Help on voluntarily terminating PCP calcs pls :confused:

[Ken Figenus]

Mrs just got made redundant. Best get rid of her EV - she has about 10 months left and we intended to hand it back anyway. Today's settlement amount is about £4k over retail and prob £8-10k over trade in. So no thanks, esp as it is under its 5k pa mileage allowance:

So, as I understand it, the Total Amount Payable in a PCP is the overall cost of the vehicle, plus interest and fees on what is borrowed. We need to have paid half of that to voluntarily terminate. Calculations:

Car cost: £51,035
Deposit: £13,210 (max they would allow - now I know why...)
Dealer deposit contribution: £1750
Credit: £36,074.50
Balloon payment​: £26,385.40 due 1/11​/25

TODAY COST TO BUY THE CAR OUT:
Outstanding balance​ £29,678.28
Interest saving​ £747.10
TOTAL settlement amount​ £​28,931.18

​​I calculate what we have paid in is

Deposit total: £14960
Capital paid off: £36,074 - £28,931 = £7143
TOTAL: £22,103 paid off

So if car cost was: 51,035 - 14960 deposit = £36,075 + fees + interest at 5.1% over the period?

And then I'm LOST! Are we within reach of soon handing it back and paying nothing more? Funny how these were over when we got it!

Thanks for any help!

[HTP99]

Once you have paid 50% of the total amount payable, you can't VT the car.

[Mr Overheads]

What is the car worth if you sold it yourself on say PH or Autotrader

[Mark V GTD]

HTP99 said:

Once you have paid 50% of the total amount payable, you can't VT the car.

I presume the above is a typo and you mean ‘can VT the agreement and return the car.
To be clear - the total amount payable is simply your initial payment, all the monthly payments and the final payment added together.

[Ken Figenus]

Mr Overheads said:

What is the car worth if you sold it yourself on say PH or Autotrader

I did pop that in first para - i'd risk being be about 5k down.

[Mark V GTD]

OP - have you paid more than half the total amount payable as defined in my last post? If you have you can VT.

[Ken Figenus]

Mark V GTD said:

presume the above is a typo and you mean ‘can VT the agreement and return the car.
To be clear - the total amount payable is simply your initial payment, all the monthly payments and the final payment added together.

Nasty typo!

Your explanation sounds simple - thanks. I include my deposit, dealer deposit, all the monthlies and the balloon? Then divide by two? If we are over half that figure in in what we have paid in to date - that's all monthly payments plus deposits then we can VT? Cheers.

[AllyM]

No prospect of her getting another job in reasonable time and holding on to the car? Given the large deposit already in, I’d expect the monthlies are relatively low?

[Ken Figenus]

She wants something faster as she still misses her M235i !

To be fair I think the balloon will be up to 10k out over any trade in value come Oct 2025... Its likely a good move to VT.

[Ken Figenus]

Thanks for the help.

I think that half the total amount due is 28081 and 25661 has been paid to date with 10 months to go. If we add 6 more monthlies then we get to 28127. This is then month 32 of 36 so we can save 4 x 411 if we can crash out then and just hand it back. VW can cope as teh Chinese chop their EV legs off...

Can I have a star in my maths book pls and a Fredo?

Cheers

[highpeakrider]

VT at 50% and it’s gone, with Audi VT also removed the mileage element.
It will all be detailed in your PCP aggrement.

[Mark V GTD]

Ken Figenus said:

Nasty typo!

Your explanation sounds simple - thanks. I include my deposit, dealer deposit, all the monthlies and the balloon? Then divide by two? If we are over half that figure in in what we have paid in to date - that's all monthly payments plus deposits then we can VT? Cheers.

No you only include the money payable under the agreement by yourself - not the dealer contribution, ie; deposit, all the monthlies and the balloon

[bennno]

Just call your finance provider and ask them about the halves value for vt and where your payments to date correspond with that.

It’s one call and you’ll have the actual answer.

[anonymous-user]

Seems like a crazy expensive way to do 5K miles a year, especially if you get bored before the end and want to buy yourself out.

[interstellar]

I seem to recall if you VT you wont be able to take finance again from that funder in the future, I might be wrong but did hear that on my travels.

Edited by interstellar on Sunday 9th February 13:50

[HTP99]

interstellar said:

I seemt to recall if you VT you wont be able to take finance again from that funder in the future, I might be wrong but did hear that on my travels.

They can blacklist you, but it is unlikely.

[Ducati996R]

HTP99 said:

interstellar said:

I seemt to recall if you VT you wont be able to take finance again from that funder in the future, I might be wrong but did hear that on my travels.

They can blacklist you, but it is unlikely.

Call the finance company and they will confirm the VT figure
I’ve done it a few times and never had any problems getting another PCP or any finance

[Dimebars]

The calculation is:

1. Car Cost: £51,035
2. Interest: £x.xx

3. Total Payable: 1 + 2
4. VT Amount: 3 * 0.5

5. VT Point: (4 - (Deposit + Contribution)) / Monthly Payment

All of this should be set out clearly in your agreement, especially "3" and "4" above, and the finance provider will most likely be able to tell you over the phone what the VT value is and how far from this you are. Keep in mind as well that if you're not at VT point yet, you can pay the difference to the VT value and hand it back anyway.

There are a few blanks in your OP to be able to work it out for you - interest amount & monthly payment. The balloon muddies things a little but it's all included in Total Payable.

The current settlement amount has no bearing on the VT calculation

[bennno]

Dimebars said:

The calculation is:

1. Car Cost: £51,035
2. Interest: £x.xx

3. Total Payable: 1 + 2
4. VT Amount: 3 * 0.5

5. VT Point: (4 - (Deposit + Contribution)) / Monthly Payment

All of this should be set out clearly in your agreement, especially "3" and "4" above, and the finance provider will most likely be able to tell you over the phone what the VT value is and how far from this you are. Keep in mind as well that if you're not at VT point yet, you can pay the difference to the VT value and hand it back anyway.

There are a few blanks in your OP to be able to work it out for you - interest amount & monthly payment. The balloon muddies things a little but it's all included in Total Payable.

The current settlement amount has no bearing on the VT calculation

You've just made something simple way more confusing than it needs to be.

VT = 50% of the total payable under agreement (including interest). This total will be shown on the finance agreement.

Then just add up everything paid in terms of deposits and monthly payments and compare to the VT value

Even better just pick up the phone to the finance company and they will tell you exactly.

We got an 11k manufacturer deposit contribution on a Renault Zoe years ago and when I VT'd it that was included as if we'd paid it.

[Dimebars]

bennno said:

You've just made something simple way more confusing than it needs to be.

VT = 50% of the total payable under agreement (including interest). This total will be shown on the finance agreement.

Then just add up everything paid in terms of deposits and monthly payments and compare to the VT value

Even better just pick up the phone to the finance company and they will tell you exactly.

We got an 11k manufacturer deposit contribution on a Renault Zoe years ago and when I VT'd it that was included as if we'd paid it.

The OP wanted to know how to calculate it, so I told him

As I said in my post, the funder will tell him over the phone, and the agreement will make it crystal clear what the values are