Audi Finance PCP and VT Options

[GFB]

My wife took out a 3 year PCP with Audi in September 2015 for a Q3. We paid a £3155 deposit and the PCP was based on credit of £29201.07.

Todate we have made 28 payments of £369.32 and wish to use the VT option. However when we check the Finance Agreement it quotes a termination figure of £18718.60 - a figure we won’t get to even if we pay the full 36 monthly instalments. They appear to have calculated this figure by adding the credit amount to the deposit, interest (at 6.12%pa), acceptance fee (£125) and option to purchase fee (£60). This makes a total of £37437.20 of which 50% is £18718.60?

The PCP was based on 8000 miles pa. The car has currently done just over 16000 so there are no excess mileage issues and it is in pristine condition.

is this correct? Does it mean we are stuck with the PCP for another 8 months?

rob Help?

[Huxie]

How much is the balloon payment?

[GFB]

How much is the balloon payment?

Hi thanks for your help. The balloon payment is £20900 or at least this is quoted as the final sum payable at the end of the PCP term.

Any help/guidance you can offer would be appreciated.

[Kati]

tagging R0b

[R0b]

Hello

I've seen this happen a few times before and I am not entirely sure if this is a new trick of the trade Audi and co. are doing but on the face of it, seems inherently unfair. The way the agreement has been calculated as you say, is that you will never reach the 50% mark at any time within the term of the agreement and it appears that, if you do VT to limit your liability, you are effectively paying more than you would had you completed all the monthly instalments. In effect, they are not preventing you from exercising your right to VT but it looks as if they are penalising you by doing so and therefore indirectly forcing your hand to make all of the monthly instalments rather than terminating early.

The only real way I can see you being successful is challenging this in court. Given the amount involved I would probably suggest you seek a proper legal advice for an opinion. The starting point would be to look at the unfair relationship provisions under s140A and s140B of the CCA

[GFB]

[QUOTE=R0b;n1389531]Hello

I've seen this happen a few times before and I am not entirely sure if this is a new trick of the trade Audi and co. are doing but on the face of it, seems inherently unfair. The way the agreement has been calculated as you say, is that you will never reach the 50% mark at any time within the term of the agreement and it appears that, if you do VT to limit your liability, you are effectively paying more than you would had you completed all the monthly instalments. In effect, they are not preventing you from exercising your right to VT but it looks as if they are penalising you by doing so and therefore indirectly forcing your hand to make all of the monthly instalments rather than terminating early.

The only real way I can see you being successful is challenging this in court. Given the amount involved I would probably suggest you seek a proper legal advice for an opinion. The starting point would be to look at the unfair relationship provisions under s140A and s140B of the CCA[/QUOT

Rob

thank you you for getting back to me so quickly. your advice is very helpful.

like you this seems very unfair to me and I will take your advice and seek legal assistance to challenge it in court.

I will keep you posted!

regards

Michael