PCP - when to cancel?

[BlockABoots]

Does having a  Guaranteed Minimum Future Value (GMFV)  applied to the PCP finance effect any of your right to withdraw  within 14 days policy or do all PCP finance plans come with GMFV?

 

Also on my PCP overview is has the price of the car and then theres 2 lines with are

 

Accessories         £69

Service Plans   £ 159

 

which are added to the 'Total on the road price' at the bottom of the agreement, what are these extra charges for?

[silver1011]

Accessories and a Service Plan!? 

 

Seriously though, I assume you've added a dealer fit accessory, floor mats, mud flaps, boot mat etc.

 

Your first service or couple of services have been paid in advance.

[silver1011]

10 hours ago, BlockABoots said:

Does having a  Guaranteed Minimum Future Value (GMFV)  applied to the PCP finance effect any of your right to withdraw  within 14 days policy or do all PCP finance plans come with GMFV?

 

It has no effect on the finance contributions/incentives. The GMFV or balloon payment is standard on all PCP finance arrangements.

[Michaelski]

Hi everyone,

Possibly a little bit out of left field this one, but if anyone has any information, I really would appreciate having the benefit of your thoughts/experience.

 

I'm now on my 2nd PCP (taken out Feb '18) and as I'm pushing (well, more leaning on) 79 years of age, I'm wondering what would happen if I were to shuffle off this mortal coil.     The PCP is in just my name, as my wife is registered disabled, and hasn't driven for some 19+ years, so if I were to snuff it, she wouldn't need the car - in fact wouldn't even be able to drive it.   The current amount of the PCP loan is probably now around £7,600 & the GFMV is £3,900 - leaving a  discrepancy of some £3,700.    The vehicle (cost £11,330 in Feb) is possibly/probably currently worth in excess of the GFMV, and as each month passes, the gap between the balance outstanding & the GFMV decreases.

 

I will indeed "try" to stay alive for as long as I can, but when one reaches my advanced years, I would prefer to have the definitive answer to what would happen if I did fall off my perch.  I posed this exact same  question to the Stealer at the time of taking out the first PCP, but he simply said that all that my wife would have to do, would be to return the car to them, as on the death of myself, the PCP agreement would be null & void.  BUT I don't really believe a word that they say, as my avowed opinion is that they simply say what a customer hopes to hear, rather than the truth and possibly risk losing a sale.

So, guys & gals, your input would be most welcome & thanks in anticipation

[Ootohere]

Good Halloween type post.

 

Front seat moved forward and rears removed and it could be used as a hearse then dropped off at a dealers by the Undertaker.

 

If you want to be buried in it they could arrange the digger and the plot and then the finance company might need to search a bit before doing the repossession.

Not sure what it would be worth at auction if anyone knew the history and find the car is possessed.

[33q]

Requested to pay mine off after 4 days. You get 28 days to pay. Cost to me £13.32 

 

They will not accept over £5000 by debit card over the phone. You have to pay by bank transfer. 

 

no no loss of any benefits 

[Gaz1985]

1 hour ago, Michaelski said:

Hi everyone,

Possibly a little bit out of left field this one, but if anyone has any information, I really would appreciate having the benefit of your thoughts/experience.

 

I'm now on my 2nd PCP (taken out Feb '18) and as I'm pushing (well, more leaning on) 79 years of age, I'm wondering what would happen if I were to shuffle off this mortal coil.     The PCP is in just my name, as my wife is registered disabled, and hasn't driven for some 19+ years, so if I were to snuff it, she wouldn't need the car - in fact wouldn't even be able to drive it.   The current amount of the PCP loan is probably now around £7,600 & the GFMV is £3,900 - leaving a  discrepancy of some £3,700.    The vehicle (cost £11,330 in Feb) is possibly/probably currently worth in excess of the GFMV, and as each month passes, the gap between the balance outstanding & the GFMV decreases.

 

I will indeed "try" to stay alive for as long as I can, but when one reaches my advanced years, I would prefer to have the definitive answer to what would happen if I did fall off my perch.  I posed this exact same  question to the Stealer at the time of taking out the first PCP, but he simply said that all that my wife would have to do, would be to return the car to them, as on the death of myself, the PCP agreement would be null & void.  BUT I don't really believe a word that they say, as my avowed opinion is that they simply say what a customer hopes to hear, rather than the truth and possibly risk losing a sale.

So, guys & gals, your input would be most welcome & thanks in anticipation

 

I would check your paperwork of whom you took out your PCP and hopefully somewhere in the small print of the t's & c's it will say.

Failing that I would contact your PCP provider and enquire, and then have them email something definitive or send out the relevant documents.

Get yourself an 'audit trail' for piece of mind.

All the best in 'trying to stay alive' for as long as you can! 

[33q]

Don't worry. Skoda is 'Simply Clever'. Provided your are subscribed to Skoda Connect It will just teleport your car 'upstairs' in time for your arrival.

 

Seriously.....just keep leaning!

