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Cancelling VW PCP
Posted: Thu Aug 04, 2011 2:03 pm
by cirkz
Does anybody know how is easy it is to cancel a PCP?!
I am almost 12 months in to a 3 year PCP on a new Scirocco!
I love the car, but no longer feel comfortable with how much it is costing me!
I have been thinking about canceling it for awhile, but was wandering if anyone knew what financial penalties VW might impose for doing so and how easy it is to carry out?!
Re: Cancelling VW PCP
Posted: Thu Aug 04, 2011 2:10 pm
by sciroccorocket
you simply ask for whats outstanding and then pay it off
Re: Cancelling VW PCP
Posted: Thu Aug 04, 2011 2:11 pm
by Cuprabob
Have a read of your contract agreement, it should state all penalties for early ceasation
I predict it will be painful to do so if you want to hand the car back
Re: Cancelling VW PCP
Posted: Thu Aug 04, 2011 2:16 pm
by Cuprabob
sciroccorocket wrote:you simply ask for whats outstanding and then pay it off
If he's uncomfortable with the monthly payments then it's unlikely he will have the funds to pay it off
Re: Cancelling VW PCP
Posted: Thu Aug 04, 2011 10:16 pm
by jonallen628
cirkz wrote:Does anybody know how is easy it is to cancel a PCP?!
I am almost 12 months in to a 3 year PCP on a new Scirocco!
I love the car, but no longer feel comfortable with how much it is costing me!
I have been thinking about canceling it for awhile, but was wandering if anyone knew what financial penalties VW might impose for doing so and how easy it is to carry out?!
You can hand the car back without any penalties once you have paid 50% or more of the total value. Look at your contract for the "total Payable figure" and divide this by 2. This is the amount you need to Pay back to simply hand the car back. On a 3 Yr PCP you will normall reach that point at the end of the second year. The hand back will be subject to the car condition being checked out, some items are classed as wear and tear but some things will be classed as damage. Items classed as damaged will have be repaired and paid for. Unfortunately in the first year your payments would have consisted of mainly interest and some equity as the interest is charged on the total amount still owed. Handing your car back before this point can be tricky, maybe easier to negotiate a swap to another model if this works for you or you could look at selling it privately. Hope this helps.