Early Termination/voluntary Termination Of Pcp

[Jezzer]

Not related to Lexus finance but another manufacturer's finance, but I assume it's fairly general. What's the deal with early or voluntary termination on PCP? I'm 42 months through a 48 month PCP - can I hand the car back under early termination as I've paid way more than 50% of the outstanding finance?

[Teeonethousand]

I checked this with mine both on the contract and with Lexus finance. Check out your contract - the early terminaton is in every one regardless of finance co and you can hand it back and walk - regardless of mileage and regardless of mileage commitment on your contract. It does however have to be in acceptable condition.

I assume it is in negative equity?

One BMW dealer told me that the best way to get a car these days is to pay lowest deposit possible, commit to lowest mileage possible and walk at the halfway point. He did the numbers for me on a 3 series and it would have been after about 2.5 years. It is pretty much like renting. I am still not sure it is a good idea for the next car but I do know that loads of people are considering it with the depreciation we have had in the recent 18 months.

Personally i am still struggling with the idea of blowing 15k every two years just to have a brand new car - on the other hand - your only here once......as far as we know. Also - I keep looking at my car and thinking....that's a nice car!

what would you get next?

[stevet]

I did hand a car back which i got on HP (A pug 406 that lost 90% after 3 years, so only loosing 50% it was a no brainer). Not sure about PCP or Contract Hire though.

[simon k]

mine goes back in april its on a 3 year pcp i have reached the halfway point and im handing it back the the car has lost so much in value and im so happy i did the pcp thing.

when they collect they inspect the car i was told that stone chips and slight scratches less than 25mm are ok, damaged alloys dents ect will be charged for at lexus rates, so im getting my alloys done before it goes back

[Scarlet Pimpernell]

I think right now, all those who took out PCH/PCP's are best off...wish I'd done the same!!!

[DJP]

I handed back my Merc CLK 320 at the end of the PCP and they tried to charge me over £800 for being outside "fair wear and tear". After a heated written debate they settled on £125. I would urge anyone handing back to take as many photos as necessary so you can defend yourself.

I will never consider a Merc again just for this reason.

Love the Lexus though!

[Bumflake]

Since as you only have six months left on the contract it's probably best to carry on paying until the end, then sell the car. Surely the car is worth more than six months worth of payments........unless the payments are sky high - or the car isn't worth anything!? Is it your 250? I'll give you six months worth of payments for it! This post is not a binding contract (just in case the car is a dog)! ;)

[stevet]

Since as you only have six months left on the contract it's probably best to carry on paying until the end, then sell the car. Surely the car is worth more than six months worth of payments........unless the payments are sky high - or the car isn't worth anything!? Is it your 250? I'll give you six months worth of payments for it! This post is not a binding contract (just in case the car is a dog)! ;)

But I bet the car is worth nowhere near the final payment.

[simon k]

Since as you only have six months left on the contract it's probably best to carry on paying until the end, then sell the car. Surely the car is worth more than six months worth of payments........unless the payments are sky high - or the car isn't worth anything!? Is it your 250? I'll give you six months worth of payments for it! This post is not a binding contract (just in case the car is a dog)! ;)

you got a deal on mine if you want it, its a 220d 56 plate 28,000 miles fsh its on a 3 year pcp due to expire in nov 09 i can hand it back now or buy it outright for 12k

trouble is its just over 2 years old and only worth 9k so if you fancy it 12k and its yours

[Bumflake]

errrm. Just bought a 56 plate 220d 20,000 miles for £10500 so I think I'll pass. Thanks for the offer though! ;)

I see your point though.