PCH Termination
Discussion
As title. What are my rights?
So i worked as a courier for 11 years. Last November someone rear ended and wrote off my trusty transit custom. It was starting to get ropey anyway so i took the offered 6k and took a new etransporter out on a 24 month pch.
Ive now been made redundant and obviously i cannot afford the repayments. Ive tried to be reasonable with VW Financial Services but they are only offering me 2 options. 1. Terminate contract early at a cost of £4700 which i cannot afford. 2. Preferential Termination which involves me going to local VW dealer, they take the van off my hands but i need to take another (cheaper) lease deal off them. To be honest i cant afford that either.
The van is almost 60k new and ive covered just over 6400 miles of a 40000 mile contract. Ive said surely the sensible thing is for them to get it on their forecourt asap to get as much from the van as possible but they wont budge.
Thoughts guys?
So i worked as a courier for 11 years. Last November someone rear ended and wrote off my trusty transit custom. It was starting to get ropey anyway so i took the offered 6k and took a new etransporter out on a 24 month pch.
Ive now been made redundant and obviously i cannot afford the repayments. Ive tried to be reasonable with VW Financial Services but they are only offering me 2 options. 1. Terminate contract early at a cost of £4700 which i cannot afford. 2. Preferential Termination which involves me going to local VW dealer, they take the van off my hands but i need to take another (cheaper) lease deal off them. To be honest i cant afford that either.
The van is almost 60k new and ive covered just over 6400 miles of a 40000 mile contract. Ive said surely the sensible thing is for them to get it on their forecourt asap to get as much from the van as possible but they wont budge.
Thoughts guys?
I’ve not heard of preferential termination but my direct experience of ending a VWFS lease early was liability for 55% of the outstanding payments. Because PCH is only a lease agreement and has no option to purchase, the situation you are in now is the biggest downside.
Other options I can think of are exploring the possibility of transferring the lease. That would require it being acceptable to VWFS and finding someone who wants the van. Alternatively have you told VWFS you can’t afford the payments? They may be able to restructure/pause the payments to give you some breathing space.
Other options I can think of are exploring the possibility of transferring the lease. That would require it being acceptable to VWFS and finding someone who wants the van. Alternatively have you told VWFS you can’t afford the payments? They may be able to restructure/pause the payments to give you some breathing space.
tallpaul26 said:
I ve not heard of preferential termination but my direct experience of ending a VWFS lease early was liability for 55% of the outstanding payments. Because PCH is only a lease agreement and has no option to purchase, the situation you are in now is the biggest downside.
Other options I can think of are exploring the possibility of transferring the lease. That would require it being acceptable to VWFS and finding someone who wants the van. Alternatively have you told VWFS you can t afford the payments? They may be able to restructure/pause the payments to give you some breathing space.
55% used to be the case. I’ve done this in the past myself. However, things have changed. I recently early terminated a PCH and the only rebate was a token time value of money rebate of a few quid. Fortunately I only had 2 months left to run. VWFS are horrendous to deal with IME, there is nobody with any knowledge or decision making ability you can speak with. The staff might as well be out of jobs as they add no value. I guess this is part of their plan. Never again. Other options I can think of are exploring the possibility of transferring the lease. That would require it being acceptable to VWFS and finding someone who wants the van. Alternatively have you told VWFS you can t afford the payments? They may be able to restructure/pause the payments to give you some breathing space.
The number 1 pitfall of leasing/PCP/PCH which is why some people don’t or won’t do it…. You’re on the hook for the monthly repayment irrespective of your income security.
Don’t suppose you can sell it privately yourself either and pay off the contract?
TBH a £4.5k bath on a new and expensive vehicle like this so early in to its contract doesn’t sound too bad?!
Don’t suppose you can sell it privately yourself either and pay off the contract?
TBH a £4.5k bath on a new and expensive vehicle like this so early in to its contract doesn’t sound too bad?!
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