Voluntary termination of PCP
Discussion
Yes I know this has been asked a hundred times before, but give me a chance.
We bought the wife a car around 2 1/2 years ago, now I know I need to have paid half the amount owed on the car, I paid a decent deposit and I am now around a £1000 short of the "halfway point". So I called the finance company today to say I wished to make a payment of £1000 to my car and then terminate my contract early. But they have said this isn't possible.
Apparently my PCP contract is NOT secured against the car and I have no right to vomuntary termination.
Has anyone ever heard of this before? Is there a type of PCP out there where you aren't entitled to hand the car back after you have paid half the owed amount? I have had a search online and I am struggling to see anything related, and my contract is quite vague.
If anyone has any experience in car finance any advice would be appreciated, or send me a PM if possible.
We bought the wife a car around 2 1/2 years ago, now I know I need to have paid half the amount owed on the car, I paid a decent deposit and I am now around a £1000 short of the "halfway point". So I called the finance company today to say I wished to make a payment of £1000 to my car and then terminate my contract early. But they have said this isn't possible.
Apparently my PCP contract is NOT secured against the car and I have no right to vomuntary termination.
Has anyone ever heard of this before? Is there a type of PCP out there where you aren't entitled to hand the car back after you have paid half the owed amount? I have had a search online and I am struggling to see anything related, and my contract is quite vague.
If anyone has any experience in car finance any advice would be appreciated, or send me a PM if possible.
Jobbo said:
HP would still be secured on the car. I VT'd an HP with balloon in 2004 without any problem.
The VT right will be set out in the finance agreement. What does that say?
I can't see a single mention of VT on it. The agreement is titled "PCP Advantage FDC", so it is PCP. The issue is if there is a type of PCP that states I am not entitled to VT after half owed amount is paid? And I can;t find anything to confimr this one way or another.The VT right will be set out in the finance agreement. What does that say?
stepmeek said:
I can't see a single mention of VT on it. The agreement is titled "PCP Advantage FDC", so it is PCP. The issue is if there is a type of PCP that states I am not entitled to VT after half owed amount is paid? And I can;t find anything to confimr this one way or another.
Ignore the title - the agreement is what is contained in the body and the title could say 'Spamface Arse' but it'd still be a car finance agreement.There should be some illustrations of figures stating what 1/3 and half the payments are. VT is a statutory right so it doesn't have to say 'Voluntary Termination' but any reference to half the sum payable under the agreement will be referring to it, possibly obliquely.
I would query how close you are to the end date of the PCP anyway; most PCP deals I've been offered have reached the halfway point allowing VT very close to the normal end date when you can hand back the car. Without looking at your full agreement I can't give any more advice; and I wouldn't be willing to give specific advice on a forum anyway.
stepmeek said:
steve-5snwi said:
Have you hpi'd the car to see if your agreement number is registered against the car ?
No, what would this involve? do all vehicle checks show this?If it's HP with a ballon or a PCP agreement then it should show as against the car, otherwise it's a personal loan agreement and you should have had this explained.
Jobbo said:
stepmeek said:
I can't see a single mention of VT on it. The agreement is titled "PCP Advantage FDC", so it is PCP. The issue is if there is a type of PCP that states I am not entitled to VT after half owed amount is paid? And I can;t find anything to confimr this one way or another.
Ignore the title - the agreement is what is contained in the body and the title could say 'Spamface Arse' but it'd still be a car finance agreement.There should be some illustrations of figures stating what 1/3 and half the payments are. VT is a statutory right so it doesn't have to say 'Voluntary Termination' but any reference to half the sum payable under the agreement will be referring to it, possibly obliquely.
I would query how close you are to the end date of the PCP anyway; most PCP deals I've been offered have reached the halfway point allowing VT very close to the normal end date when you can hand back the car. Without looking at your full agreement I can't give any more advice; and I wouldn't be willing to give specific advice on a forum anyway.
I think you've misread what I said - I didn't express an opinion on what the OP's agreement is, since I haven't seen it. But the heading stating PCP is not definitive. It depends on what is in the body of the agreement.
However, I can't see why an unsecured loan would ever have 'PCP' written at the top so he needs to go through the body of the agreement properly.
However, I can't see why an unsecured loan would ever have 'PCP' written at the top so he needs to go through the body of the agreement properly.
Jobbo said:
I think you've misread what I said - I didn't express an opinion on what the OP's agreement is, since I haven't seen it. But the heading stating PCP is not definitive. It depends on what is in the body of the agreement.
However, I can't see why an unsecured loan would ever have 'PCP' written at the top so he needs to go through the body of the agreement properly.
Ah got you, I've read it again and I thought you were referring to his agreement.However, I can't see why an unsecured loan would ever have 'PCP' written at the top so he needs to go through the body of the agreement properly.
I also can't see why it would have the words PCP if it's unsecured but it's a crazy world we live in
There is the chance that the person setting up the finance has put the wrong VIN/VRM in when setting it up, that's happened (not to me) before that I know of!
Joey Deacon said:
Just out of interest why are you so desperate to get rid of the car that you are willing to pay £1000 to get shot?
If it isn't a PCP with VT, can you just pay off the outstanding finance and sell it?
Because I now have a company car, so I have a three cars sitting in the drive, one of which never gets used. I dont have 14k sitting in the bank to pay off the value of the car, I do have £1000 to VT it thoughIf it isn't a PCP with VT, can you just pay off the outstanding finance and sell it?
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