Anybody had joy ending a PCP early during Covid?

[Soleith]

Going to ask Audi if I can end my PCP deal earlier than normal on the A8. I know the standard rules about voluntary termination once you've paid half the agreement (I'm still under that, just over 2 years into a 4 year PCP and think it'd 38 months before normal hand back rights) but was wondering if anyone has tried to see if they could end the deal earlier without using the dreaded voluntary surrender that hits your credit file and if so what tactics you used to get there.

[Sarnie]

Soleith said:

Going to ask Audi if I can end my PCP deal earlier than normal on the A8. I know the standard rules about voluntary termination once you've paid half the agreement (I'm still under that, just over 2 years into a 4 year PCP and think it'd 38 months before normal hand back rights) but was wondering if anyone has tried to see if they could end the deal earlier without using the dreaded voluntary surrender that hits your credit file and if so what tactics you used to get there.

VT doesn't impact your credit file........you are invoking your consumer rights to settle the agreement, that both parties agreed to at the outset........

[Soleith]

Sarnie said:

VT doesn't impact your credit file........you are invoking your consumer rights to settle the agreement, that both parties agreed to at the outset........

Thanks, yes agreed. Unfortunately I'm before my VT point as I've not paid back half the agreement yet. Wondering if anyone has managed to negotiate a VT without being at that point due to covid etc.

[duckson]

Didn’t VT my M2 as would never hit it on the 3yr pcp I had but sold it and added a couple of grand to meet the settlement figure (was going to be sat on the drive barely used for months/a long time).

Does the car you have sell for similar amounts to the settlement figure?

[alistair1234]

Why don't you just sell it and pay off the finance? Or is it worth a lot less than the settlement figure?

[Soleith]

alistair1234 said:

Why don't you just sell it and pay off the finance? Or is it worth a lot less than the settlement figure?

Settlement figure to value is over 10k difference at this point in the PCP.

[Welshbeef]

If you are still looking at a Ferrari why not part x it ?

[Soleith]

Welshbeef said:

If you are still looking at a Ferrari why not part x it ?

Have spoken to Ferrari, it's possible of course but ultimately the settlement will still be more than what they'd pay and i'd rather not take a 10k bath if I can avoid it. If Audi won't budge, may see if Ferrari would be willing to split the difference on the settlement to get a sale though. Figured I'd try to go to the source first though and plead covid/don't need a car anymore

[Mandat]

Soleith said:

Going to ask Audi if I can end my PCP deal earlier than normal on the A8. I know the standard rules about voluntary termination once you've paid half the agreement (I'm still under that, just over 2 years into a 4 year PCP and think it'd 38 months before normal hand back rights) but was wondering if anyone has tried to see if they could end the deal earlier without using the dreaded voluntary surrender that hits your credit file and if so what tactics you used to get there.

You are able to end a PCP at any point in time that you choose.

All you have to do is settle the amount owing at that particular time. In your situation, you say that the outstanding balance is more that the the current value of the car, therefore you'll have to make a financial decision on whether to settle now, settle later or VT at the appropriate time.

[911gone]

Soleith said:

Have spoken to Ferrari, it's possible of course but ultimately the settlement will still be more than what they'd pay and i'd rather not take a 10k bath if I can avoid it. If Audi won't budge, may see if Ferrari would be willing to split the difference on the settlement to get a sale though. Figured I'd try to go to the source first though and plead covid/don't need a car anymore

Covid excuses are likely to lead to Audi offering you a payment break and/or contract extension.

'Don't need it anymore' won't wash I'm afraid, unless you want to suck up the ££ difference.

[PorkInsider]

Soleith said:

Welshbeef said:

If you are still looking at a Ferrari why not part x it ?

Have spoken to Ferrari, it's possible of course but ultimately the settlement will still be more than what they'd pay and i'd rather not take a 10k bath if I can avoid it. If Audi won't budge, may see if Ferrari would be willing to split the difference on the settlement to get a sale though. Figured I'd try to go to the source first though and plead covid/don't need a car anymore

You can always give it a go but I can't think of a good reason they'd want to oblige if it's just a case of them losing the £10k instead of you.

[BobbyA]

So you are trying to wriggle out of a finance deal early and avoid penalties to buy a Ferrari and using Covid as a reason?

Lovely world we live in.

[ThumperMc]

As part of a broader piece, I do wonder how the whole lease thing will work out over the next c6mths.

Surely a lot of people will be wanting to hand back, some maybe not able to pay, the latter being the issue for the lease Cos.

[Gio G]

Given the shortage of used cars at the moment, I suspect less will be in a position of negative equity. Keep getting emails from Audi dealer wanting to buy my car. OP I see you have an A8.. sort of makes sense your in negative equity..good luck..

G

[Soleith]

BobbyA said:

So you are trying to wriggle out of a finance deal early and avoid penalties to buy a Ferrari and using Covid as a reason?

Lovely world we live in.

Hey, at least I'm not taking cheap taxpayer backed loans to do it!

[Soleith]

Gio G said:

Given the shortage of used cars at the moment, I suspect less will be in a position of negative equity. Keep getting emails from Audi dealer wanting to buy my car. OP I see you have an A8.. sort of makes sense your in negative equity..good luck..

G

Many thanks. After speaking to them the answer was unsurprisingly no. Guess I'll just have to keep the a8 until next year then vt.

[Helicopter123]

Soleith said:

Gio G said:

Given the shortage of used cars at the moment, I suspect less will be in a position of negative equity. Keep getting emails from Audi dealer wanting to buy my car. OP I see you have an A8.. sort of makes sense your in negative equity..good luck..

G

Many thanks. After speaking to them the answer was unsurprisingly no. Guess I'll just have to keep the a8 until next year then vt.

What sort of bids are you seeing on your A8?

Surprised it's so far 'under the money' as these usually benefit from a hefty upfront discount and generous support from Audi on a deposit contribution?