2/3 Years Completed On Pcp...wanting To Give Car Back.

[EmzIQ]

Hi all, I was wondering if anyone could shed some light on this...

I have spoken to numerous staff members at financial services and at the dealership where I bought my IQ and all have said I am free to give my car back at any time after I am halfway through the term without any charge.

However, the very rude assistant I have just spoken to on the phone insists I owe £1300 still. I can't make sense of this as I am 2/3rds through my contract, and everyone else has said I am fine to do it.

Can anyone say where I stand?

Thanks,

Emma.

[Parts-King]

You have signed a finance agreement for a 3 year period, you can walk away from it, but not without owing anything or penalty. This is an extract explaining PCP

Yes you can, but the important thing you need to remember is that the finance company does not guarantee the value of the car against your settlement until the conclusion of the agreement. For example, if you want or need to sell your car two years into a four-year agreement, you will have to pay any difference between what your car is worth and what you still owe (called negative equity). So if your car is worth £20,000 but your finance settlement figure is £22,000, then you will have to pay the extra £2,000 to clear your negative equity.

There is usually a charge to settle a PCP early, but it is not normally large. Some finance companies also allow you to pay in lump sums during the term, to either reduce your monthly payments or bring the end-date forward. Some allow it with no charge, some will charge you for it and some don’t allow it at all. Make sure you check before you sign up

The only people to tell you what you owe etc is the finance company, probably TFS, but the details will be on your agreement. Dig it out and call them, members on the forum will not know the exact circumstances, your finance company will

Kingo

[EmzIQ]

Hi Kingo,

Thanks for the reply & explanation. I just can't understand why 3 people have told me yes I can just give it back without charge (so much so that they were begging for me to stay on with any deal they could find for me) and this one person has said no...there's no continuity so it's really confusing.

Guess I am best speaking to the dealership now then?

Em.

[Parts-King]

I don't know your circumstances Emma, why do you want out of it? or do you want another car?

If you just want to walk away from the finance then the finance company are the ones to deal with

If you want to change it for another Toyota, then the dealership are the ones to speak to

It all depends on what you want???

[EmzIQ]

Long story short and after much deliberation as I absolutely love my IQ to bits, we are having a baby in a few months so will managing on one car whilst I am off on mat leave. Maybe when I return to work I will take out a future pcp or finance but for now it's the most logical option. The only reason I pursued it and we've thought about it, is because of everyone who has said yes I can do it haha. So frustrating

Em.

[Parts-King]

Well in that case (congratulations by the way ) you need to deal directly with the finance company, they will give you a settlement figure, it is up to you to pay that off. You could do this at the garage, but I have a feeling they will not be looking out for you in your best interests

See what the finance company say, get it in writing, they have to let you know legally anyway

Kingo

[Sensha]

When you started out there, I thought that this was about some drug problem (PCP). Once again, the difference between the Queen's English and our *****ized version come to the fore...

[FROSTYBALLS]

PCP - personal contract plan

[Parts-King]

Or Personal Contract Purchase

[Wiz201]

If the monthly payments aren't higher compared to giving the car back and paying off the cash lump sum settlement, maybe you could run the car for another year until the lease runs out anyway? You've got it this far, it doesn't seem worth giving it back. Plus if you turn the front passenger air bag off, you could still take your baby out in the IQ occasionally in a car seat?