Voluntary Termination - PCP

Discussion in 'General chat' started by Ibby, May 20, 2020 at 3:00 PM.

  1. Ibby
    Offline

    Ibby

    Joined:
    May 18, 2020
    Messages:
    13
    Likes Received:
    2
    Ratings:
    +2 / 0 / -0
    Hi folks. Has anyone ever voluntarily terminated a pcp agreement? Does it have a negative effect on your financial record?

    Have seen on martin lewis site that many people are doing this. I'm only a few hundred pounds away from reaching that point with BMW finance whereas the dealers are saying I'm £2.5k in negative equity on my G30 when initially trying to do a deal prior to lockdown for a G05. If I voluntarily terminated I would be £2.5k better off which I can put towards the G05.
     
    Last edited: May 20, 2020 at 3:51 PM
  2. mystic sport
    Offline

    mystic sport

    Joined:
    May 17, 2018
    Messages:
    119
    Likes Received:
    76
    Ratings:
    +93 / 0 / -0
    No negative impact to credit score as far as I am aware. Just ring up BMW FS, they confirm you are in a position to do so, they send the forms, you sign them and wait for a collection date or do as I did, leave it at the dealership when you pick up the new one and inform FS that this is where the car is and let the salesman who dealt with your new one hand over the keys and manuals to the collection bloke. All very easy.
     
    • Like Like x 1
  3. Ibby
    Offline

    Ibby

    Joined:
    May 18, 2020
    Messages:
    13
    Likes Received:
    2
    Ratings:
    +2 / 0 / -0

    Excellent mate thank you. What made me laugh is when the dealer quoted the £2.5 k negative equity and I showed her an email from BMW finance showing I only had 2 payments when I could terminate she looked shocked. I'm hoping I can just tell the dealer to sod the negative equity when I get to working out the deal for the G05.

    BTW did the finance company penalise you in any way? I have a minor scuff on one a couple of the alloys
     
  4. mystic sport
    Offline

    mystic sport

    Joined:
    May 17, 2018
    Messages:
    119
    Likes Received:
    76
    Ratings:
    +93 / 0 / -0
    No, I think that one scuff is accepted as fair wear and tear. It is painless, done it twice because of poor PX values and me wanting something different fast.
     
    • Like Like x 1
  5. The_Master
    Offline

    The_Master Site Supporter

    Joined:
    Aug 13, 2015
    Messages:
    151
    Likes Received:
    48
    Location:
    Norfolk
    Ratings:
    +78 / 0 / -0
    • Like Like x 1
  6. Wynne71
    Offline

    Wynne71 Site Supporter

    Joined:
    Apr 3, 2019
    Messages:
    778
    Likes Received:
    255
    Location:
    West Midlands
    Ratings:
    +366 / 0 / -1
    I handed back the F30 after only 6 months into a 4 year PCP. Lost a tonne of money, but as I put a decent deposit down they owed me some money when I handed the car back.
    No issues at all with credit score or future finance.
    The bloke who came round to value and do the paperwork told me a few horror stories of people having to write him a cheque for thousands just to take the car away.
     
  7. Ibby
    Offline

    Ibby

    Joined:
    May 18, 2020
    Messages:
    13
    Likes Received:
    2
    Ratings:
    +2 / 0 / -0
  8. aldo
    Offline

    aldo

    Joined:
    Dec 11, 2019
    Messages:
    52
    Likes Received:
    21
    Ratings:
    +29 / 0 / -0
    Ooh yes I forgot about this. Is it half the amount you owe in total including the total amount of interest?


    Sent from my iPad using Tapatalk Pro
     
  9. Spuffington
    Offline

    Spuffington Moderator WARLORD Site Supporter

    Joined:
    Jul 31, 2015
    Messages:
    1,609
    Likes Received:
    714
    Location:
    Frankfurt am Main, Germany
    Ratings:
    +879 / 0 / -1
    Yes. I just worked mine out and it comes in month 43 of 49 so really not a huge difference.
     
  10. aldo
    Offline

    aldo

    Joined:
    Dec 11, 2019
    Messages:
    52
    Likes Received:
    21
    Ratings:
    +29 / 0 / -0
    Yeah, checked mine last night but I’m only 6 months in to my agreement. Does reduce the term by about 9 months.


    Sent from my iPad using Tapatalk Pro
     
  11. Ibby
    Offline

    Ibby

    Joined:
    May 18, 2020
    Messages:
    13
    Likes Received:
    2
    Ratings:
    +2 / 0 / -0
    I'm into year 3 of 4 and it will reduce it by 12 months as a result
     

Share This Page