Car PCP - Voluntary Termination

[rogerfederer]

Yesterday I learned from a friend of the Voluntary Termination concept for a PCP car - this may help contractors here who don't wish such an expense.

You can hand back the car at any time using Voluntary Termination and pay 50% of total costs (including interest and any fees), which can often work out inexpensive compared to paying the remaining months or years if you would prefer not to have the car kept. The final balloon payment also puts people off. Do your own maths.

Voluntary termination of a PCP or HP | Car finance | The Car Expert

A guide to voluntary termination: Your rights - LegalBeagles Forum

This method is likely to save you thousands of pounds on a car that you don't want and doesn't affect your credit rating. There is no negative impact.

At this time it sounds like this will be useful to many on this forum, given the lack of roles available.

[Lance]

I've done this before.

I would treat with caution the suggestion that it won;t affect your credit rating though.
There will be a record of temination of the finance agreement, and whilst this will not usually impact credit card or mortage, to claim it won't impact your credit record is not wholly accurate. What I suspect to be closer to the truth is that anyone who can get a car lease has a sufficiently good credit rating that early termination won't impact it enough to make any difference.

[LondonManc]

It won't impact your credit score. It's very likely to affect your ability to secure a PCP later (not sure why you'd want to, when rental deals are generally far better). Take the lowest mileage option and save up the excess mileage cost as you use the vehicle.

[WTFH]

Yeah, I've done that a couple of times - more because I've got bored with the car.
One time it cost me < £10, another it was about 2 months of the PCP.