Alfa Romeo Forum banner

1 - 8 of 8 Posts

·
Registered
Joined
·
328 Posts
Discussion Starter #1
I don't know if I have imagined it, but did I read somewhere that a PCP agreement with FGA can be terminated half way through, and you just hand the car back? Can anyone confirm or deny this?

Thanks!
 

·
Registered
Joined
·
3,255 Posts
Can't remember if its half way through the term ie after 2 years on a 4 year deal or half the original cost. Might be the latter if i remember right which would put it nearer 3 years on a 4 year deal.
 

·
Registered
Joined
·
417 Posts
I think it's ok if you have paid half of the original cost. I did it on a Fiat Bravo after an appalling crash repair. The car will need to be inspected for any damage. Oddly on mine they failed to pick up on the fact that the front of the car was a completely different colour to the back half, but noticed a half inch scratch on a wheel trim. I had to deliver the car to an auction house and that was it.
 

·
Registered
Joined
·
488 Posts
You can VT (voluntarily terminate) an agreement once you have paid half the total amount payable, not half way through the agreement or half the amount borrowed
 

·
Registered
Joined
·
328 Posts
Discussion Starter #5
Thanks all.

So andy is that half the invoice amount then? With your deposit counting towards it?
 

·
Registered
Joined
·
488 Posts
Thanks all.

So andy is that half the invoice amount then? With your deposit counting towards it?
Yes it is, total cost of car plus interest, if your deposit and payments to date are equal to or more than half of the total amount payable

It does not affect your credit rating but the lender will put a marker on your account showing that you have exercised your legal right to voluntarily terminate your agreement
 

·
Registered
Joined
·
328 Posts
Discussion Starter #7
Interesting stuff, thanks!

It will be over half way through the agreement if i've got this right, due to the optional final payment?

Basically it gives you an option to change earlier, or hang on and hope there is some equity in the car.
 

·
Registered
Joined
·
488 Posts
Interesting stuff, thanks!

It will be over half way through the agreement if i've got this right, due to the optional final payment?

Basically it gives you an option to change earlier, or hang on and hope there is some equity in the car.
Only a couple of instances when I would invoke the VT clause:

1. You know you will never have any equity on the car

2. You can't keep up with the payments

If the car is worth more than the amount o/s you should always sell it, pay off the balance and pocket the profit

With PCP its like this (if done properly)

If there is a profit its yours

If there is a loss its the finance companies
 
1 - 8 of 8 Posts
Top