PCP self termination

[Marathon12]

I am a new member and would like to say hello to everyone. I have read some of the posts on this topic and found the information very useful when I made a call to Nissan yesterday. Basically, I need to return my car as its effecting me financially and preventing me from being able to proceed with a mortgage. I am 2 years into the contract and was told yesterday I am two months away from the 50% mark. I was given two options, one is to pay the shortfall of over £600 now to bring me inline to the 50% or continue to make repayments for another two months, costing £378 a month. I would like the debt off my credit file asap but will struggle to pay the £600 now.

Do I have an option to return the car now without paying even though I am slightly below the mark. Also, once you terminate, how long does it take for the debt to be removed from your name?

thanks

[R0b]

Re: PCP self termination

Hello,

From a legal perspective, your right to terminate can take effect any time before the final payment becomes due but unfortunately (and bizarrely) almost all lenders seem to refuse to accept this position. If you gave notice to terminate now, you are still liable for the two months remaining to make up the shortfall but consideration by the lender should be taken into account where they are asking you to pay a sum of money you cannot afford in one lump sum - the FCA Rules covers this somewhere I believe. Therefore if you can afford to pay in 4 monthly instalments for the £600 you could offer to do that, but it would be helpful to explain in your letter that due to financial reasons, you are not able to pay the sum in one amount and propose a reasonable repayment plan.

In terms of removing it, that will depend how fast their department works. It should be updated within a reasonable amount of time but this could also be up to a month usually as credit reference agencies generally update records at the end of the month or thereabouts.

[Marathon12]

Re: PCP self termination

Hi Rob,
Thank you for your reply. I spoke to Nissan earlier and they have sent me the pack. There is a form enclosed for me to sign which also mentions I accept the excess charges if I have gone over the mileage which I know I have. Should I not sign this and look for your template to give notice?
Many thanks

[R0b]

Re: PCP self termination

Whether you sign it or not is entirely your decision. However, if you do sign it then Nissan might hold you to it and say that you agreed to pay for excess mileage charges and you are bound by it and immediately you are on the back foot. In practice, section 100 limits your liability and does not allow for the recover of damages/compensation for breaching the agreement. Section 173 of the CCA specifically says that a lender cannot contract out of these provisions under the Act and if they attempt to do so, then that clause or condition is deemed to be void.

The reality is that it is probably going to be much more hassle to trying to argue out of it if you do sign it than just not signing at all. Nothing in the CCA says you need to sign any of their paperwork in order to terminate the agreement.

[beaconsman]

Re: PCP self termination

Interesting as we are considering handing back our car to go another marque as the discount offered is greater and the depreciation is much less over the full term. we will see what happens, right now we need it over the winter as weather isn't looking great and it has intelligent AWD which we need here if it snows.