[Lady Elanore]

2 hours ago, Michaelski said:

Hi everyone,

Possibly a little bit out of left field this one, but if anyone has any information, I really would appreciate having the benefit of your thoughts/experience.

 

I'm now on my 2nd PCP (taken out Feb '18) and as I'm pushing (well, more leaning on) 79 years of age, I'm wondering what would happen if I were to shuffle off this mortal coil.     The PCP is in just my name, as my wife is registered disabled, and hasn't driven for some 19+ years, so if I were to snuff it, she wouldn't need the car - in fact wouldn't even be able to drive it.   The current amount of the PCP loan is probably now around £7,600 & the GFMV is £3,900 - leaving a  discrepancy of some £3,700.    The vehicle (cost £11,330 in Feb) is possibly/probably currently worth in excess of the GFMV, and as each month passes, the gap between the balance outstanding & the GFMV decreases.

 

I will indeed "try" to stay alive for as long as I can, but when one reaches my advanced years, I would prefer to have the definitive answer to what would happen if I did fall off my perch.  I posed this exact same  question to the Stealer at the time of taking out the first PCP, but he simply said that all that my wife would have to do, would be to return the car to them, as on the death of myself, the PCP agreement would be null & void.  BUT I don't really believe a word that they say, as my avowed opinion is that they simply say what a customer hopes to hear, rather than the truth and possibly risk losing a sale.

So, guys & gals, your input would be most welcome & thanks in anticipation

 

 

Don't forget a PCP loan is just an H.P. loan in fancy clothes. You still have the 'rule of halves' to protect you. This is once you have paid off half the amount of the agreement (and this included the deposit you might have paid) you can legally hand the car back to the finance company without any penalties. It assumes you have kept the car in decent condition and haven't let dogs eat the inside of it or used it for rallying (ie a small wheel scuff here and a stone chip there, is fine). This can be done at anytime after you have passed this financial threshold - which will probably be printed on your document in really small print -  and it can  be used a way to get out of negative equity too, without your credit rating being affected. 

[Michaelski]

My heartfelt thanks to all of you (especially Lady Elanore) who have given me the advice,  & even to "Offski" (who I hope was speaking "tongue in cheek)  when he mainly suggested me staying alive for as long as I could, & if not, being buried in the damn thing???   But having run out of patience, I eventually succumbed to phoning Skoda's Financial Dept (DO NOT phone them, as their piped music is diabolical) & eventually (& I mean "eventually) the helpful, albeit somewhat uninformed girl - she had to put me on hold (more diabolical music) 2-3 times whilst she went off to "consult" some other person(s) who possibly did know the answer.

 

The definitive bottom line seems to be that if, and only if, one has paid off at least 50% of the loan agreement, the car can simply be handed back.  If this minimum 50% has not been paid off, then one (or at least their executors, as the PCP holder is gunna be dead) has to make up the necessary shortfall - ie if you had a PCP for £9k, then you had to have paid off £4.5k (your monthly payments DO come off this amount) before being able to return the vehicle.   Whatever shortfall there may be between the lessee snuffing it & this 50%, is payable by "someone" before the car can be returned.   The good Lord alone knows what happens if the PCP holder dies intestate: didn 't have equity or a surviving spouse?

 

So, & as I suspected, the Stealer simply trotted out a pack of lies in his eagerness not to lose the sale, & simply told me what he suspected that I wanted to hear, but at least I now know where I stand.

I'll just have to be swayed by Offski, and try to stay alive as long as I can, as it will be  another 15 months before my repayments reach this magical 50% figure!!!

[Lady Elanore]

If you can get a 'trade in' valuation that shows the car is actually worth more than the settlement figure for the finance, then don't forget you can sell the car, settle off the finance (which will save a bit of interest) and the money left is your equity. I know it sounds a bit morbid to talk about, but if you were in a state were you thought you wouldn't be driving again, then it would be worth looking into as a way to get rid of the car and make a little back on the sale. You can sell the car to anyone as long as the finance is settled off first (ie a bridging loan) or if you sell to a dealer, which is something I have done with several PCP cars, they will settle the finance and simply give you a cheque for any equity left  

 

Dealers do buy cars that aren't too old (say 3-4 years) for stock and settle the finance on them, you don't have to buy another car from them. Just be polite and ask to speak to the Sales Manager of the used car section, or similar etc and ask if they would like to buy the car for stock. 

[Michaelski]

Thanks for your,  & very helpful, further thoughts, Lady E, it is most appreciated, & I have taken it all onboard.  .       During a "slack" moment (possibly when Seann & Katya were hoofing it) in last weeks' Strictly Come Dancing, swmbo calmly announced that when I snuffed it, she intended to have me cremated, so whilst I definitely won't turn in my grave, I just may turn in my Urn.

 

But, the bottom line seems to be heed the advice of offski & 33q & "stay alive for as long as I can", content in the knowledge that for every month that I continue to draw breath, the magical 50% of the loan agreement draws ever nearer, & I can go to my eternal rest with my last living thought being "I screwed you too, VW Finance.  Hmmmmmmm.............

