Car PCP

[silliwilli]

No it won't mean defaulting...but paying back half includes the balloon payment so you never really get to that point on a 4 year PCP until you're into your third year, at least in my experience.

 

[KevM]

^ an example and instance where a personal loans flexibility comes into touch Vs PCP..

The flexibility of a PCP you mean?
How would you Voluntary Terminate a Personal Loan exactly?

 

[Rocko]

Won't effect credit rating but afaik, it includes the cost of the final payment so it's closer to the 36 month mark before 50% is paid.

Edit: Just posted above.

 

[pizza85]

On a side note ,how can I get my daughter out of a 4 year pcp when she is 22 - 23 months into it .she needs a diesel car and would happily stay with another vw polo.was got through vw Boucher rd.
I did tell her not to go pcp but she knew best at the time .

If voluntary termination isn't close, if you can sell the car for around/more than the payment required to clear finance then do that. I done that with my Polo which was PCP - sold car, used funds to clear outstanding amount and was left with a bit in my pocket.

 

[Peadar]

On a side note ,how can I get my daughter out of a 4 year pcp when she is 22 - 23 months into it .she needs a diesel car and would happily stay with another vw polo.was got through vw Boucher rd.
I did tell her not to go pcp but she knew best at the time .

Get a settlement figure. Sell the car. Either yourself or the purchaser clear the finance agreement at the time of sale.

 

[NickR]

Will this mean she has defaulted on the loan so it will affect her credit rating .i don’t want that for sure.

No it wont. I done it years ago with blackhorse and had no impact on my credit rating. My next car HP was also with Blackhorse without issue.

 

[davyk31]

as above find out what she owes and that will let you know what her options are. Very much depends on how much deposit she put in, if the deposit was low she is likely to be in negative equity for a while yet. May be worth biting the bullet and sell the car, pay off the finance by adding whatever is needed to move in to the next car. Or get the figure and go talking to VW if she wants to change and they may be able to do something but take a good look at the figures to make sure it's still a good deal.

Nothing wrong with PCP for many people so long as the deal is good in the first place and the customer is well aware of what they are buying into.

 

[zafturbo]

Ok thanks guys ,I wasn’t aware she could sell the car when it was on a pcp .i thought it had to go back to a dealer to be changed to another one or when her time was up to settle outstanding balloon payment and keep the car .
I spoke to vw today and they have said to call up for a chat and they will see what they can do for her .

 

[davyk31]

Nope it’s all about the settlement figure. All the finance company want is money whether you sell the car and pay them off or trade In the car and the dealer clears the finance. Only issue can be selling privately a car with finance owing. This can easily be overcome by the buyer paying the finance company directly although if the car is in negative equity the buyer may not trust you to clear the remaining balance. In this case you would be best to pay to the finance company whatever is the amount above the sale price so then when a buyer pays them the sale price then the finance is all cleared.

All easily enough worked around
and plenty of options.