Voluntary Termination advice please

[kells343]

Hi all

I am looking for some advice re a voluntary termination on a pcp. I think i may be being charged unfairly for VTing my car early!

The total cost was £27745
The car cost was £24495
Total interest for 3 year period £3250

However, i am handing the car back after 2 years and as i haven't reached the half way point, the finance company want me to pay an extra £1010. This would be fine, however when i asked them to reduce the interest payable (Thus reducing my halfway point), as the interest on the agreement was calculated over 3 years, and i am only at the 2 year point, they are refusing and saying that the total cost is the total cost whether its 2 or 3 years

Is this right?

The car is already being picked up in 2 days - I have asked for a manager to call me tomorrow so i can discuss with them in more detail and the above advice would be useful.

Thanks in advance - Kells343

[R0b]

Hello Kells343,

You can't reduce the interest simply because you have had the car for two out of the three years, that's not how it works.

The finance company is therefore correct. Voluntary termination is based on 50% of the total price payable under the agreement which includes:

1. the credit amount equivalent to the car's value at the time
2. any deposit you make
3. any interest over the 3 year period
4. admin fees.

[kells343]

Thank you