[Lady Elanore]

Is turning in your urn a 'T-urn' as opposed to a U-turn, or is a T-urn a thing for making a delicious hot drink? 

[Michaelski]

Hi Lady E, Ha ha, & very funny (unless you're actually leaning on the jamb of that particular door), although with regard to your question, am afraid that I'm not too sure, as I haven't been down that actual road yet - although swmbo seems to be unswervingly trying to direct me onto the access road.

I'll let you know (assuming that you're into "the mysteries of séances) when the time comes.

 

Keep on truckin', & remember that (according to swmbo) the very best "Spanish appetiser" is undoubtedly Julio Iglesias

[expostmanpat]

If you sign the finance agreement for example a month prior to taking delivery of the car, does the 14 day cooling off period start when you sign or when you take delivery? 

[womanofkent]

I would have thought that it is from when you sign the agreement, why are you taking out finance on a product you have not received or own? surely that means you may be paying before you actually see it.  I would not sign anything until the day you collect the car.

 

We signed the agreement on the day we collected the car, haven't used PCP before and only did it so we could get the money back.  We even had a personalised plate to transfer so that was done a week before we could collect the car apart from the order or sales invoice that was all we signed in advance.

[33q]

I'm a bit puzzled why you are signing so early.

 

I signed my finance details electronically in the comfort of my own laptop!

 

I don't have a paper copy.....I could...if I wanted

 

....and I paid mine off after 4 days....£13.32.....and you then have 28 days to pay that

[Doogle69]

6 hours ago, womanofkent said:

I would have thought that it is from when you sign the agreement, why are you taking out finance on a product you have not received or own? surely that means you may be paying before you actually see it.  I would not sign anything until the day you collect the car.

 

We signed the agreement on the day we collected the car, haven't used PCP before and only did it so we could get the money back.  We even had a personalised plate to transfer so that was done a week before we could collect the car apart from the order or sales invoice that was all we signed in advance.

I likewise signed my agreement on the day of collection then paid it off on day 13. Cost me £43 in interest but retained the 2 free services and the £1500 contribution.

[silver1011]

I signed my paperwork (electronically, from the comfort of my own home) a few weeks before collection.

 

The 14 day cooling off period starts from the minute you sign the paperwork. You're then charged interest daily, so ring up and notify Skoda Finance of your intention to exercise your right of withdrawal immediately, as in the same day, therefore no interest is incurred.

[Goldtw74]

Just out of interest does the paperwork allow you to change the date the direct debit comes out, as not sure as whether to pay it off.

[silver1011]

Your dealer should have asked you for your preferred day of the month. This will then appear on the paperwork that you sign.

 

If not, then no worries, you can ring up Skoda Finance and change it over the phone after the finance has been set-up.

 

The timing meant I had to wait until after the first DD had been paid, but it was pretty easy to do.

[Jonny86]

I signed up for a PCP agreement a few days ago and am looking to withdraw and pay off the loan. However, in addition to the SECCI form I signed a "New solutions agreement", and one of the paragraphs says;

 

Termination: your rights

You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the 
goods and to half the total amount payable under this agreement, that is £xxxxx.xx If you have already paid at least this amount plus any overdue 
instalments and have taken reasonable care of the goods, you will not have to pay any more."

 

This suggests they could ask for the car back as well as 50% of the nominal amount if I were to withdraw.  Did anyone who paid off PCP within the 14 days also sign the form with this clause?  This is separate from the SECCI form which states my right to withdraw within 14 days.

 

Thanks!

[Berisford]

Well, if I signed this form I don’t know, I simply called VW finance 4 days after delivery, they gave me a price to settle (4 days at £4 were added to the total) and the relevant account details. However, I waited for the confirmation letter that came just over a week later.

[33q]

See my reply above. Almost identical to Berisford 

 

i just phoned up and asked to pay to pay the amount due and confirmed no loss of deposit contribution or free servicing. 

Edited 3 April, 2019 by 33q
Spelling

[bone_tone]

1 hour ago, Jonny86 said:

I signed up for a PCP agreement a few days ago and am looking to withdraw and pay off the loan. However, in addition to the SECCI form I signed a "New solutions agreement", and one of the paragraphs says;

 

Termination: your rights

You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the 
goods and to half the total amount payable under this agreement, that is £xxxxx.xx If you have already paid at least this amount plus any overdue 
instalments and have taken reasonable care of the goods, you will not have to pay any more."

 

This suggests they could ask for the car back as well as 50% of the nominal amount if I were to withdraw.  Did anyone who paid off PCP within the 14 days also sign the form with this clause?  This is separate from the SECCI form which states my right to withdraw within 14 days.

 

Thanks!

This means you can end the agreement, by returning the car, in which case you will have to pay half of the total amount payable (if you haven't already). This is not the same as repaying the loan, which you can do at any time, at which point you will own the car completely.