PCP early trade in

[brettblade]

BTW the other thing our OP could do is voluntary termination... you could drop out after 50% of the money is paid... go google it.

Of course that leaves you with nothing, but if the end of the 4 years you've got nothing and you want to change now, just blow it as soon as you can.

The 50% paid figure includes the GMFV though, so if you're in a position to VT on a PCP then it's typically because you either put in a large deposit or are pretty much at the end of your agreement anyway.

E.g. £30k car, GMFV £15k, £5k deposit, £10k across a PCP.  The 50% figure is when £15k (ignoring any interest for simplicity) is paid, so that would be at the end of the agreement anyway.

[fredgroves]

yes its 50% of the total amount payable - which in your example is 50% of £30k.

Obviously with interest included, but the total amount payable will be on the finance agreement and when you have paid 50% of that, including your deposit, that is it, you can VT.

So, 5k deposit on a 30k car, 25k payable (including the optional 10k final balloon payment), when you've paid 12.5k you are free to jog on, which won't be at 50% of the duration of the agreement, but probably is at two thirds or thereabouts.

Usually most who play this, bail at 2 years of a 3 year agreement.

Depending on how confident you feel, many exploit this by having super low PCP contracted mileage, do loads of miles then VT. Whilst everyone assures you that its legal and no come backs, that does feel a bit dishonest to me...

Obviously you need to work your own figures as whilst VWFS interest rates are standardized, the GFV figure seems to fluctuate all over the place. Depending on those actual figures, you might find its possible.

Remember though, you literally walk away with nothing. Zero.

Only worth doing if you are desperate to not pay for a car (ie lost your job or changed job to where you don't need a car), desperately need a different car (ooops baby) or are some sort of chancer or need a shiny new Golf

[brettblade]

yes its 50% of the total amount payable - which in your example is 50% of £30k.

Obviously with interest included, but the total amount payable will be on the finance agreement and when you have paid 50% of that, including your deposit, that is it, you can VT.

So, 5k deposit on a 30k car, 25k payable (including the optional 10k final balloon payment), when you've paid 12.5k you are free to jog on, which won't be at 50% of the duration of the agreement, but probably is at two thirds or thereabouts.

Usually most who play this, bail at 2 years of a 3 year agreement.

Depending on how confident you feel, many exploit this by having super low PCP contracted mileage, do loads of miles then VT. Whilst everyone assures you that its legal and no come backs, that does feel a bit dishonest to me...

Obviously you need to work your own figures as whilst VWFS interest rates are standardized, the GFV figure seems to fluctuate all over the place. Depending on those actual figures, you might find its possible.

Remember though, you literally walk away with nothing. Zero.

Only worth doing if you are desperate to not pay for a car (ie lost your job or changed job to where you don't need a car), desperately need a different car (ooops baby) or are some sort of chancer or need a shiny new Golf

Just double checked and deposit is excluded from TAP, but the GMFV isn't.

In your example, at an interest rate of 5% and with the £10k final payment, the 50% mark would be after 32 of 48 months or 26 of 36 months (or 25 + a bit if you're only paying the actual difference to 50% rather than the next month's payment).  GMFV is likely to be higher than £10k, especially on a 3 year term so the number of months to reach 50% of TAP will be higher.  With a £15k GMFV in the same example, it's 34 months to reach 50% over a 3 year term.

Long story short, VT can make sense on a HP agreement, it very rarely makes sense on a PCP agreement unless you literally cannot afford the monthly payments for the final few months.

[fredgroves]

GFV is such a variable though - VWFS have famously over and undered it over time. Sometimes too high, other times not so much.

You need to check your particular figures to see if it works out for you personally.

[fredgroves]

I worked mine out, I could exit after 33 months of a 36 month term

3 months is a long time when its a shiny new car waiting... and if you chuck in the excess mileage avoidance...

And more importantly, thats 3 monthly payments saved (over a grand for me) if there is zero equity looking likely - saving over a grand for the deposit on the next one, assuming that you can make do without a car for three months.

(and with three months to go, I'd already be scoping out my next Golf order anyway)

So yes, it can work out for the better, just if you assume there is zero comeback on a VT.

[Scotty-LA]

Evening,

I have been following this thread with some interest.

I currently have an Audi A3 and I am in the process of looking to VT in order to get out of my PCP deal.
My motives are, my wife's opinion of my A3, the interest rate on my Audi is quite high in comparison to other PCP deals and finally i regret letting my VW go.

I called VWFS and explained to them and they gave me a figure of how much I could have to pay to clear the outstanding balance. They said the whole process takes about 4 weeks, from first call to the transporter arriving to collect the car.

[fredgroves]

Yes of course you can terminate before fifty percent providing that you pay the fifty percent... Not sure I'd be so desperate as that though just because you don't like the car... But each to their own

[vw spur]

I'm nowhere near 50% & VT'ing is something I knew about & was something I'd consider, if I do end up doing that I will be heading back to a BMW for sure, if I had any equity I was going to put it toward the deposit on a Touraeg, think I'll just hold on another 12 months then VT & get a 340i Touring, I've already had a chat with a BMW dealer I previously used to buy a car & given them the details of what I'm looking for, so if the exact car I'm looking for comes up I might just bite the bullet & pay what's needed to VT the GTD

Still waiting for a call from the dealer I used to get the GTD, was supposed to call at 10am Tuesday morning.