terminate PCP?

[ednmra]

Due to cardiac medical treatment I have to stop driving for 6 months. I'm on a 42 month PCP and am currently about 30 months into it.

There seems no point in my having the car on the driveway doing nothing, while still paying nearly £170 a month.

So I'm going to contact the dealer and get it taken back. Then when the 6 months is up I'll see what new deals are around. Shame, because I like the car and it hasn't even done 12000 miles yet!

The point is, what should I expect from the PCP if I do this? Will I simply have to stop monthly payments, or pay some cash towards it, or what?

Advice appreciated.

[Dr Zoidberg]

If you are past 50% of the total amount payable under your agreement, you can do a voluntary termination, and hand it back with no further costs.

Unfortunately, you are unlikely to be at that point after just 30 months so you'd have to pay the shortfall to bring you up to that point.
I expect your choices are to pay 6 months payments to keep the car on the drive and then start using it again at that point, or pay 6 months payments to *not* have the car on the drive.

 

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

 

[timxue]

good luck to u

[themanwithnoaim]

Sorry to hear your news Ed but, glad your still here to tell the tale. 30 months is too soon to VT as already stated, you might as well pay to keep on the drive or could a family member benefit from it & save the brake discs from big rust issues

[glosrich]

Probably not far off VT on a 42 month agree ment, maybe 36 months.

Just call Skoda finance with your agreement number and ask them.

 

[SkodaVRS1963]

As Dr Zoidberg says, you can't VT unless you've paid 50% of the on the road price.

 

You either (as I did) pay VWFS an amount that gets you to 50% so that you can VT or suck it up.

 

It's one or the other.

Edited 2 April, 2017 by SkodaVRS1963

[KarlO3V5]

Above is right - here's a link that might help

 

https://www.hypermiler.co.uk/car-finance/car-finance-101-what-is-vt-voluntary-termination

[Dempsek]

Similar problem hear, just waiting for my heart op, fortunately for me I won't be able to drive for a short time after I have the op. Just after the start of my heart problem I had to stop driving for a six weeks and it could have been months I thought about the car. 

VTing the car gives you no colateril for the next one, so if you have the money for the next deposit then you can VT at 50% of car value.  if you do not, then you might be better of paying the monthly payments @£1020.

 

Speedy recovery.

[threadbear]

Hope your feeling better soon. I VT`d my Polo after 2 years into a 3 year PCP agreement, coughing up £9.05 to settle up. The only good thing I can say about my PCP was that my repayments were sufficiently low to allow me to save money each month to make up a deposit on my current Octavia. 

[ednmra]

Heard from Skoda finance and I can end the pcp any time now. Give it back or buy it for about £8800

[themanwithnoaim]

If you're happy with it, buy it if not, cut your losses.

 

Either way all these 1.4 tsi owners getting heart problems I better get shot mine quick, anybody interested? 

 

1 careful owner, never raced or raylied well, nearly never !!!

[SkodaVRS1963]

5 hours ago, ednmra said:

Heard from Skoda finance and I can end the pcp any time now. Give it back or buy it for about £8800

Those numbers look suspect.

 

30 months into a 42 month agreement and you can buy for £8800?

 

The GMFV must have been about £7.5k?

[themanwithnoaim]

18 hours ago, SkodaVRS1963 said:

Those numbers look suspect.

 

30 months into a 42 month agreement and you can buy for £8800?

 

The GMFV must have been about £7.5k?

Depends on the level of deposit, kinda guess it wasn't minimum.

[ednmra]

When it started I traded in my Mk. 2 and had to add about £2K if I remember rightly.

[SkodaVRS1963]

On 04/04/2017 at 13:34, themanwithnoaim said:

Depends on the level of deposit, kinda guess it wasn't minimum.

 

The GMFV has nothing to with deposit?

 

A new car at £24 k is worth £x k after 42 months, the deposit doesn't enter into it?

[LewJo]

4 hours ago, SkodaVRS1963 said:

 

The GMFV has nothing to with deposit?

 

A new car at £24 k is worth £x k after 42 months, the deposit doesn't enter into it?

 

Correct, the two things that affect the GMFV are term of agreement and declared mileage. 

