Terminating a PCP early before 50% payments made

[Kan]

Hi, I am wondering if I can have some advice please. I have read through the the various threads, all v helpful but still not sure if I can terminate a PCP I have before I have paid half? An early discussion seemed to suggest I could but the updated FAQ's refer to VT when half has been paid. Any help grateful received, thanks! [MENTION=23709]rob[/MENTION]

[boothstownred]

Re: Terminating a PCP early before 50% payments made

Hi Rob. I am in the same situation as you trying to terminate before the half payment point. Everything I am reading suggests if you have not reached that halfway point then you have to pay the difference. However I have been told by a car dealership that if the car is valued at less than the half payment amount that I can hand it back. Can anybody confirm this?

[Kati]

Re: Terminating a PCP early before 50% payments made

tagging [MENTION=71570]R0b[/MENTION] xx

[R0b]

Re: Terminating a PCP early before 50% payments made

Hello,

You can terminate the agreement at any time prior to the final payment becoming due. The lender will probably say you have to pay up to 50% first but that's not what the law says and there is no criteria to be met just simply give notice to terminate at any point. If someone wanted to, they could terminate on the second day of the agreement.

Ill double check the guide as that might be a mistake.

[boothstownred]

Re: Terminating a PCP early before 50% payments made

Hi Rob. Thanks for your reply. I think I may have been a little vague on what I was asking so I will give a more detailed rundown of my situation. My car is a Nissan Leaf which is full electric. I am having no problems with the payments but due to the breakdown of a relationship it has become very difficult to charge up due to lack of positioning of the charge point. My half point total is £9851. I have made 22 payments of £140.75 and there was a deposit of £5041. Therefore I believe I have paid £8335.50 leaving a deficit of £1515.50. I have always believed that my two real options are to either tough it out for 10 months until I have reached the halfway point, or pay the £1515.50 and hand the car back. I recently took a courtesy call from the Nissan garage I purchased from asking for my comments. I told them the car was fine but I had a real issue with charging. He told me to go in and speak to them and they will see what they can do. I have been in today. The salesman looked at the contract and then went to see his business manager. After around 5 minutes he came back and told me it was my lucky day and he was about to save me around £4500. I still cant get those figures to stack up. He told me because it has depreciated so much, he said worth about £5500 which came as a shock as it has a balloon payment of over £7000 not due for another 2 years, that I can just hand back the car and only pay the excess mileage charge of around £250. I rang the finance company, RCI, who don't know what I am talking about and insist I owe the £1500
. To be honest I actually agree with them and not the guy at Nissan. Can you confirm that I will have to pay the £1500 shortfall. Also I have read many times on here that they cannot enforce the excess mileage charge. Is that true even though it is written in the contract.
By the way it is a PCP agreement. Thanks in anticipation of your reply.



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Hi again Rob. Just noticed a typo, the monthly payment are £149.75.

[Kan]

Re: Terminating a PCP early before 50% payments made

- - - Updated - - -

Great, thanks ROb!

[charitynjw]

Re: Terminating a PCP early before 50% payments made

I'll give [MENTION=71570]R0b[/MENTION] a nudge

[R0b]

Re: Terminating a PCP early before 50% payments made

Hi Rob. Thanks for your reply. I think I may have been a little vague on what I was asking so I will give a more detailed rundown of my situation. My car is a Nissan Leaf which is full electric. I am having no problems with the payments but due to the breakdown of a relationship it has become very difficult to charge up due to lack of positioning of the charge point. My half point total is £9851. I have made 22 payments of £140.75 and there was a deposit of £5041. Therefore I believe I have paid £8335.50 leaving a deficit of £1515.50. I have always believed that my two real options are to either tough it out for 10 months until I have reached the halfway point, or pay the £1515.50 and hand the car back. I recently took a courtesy call from the Nissan garage I purchased from asking for my comments. I told them the car was fine but I had a real issue with charging. He told me to go in and speak to them and they will see what they can do. I have been in today. The salesman looked at the contract and then went to see his business manager. After around 5 minutes he came back and told me it was my lucky day and he was about to save me around £4500. I still cant get those figures to stack up. He told me because it has depreciated so much, he said worth about £5500 which came as a shock as it has a balloon payment of over £7000 not due for another 2 years, that I can just hand back the car and only pay the excess mileage charge of around £250. I rang the finance company, RCI, who don't know what I am talking about and insist I owe the £1500
. To be honest I actually agree with them and not the guy at Nissan. Can you confirm that I will have to pay the £1500 shortfall. Also I have read many times on here that they cannot enforce the excess mileage charge. Is that true even though it is written in the contract.
By the way it is a PCP agreement. Thanks in anticipation of your reply.



- - - Updated - - -

Hi again Rob. Just noticed a typo, the monthly payment are £149.75.

I'll need to see the PCP agreement if you can upload it for me on here? Or send an email to Kati@leaglebeagles.info

PCP's slightly different to HP agreements in that there is a larger balloon payment at the end with smaller monthly repayments, and I think when you VT on a PCP your closer to the end of the agreement than physicially 50% through the term of the agreement. However, you still need only pay 50% of the total amount payable, no more.

If I can see the agreement then I can verify whether you need to pay it or not.

[Kan]

Re: Terminating a PCP early before 50% payments made

@R0b I will send over later when I get back from work, many thanks.