PCP Car Finance

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ewanrob
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PCP Car Finance

Post by ewanrob » Mon Jun 21, 2021 1:17 pm

Anyone any experience in this field, my son bought a new car just short of 3 years ago. He has a chance of working abroad with his company and the car wont be used for 6 month or more...just read a little on Voluntary Termination if 50% paid up...how do you go about actioning this and what are the pitfalls ?

Darthlaw
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Re: PCP Car Finance

Post by Darthlaw » Mon Jun 21, 2021 1:36 pm

1. Ring the finance company and ask for the figure. They'll tell you without much fuss. They'll also tell you if there's any additional to get you up to the 50%.

2. They'll also ask for the mileage and pro-rata this to the original annual manage he signed up to. If it's below, great. If not, there may be additional pence per mile penalties to pay.

3. Once you've agreed to the VT, they'll organise an inspection to check the condition of the car. This will be done to BVRLA standards, so it's wise to get acquainted with their standards.

4. If all is good, they'll take the car away, or arrange for it to be collected. Job done, finance settled. If there's any damage, you'll need to settle that off, then the finance will be setlled.

Pitfalls.

If the car is worth more than the 'settlement' figure, you're losing out. It may be worth selling this to a retailer instead of VT'ing.

If it has damage or excessive mileage vs the original pcp agreed mileage, this can be quite eye watering when the invoice lands.

pompeyclaret
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Re: PCP Car Finance

Post by pompeyclaret » Mon Jun 21, 2021 4:29 pm

Beware it's 50% of the finance, not the total car price.

I did this with a HP agreement, which was more favorable, as the mileage clause was invalid, not sure if the same for PCP. Very good deal with zero deposit, so was the best way to terminate early.

Clarets4me
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Re: PCP Car Finance

Post by Clarets4me » Mon Jun 21, 2021 4:42 pm

ewanrob wrote:
Mon Jun 21, 2021 1:17 pm
Anyone any experience in this field, my son bought a new car just short of 3 years ago. He has a chance of working abroad with his company and the car wont be used for 6 month or more...just read a little on Voluntary Termination if 50% paid up...how do you go about actioning this and what are the pitfalls ?
I presume his agreement allows for " Voluntary Termination " , some car finance is on a Personal Loan basis where you cannot " VT " ...

Do a quick valuation on " Webuyanycar.com ", with the correct mileage. Then add around £500/£700 to the that figure and that is roughly what a good condition car should make at auction. Then, if your son is in " negative equity ", you can VT the car .... make sure you get it properly valeted, and retune the Audio to Radio 4, get both keys, make sure the service book is stamped and get all the documents together before collection ... don't give them an excuse to start looking for damage ...

Best of luck to your son with his job !

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