be looking at how they can retire early then wondering why they have no money to do so!

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