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I really want the new focus rs
but only 12 months into 36 month pcp
Has anyone ended pcp early and what are the penalties
but only 12 months into 36 month pcp
Has anyone ended pcp early and what are the penalties
Ending pcp early
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Well even if you put a deposit now there is a 8-12 month waiting list.
My dealer said if I ordered mid Feb the quickest I could expect is September at a push.
but there told to advise 12 months lead time.
My dealer said if I ordered mid Feb the quickest I could expect is September at a push.
but there told to advise 12 months lead time.
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On the pcp note I think it is strongly advised not to end that early but wouldn't hurt to call for a settlement figure
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I did put down a big deposit on the m135
I think it's actually when you've paid 50% of the money due under the agreement that you can voluntary terminate, so that wouldn't necessarily be 24 months into a 48 month agreement.
It shouldn't be too far away though.
To the OP, you can exit a PCP anytime you like, you're just selling the car and settling the finance same as a 'normal' HP agreement.
If the offer for your car is less than the settlement figure, then as somebody else has said you may have to add some money to clear it.
Timing is everything, but with a big deposit and not settling until 6-9 months down the line, you might be ok.
Ask for a settlement quote now to see how far away it is from where you want to be?
It shouldn't be too far away though.
To the OP, you can exit a PCP anytime you like, you're just selling the car and settling the finance same as a 'normal' HP agreement.
If the offer for your car is less than the settlement figure, then as somebody else has said you may have to add some money to clear it.
Timing is everything, but with a big deposit and not settling until 6-9 months down the line, you might be ok.
Ask for a settlement quote now to see how far away it is from where you want to be?
With a PCP, isn't the GFMV always the same no matter how big a deposit you put down?
You put a large deposit down which reduces monthly payments. You're still going to reach half the money paid at the very same time.
Isn't the GFMV always pretty near 50% after 3 years with the M135i, meaning you're going to be very close to 36 months to have paid 50% in a 36 month agreement?
The OP could always sell the car and settle the finance.
You put a large deposit down which reduces monthly payments. You're still going to reach half the money paid at the very same time.
Isn't the GFMV always pretty near 50% after 3 years with the M135i, meaning you're going to be very close to 36 months to have paid 50% in a 36 month agreement?
The OP could always sell the car and settle the finance.
If you're voluntary terminating, the process is that you writ to the finance company telling them that you have paid 50% of the money due under the agreement (that includes the GMFV) and you wish to voluntary terminate your agreement as entitled by consumer law.MI35i said:
That total due under the agreement figure will be clearly stated on your finance paperwork.
The finance company won't like it, and they'll probably write stating it needs to be in reasonable condition and that excess mileage charges may apply (they don't), but stick to your guns and it will be done.
Car goes back, no money is due to you or them.
It's always worth getting a settlement figure and see if your car is actually worth more to sell or trade, but that's unusual in a PCP as the finance companies are good at setting GMFV figures.
The GMFV is always the same yes, but the amount you borrow is dependent on the deposit obviously.Kerr said:
So, £30k car, £12k GMFV, £1k deposit = £29k borrowed (+interest & fees)
£30k car, £12k GMFV, £10k deposit = £20k borrowed.
Although the 50% due under the agreement point is the same, you'd probably be much better privately selling or trading the car and settling the finance if the second example applies, rather than voluntary terminating, if terminating at the same point in both examples, as there would more likely be some equity in example two.
Voluntary terminations generally cost the finance company money, which is why they don't like it, but it's tough as that's the legal framework they have to work in.
They may not re-finance you of course, but it shouldn't adversely affect your credit history.
I think the point was that regardless of deposit, the point where a 4 year PCP is at the 50% paid of the amount due under the agreement (finance+balloon) is typically 32-38 months.
Equity in the car, which is what you're talking about I think, is a different matter and with a big deposit your car is likely to worth more than the PCP settlement figure much earlier in any agreement.
Equity in the car, which is what you're talking about I think, is a different matter and with a big deposit your car is likely to worth more than the PCP settlement figure much earlier in any agreement.
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£11200CJ92 said:
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With that much down (I put similar down) your cars value should be well over the finance amount. Maybe get a settlement figure and WBAC value and see if you can just pay it off? Essentially buying the car, but selling immediately?
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