PCP - Early hand-back options...

[fatmcgav]

Afternoon all,

I've currently got a DS3 on Elect 3, due to Jan 2016.

I've just placed an order for a new Mini Cooper SD, due for delivery 1st week Sept, so need to work out what my options are with regards to handing the car back early.
Currently, according to a couple of Citroen dealers, I'm in about £1000 negative equity, due to being over-mileage... That'll teach me to agree with a dealer about reducing contracted mileage to reduce payments...

Contracted mileage is 10k PA, and I've currently done 38k, so will probably be 10k over by Sept when I come to hand the car back.
So assuming 8 pence per mile, that's £800 right there... Is there also likely to be a charge for terminating the finance agreement early?

Condition wise, I've got one little dent in the boot which can easily get pulled out by DentMagic et al, and a couple of slightly kerbed alloys which I guess it'll be in my interest to get fixed before handing the car back?

I guess there's also the back pocket card of VT'ing the car, as I've now paid over 50% of the balance... However would prefer not to do that unless I have to...

So yeh, just after some advice from anyone else who's done similar, etc...

Cheers in advance.

Gav

[Bigfeet]

Can I ask why MINI isn't just sorting this out for you anyway?

[fatmcgav]

Can I ask why MINI isn't just sorting this out for you anyway?

I did look at getting Mini to sort it, but it meant that all of my deposit was swallowed by the negative equity, and that pushed the monthly payments too high for my budget

Gav

[Old Bloke]

As you are such a long way into the agreement the settlement figure should be - but not exactly - the guaranteed future value plus the number of outstanding payments (5 payments remaining as of September 1) plus the mileage excess plus refurb costs. So that will give you an idea of costs. However Citroen finance may reduce that figure by using the dark art of calculating early settlement figures. The old chestnut about VT, yes it can be done and no despite whatever finance companies say there is no way they can penalise you for this. Categorically, not. However this does not stop them from trying as it was a regulation not designed for convenience, but to avoid further hardship to consumers in difficulty. VT is a dubious option, but it can be done.

[DigitalCal]

Can you keep us updated because I'm keen to see where you get to with this

[fatmcgav]

As you are such a long way into the agreement the settlement figure should be - but not exactly - the guaranteed future value plus the number of outstanding payments (5 payments remaining as of September 1) plus the mileage excess plus refurb costs. So that will give you an idea of costs. However Citroen finance may reduce that figure by using the dark art of calculating early settlement figures. The old chestnut about VT, yes it can be done and no despite whatever finance companies say there is no way they can penalise you for this. Categorically, not. However this does not stop them from trying as it was a regulation not designed for convenience, but to avoid further hardship to consumers in difficulty. VT is a dubious option, but it can be done.

Cheers for the response... That could be a large bill...

Looks like will have to give them a ring and see what they say...

Cheers
Gav

[Bigfeet]

I would suggest your best option would be to plump for the hand back, yes you will be charged for the mileage but that should hopefully be a lesson learnt about setting the mileage option right You will need to sort the wheels as this is one of the major pick up points of returning the car back.

In regards to VT yes this is an option and yes under current law the finance would be unable to charge for certain things, but bear in mind that the finance company has a legal team so when they send out letters about excessive use they are within their rights. The other thing about VT is that your credit file will be marked as do, this shouldn't effect your rating but could make other lenders a little more wary about offering you credit in future.

[fatmcgav]

I would suggest your best option would be to plump for the hand back, yes you will be charged for the mileage but that should hopefully be a lesson learnt about setting the mileage option right You will need to sort the wheels as this is one of the major pick up points of returning the car back.

In regards to VT yes this is an option and yes under current law the finance would be unable to charge for certain things, but bear in mind that the finance company has a legal team so when they send out letters about excessive use they are within their rights. The other thing about VT is that your credit file will be marked as do, this shouldn't effect your rating but could make other lenders a little more wary about offering you credit in future.

Cheers again for the reply.

Will give CFS a ring and go from there

Gav

[fatmcgav]

OK, so just got off the phone with CFS, and their response was that as I am handing the car back early, then it will be classed as a VT.

Did mention about mileage and overall condition, but didn't go into any further detail...
They're going to send me through a Statement to confirm if I've reached the 50% mark, and go from there...

Time-frames wise, if I use CFS paperwork, then the car needs to be available for collection the day after I return the paperwork...

Will see what the paperwork says when they send this first copy through...

Gav