Terminted the finance agreement last week, but it took that long for vwfs to contact me.

Just dropped the car off at the auction house (bca) and they paid so little attention to it.

Terminating the contract got rid of my negative equity and allowed me to purchase my III much more easily.

Also, if you are on a PCP and over your mileage, when you terminate you don't get any excess mileage charges. Not only did I get this in writing, but they have also confirmed that it does not have any adverse effect on my credit rating.

Worth bearing in mind.

If I do it again in three years, I will just make sure (like I did this time) that I get approval for the new car prior to termination.

So, goodbye forever octyII forum. See you on the III.....

I didn't think you could voluntary terminate a pcp?

It only used to be an option for true hire purchase agreements. Was your old octy on a pcp then?

Yes, it was a PCP.

And, contract was for 80k miles over 42 months,

Payed over half, with 96k on the clock, and even though the contract states that they will pro-rata it, they did not.

Lots of people voluntarily terminate their PCP's and its v common; as stated shouldnt have to pay excess mileage and does not affect credit score, provided 50% of the total agreement value is paid can be arranged at any time.

100% worth doing if you go to trade a PCP'd car and are told it is worth less than what is owed; why let it be a problem for you when you can make it the finance companies issue, after all more than likely they've mucked up the GFV figures if you end up in that state after 50% of the term is paid.

Nearly did this with a VW Polo that traded for 1500 quid less than owes almoat at the end of its 3 year agreement, faced having to pay the deficit on my new finance or keep the car until the final payment after which I could hand back meaning we'd have had 3 cars for 3 months; righted itself in the end but understand why people do it.

What has made it even more beneficial to me is that even though I do 35k per year, the PCP was based on the max Skoda would allow which is 80k. My new car is based over 77k.

It is quite well balanced in my favour to do this.

Will be intrigued to see what happens next time.

Interesting. It might not affect your credit score but I can assure you it will affect any lenders decision to offer you the same hire purchase product again in the future.

Do you guys generally put down the least amount of deposit you can then? I put down about £3k on my Blackline. With hindsight maybe it wasn't the best thing to do.

Interesting. It might not affect your credit score but I can assure you it will affect any lenders decision to offer you the same hire purchase product again in the future.

I did this with my Peugeot to skoda. Made sure got finance approval on the octy and then told pug to collect the car.

You may be right and it may cause me a problem if I stay with skoda for my next car, but only time will tell.

It does seen very easy to get car finance (my wife just has, she is self employed with a very low salary- so it might be I do it in her name.

Can't worry about what will happen in 3 years