 

My my guess is the mileage for the agreement wasn't all that high. Although the time the car for purchased Skoda were still being rather optimistic surrounding residuals.

[themanwithnoaim]

12 hours ago, SkodaVRS1963 said:

 

The GMFV has nothing to with deposit?

 

A new car at £24 k is worth £x k after 42 months, the deposit doesn't enter into it?

There isn't £24 k 1.4 tsi SE nowdays let alone 3 years ago hence, a £7.5 k GMFV is very optimistic too.

 

The size of deposit does alter the monthly payments & therefore WILL affect the settlement charge of £8,800 whatever the GMFV. The settlement fee is the important bit, nobody cares about GMFV or even the amouny of depreciation, the bottom line is always "HOW MUCH"

 

 

Edited 6 April, 2017 by themanwithnoaim

[ExSEAT]

On the VT, is the value 50% of what you owe or 50% of the overall value of the vehicle originally. I.e. 24k car, 12k final value, 12k must be paid off? Or if you only have 9k credit over the 3 years must you pay off 4.5k minimum?

 

I'm guessing its the former!  

[LewJo]

3 hours ago, ExSEAT said:

On the VT, is the value 50% of what you owe or 50% of the overall value of the vehicle originally. I.e. 24k car, 12k final value, 12k must be paid off? Or if you only have 9k credit over the 3 years must you pay off 4.5k minimum?

 

I'm guessing its the former!  

 

It it would be 50% of the credit taken out including the balloon payment, it even quotes how much you need to have paid off in your finance paperwork before you an VT it. You can also VT early and pay the difference or do what I've done... get your friendly dealer to take the hit for any negotiable value while still passing on a discount to your new car. Given the discounted prices floating around for my new motor I actually got a better deal this way.

[ednmra]

All very interesting. In effect, they are going to simply collect  my car, I get no cash nor do I pay any more.

At the end of my 6 month "holiday" ,  assuming I am ok to drive again, I will simply look for a deal on either a new car, or nearly new second-hand one, see what discounts and/or deals are around, and kind of go from scratch.

I've never lacked a trade in before so don't know quite what to argue in the way of purchase discount. All new territory to me. Might go for Fabia 1.2 [110 hp] but it sounds a bit weedy and anyway it is still early days.

[SC03OTT]

33 minutes ago, ednmra said:

All very interesting. In effect, they are going to simply collect  my car, I get no cash nor do I pay any more.

At the end of my 6 month "holiday" ,  assuming I am ok to drive again, I will simply look for a deal on either a new car, or nearly new second-hand one, see what discounts and/or deals are around, and kind of go from scratch.

I've never lacked a trade in before so don't know quite what to argue in the way of purchase discount. All new territory to me. Might go for Fabia 1.2 [110 hp] but it sounds a bit weedy and anyway it is still early days.

 

My wife just bought a 1.2TSI 90 Fabia. Actually goes pretty well. 

[themanwithnoaim]

7 hours ago, ednmra said:

All very interesting. In effect, they are going to simply collect  my car, I get no cash nor do I pay any more.

At the end of my 6 month "holiday" ,  assuming I am ok to drive again, I will simply look for a deal on either a new car, or nearly new second-hand one, see what discounts and/or deals are around, and kind of go from scratch.

I've never lacked a trade in before so don't know quite what to argue in the way of purchase discount. All new territory to me. Might go for Fabia 1.2 [110 hp] but it sounds a bit weedy and anyway it is still early days.

Take a look at PCH's

 

There are some very good 2 or 3 year deals out there

[Dempsek]

For the same monthly payment do a search see what you could get on PCH. Then if you saved your payments they could act as your deposit. But remember to also factor in saving for your next deposit.

I tried the same thing and decided to keep what I've got.

[SkodaVRS1963]

On 07/04/2017 at 01:14, LewJo said:

 

It it would be 50% of the credit taken out including the balloon payment

 

No, no and thrice no.

 

It's 50% of the vehicle's sale price.

 

Please think before posting.

[LewJo]

21 minutes ago, SkodaVRS1963 said:

 

No, no and thrice no.

 

It's 50% of the vehicle's sale price.

 

Please think before posting.

 

That's not what Skoda finance told me when I enquired about a VT, I'm guessing the finance company were wrong then?