PCP Help

[P4D]

I bought an Abarth in August 2015 on PCP through Arnold Clark.

It's on a 4 year PCP with 8k pa.

I've had nothing but issues with it. It's been into the dealer for warranty work at least 10 times in the first 12 months. Also, the dealer is a 20 mile journey from where I live. Being young, they will not provide me with a courtesy car which means I have to get my parents to take time off work to pick me up from the dealer and drop me back when my cars ready. Also, I have to take time out of uni to take it in which in return is making me use miles and money for petrol to find out the issues haven't been resolved.

My parents have emailed numerous people including a few people high up at Arnold Clark and they simply don't care as long as they're getting my money each month.

I certainly don't want to keep it another two years as literally ever other month something else happens.

What's my best bet? VT'ing the PCP contract when I can or selling privately?

I'm a bit sceptical about VT'ing as I don't want it to prevent me from being able to get another vehicle on finance.

I don't want to wait out the contract either as:

a) I've gone over my mileage. Had it 18 months and done 18k.
b) Two alloys have damage.
c) Back bumper has a chip and some scuffs where someone reversed into it.

Cheers,

Pad

[anonymous-user]

You can only VT once you've paid off 50% of the loan, on a 4 year PCP you won't be anywhere near that after two years - remember the balloon payment at the end is included in the calcualation. Often 50% won't be reached until near the entire term is nearly up.

If you want out now you have to pay off the finance and sell the car.

[Butter Face]

charltjr said:

You can only VT once you've paid off 50% of the loan, on a 4 year PCP you won't be anywhere near that after two years - remember the balloon payment at the end is included in the calcualation. Often 50% won't be reached until near the entire term is nearly up.

If you want out now you have to pay off the finance and sell the car.

It's 50% of the total amount payable, not the 'loan'. So you take all of the payments+ balloon + any deposit paid. Then you halve it. Once you've reached that figure you can VT. but yes, 2 years + is the norm.

He can choose to pay up to the GT amount in one go and walk, which is normally the 'easiest' way out.

VT makes absolutely no difference to your credit, it's s statutory right under the consumer credit act so don't worry OP.

But honestly your car is under warranty and should be fixed. You can get the finance company involved if you're having multiple/repeated issues as essentially the car is theirs not yours anyway!

[djc206]

charltjr said:

If you want out now you have to pay off the finance and sell the car.

Not quite. You can sell the car and have the buyer pay off the balance of the finance and you keep any excess if there's equity/top up the purchase price to pay off the finance if there's still money owed. There's no need to settle the finance before a sale.

OP get a settlement figure from your finance company as a starter so you know how much you owe. If that's a lot more than the value you'll need to find the difference.

[P4D]

djc206 said:

Not quite. You can sell the car and have the buyer pay off the balance of the finance and you keep any excess if there's equity/top up the purchase price to pay off the finance if there's still money owed. There's no need to settle the finance before a sale.

OP get a settlement figure from your finance company as a starter so you know how much you owe. If that's a lot more than the value you'll need to find the difference.

Think my settlement was 11k. My car is 100% not worth 11k, you can buy near new Abarth 500's for 11k ish. Think I might wait a year. Seen people flogging 7 year old Abarths for 7k. My balloon payment is 6.5k.

[jen-apex]

Can't answer your question unfortunately but do you mind me asking what branch your Abarth is from?
I got a 595 on a 4 year PCP in December from my local AC Fiat and it's been a pain in the arse so far to say the least. Paid for AC protect and it wasn't applied and my contract has been set at 5k miles which isn't nearly enough and apparently it can't be increased.

[P4D]

jen-apex said:

Can't answer your question unfortunately but do you mind me asking what branch your Abarth is from?
I got a 595 on a 4 year PCP in December from my local AC Fiat and it's been a pain in the arse so far to say the least. Paid for AC protect and it wasn't applied and my contract has been set at 5k miles which isn't nearly enough and apparently it can't be increased.

It's from Salford, Arnold Clark Salford Vauxhall / Fiat / Abarth. I've been treated so poorly on numerous occasions and just had the worse luck ever with my car.

[truck71]

jen-apex said:

Can't answer your question unfortunately but do you mind me asking what branch your Abarth is from?
I got a 595 on a 4 year PCP in December from my local AC Fiat and it's been a pain in the arse so far to say the least. Paid for AC protect and it wasn't applied and my contract has been set at 5k miles which isn't nearly enough and apparently it can't be increased.

Are you saying you signed up to a PCP without discussing the annual mileage allowance?

[P4D]

truck71 said:

Are you saying you signed up to a PCP without discussing the annual mileage allowance?

Circumstances may have changed for them and therefore they need to increase their milage allowance?