My question, do I not understand what voluntary termination is, my contract says I have to pay about 13,000 dollars before I do it, but I just want to make sure it`s different to use the garage and exchange my car for a cheaper car, or go to another garage and buy a cheaper car because the new dealer would pay the mb financing, wouldn`t it be a voluntary termination? I wouldn`t mind demanding a little clarity on the PCP deal I have for my Mazda 2 (from a Mazda dealership). I`m 30 months into a 42-month PCP, paying 140 p/month, with a 3k GFMV, and the car was worth .9.5k. I paid a down payment of $3200 first. It is now very unlikely that you will ever be able to stop a PCP prematurely and be in a position where your car is worth more than you need. There will be exceptions, but as a general rule, you should always consider that you will be in a negative equity position. Good morning, Nik. If you have a high expectation of having to liquidate the financial agreement prematurely, then a PCP usually means negative equity that needs to be offset. Good morning, Harriet. Most financial companies do not allow you to transfer your negative equity from $660 to a new PCP. As a general rule, you must pay for it before you can launch a new agreement. It is usually bad financial practice to place existing debts on a new debt, as you pay twice interest on that money and create a more negative position on your equity on your next agreement. In principle, if you are partly in the same situation by your next PCP, you would be in a lower position than you are this time because you have negative equity on that agreement plus the negative equity you transferred from that agreement.
Hey, Brian. I`m sure they can come up with a deal, but it`s probably an expensive exit from the Audi, because you`ll probably have a significant amount of negative equity to determine before you worry about a new deal and another deposit. Hello Stuart, I recently took a car in June 2014 on PCP over 60 months. My circumstances have changed and I have to be demoted to a vehicle that has literally half the value of that car. I think I had about 2k negative equity about when I signed the agreement. Would I be able to change cars without too much trouble? I have logged into your excellent site several times over the years and generally after passing the age of reading the article and finding all the latest comments of my question remains. I hope I didn`t miss it. Thank you Stuart. Do you know when the 14-day period begins — the date I signed the financial contract or the day I pick up the car? Hey, Jason. I would be very careful if I had to take a 3 year contract on this model and try to sell after a year. The reason Land Rover is offering a 20% discount on Discovery is because it is at the end of its life and therefore needs to be replaced by a new model.
It is hit a massive devaluation early, and only close to its GMFV by the 3 year mark (and it is a very strong GMFV offer under the circumstances). If you sell after a year, you will almost certainly have a lot of negative equity to remove. You can terminate the contract voluntarily, but you must have paid 50% of the total amount to be paid — and you will be far from it after only 6 months, so you will need a large sum of money to reach the 50% point. You can sell the car to a dealer who will pay for your financing contract, but your car is going to be worth a lot less than your financing count, so you`ll have to find a lot of money again to clear that. Hello, very interesting. I have a question and I will try to explain it as best I can. At the end of the pcp agreement, say 2 years, the final value was set by the financial company at $7,000. At this point, you will take the vehicle back to the car dealership and the market value is, say, $8,500 for an identical car. Did the Financial Cmpy allow this difference as your deposit on another contract of 1500 euros? Or just leave it for the dealer? if you av