Ending pcp agreement

[Exitearly]

Hi there long time lurker, I have a car on pcp with ALD automotive which was taken out last June. It's a 3 year deal but with no option to buy the car at the end so it must be handed back. I've read that you can hand the car back after paying 50% of the amount as i'll probably struggle to pay for it given a change in circumstances for the duration of the contract. Here's what is in the paperwork, has anyone been in a similar postion? Thanks

[duckson]

Is this a PCP or in fact a lease (PCH - Personal Contract Hire)?

[Exitearly]

I believe a PCP, but will double check later

[codenamecueball]

Exitearly said:

I believe a PCP, but will double check later

PCP would offer you a fixed price to purchase the car in the future. With PCP, you have a finance agreement against the entire car to buy it, only with the bulk of the cost at the end of the agreement to reduce the monthly payments, and the option to hand it back if you don't wish to purchase. With PCP, you have a right to VT once 50% of the *entire loan, including balloon payment* has been paid.

With PCH, you're renting a car for a fixed period. You have no right to VT and are obligated to make payments until the end unless you come to some other agreement, but it won't be cheap.

[duckson]

Indeed, all you can do is ask how much to terminate the contact early and see what they say.
I’ve handed cars back a few months early (on PCH) and not been charged for those months, this was also with ALD.

[Volvolover]

Clearly not a PCP

[Exitearly]

Thanks for the replies, it looks like it's a pch contract as the car is taxed for me. I'll ring them and see what they say but it's early days as only took it out in June last year.

[Wacky Racer]

With my Mazda PCH from Santander I wanted to end the 3 year deal four months early so they charged me two months which I thought was fair.

[anonymous-user]

duckson said:

Indeed, all you can do is ask how much to terminate the contact early and see what they say.
I’ve handed cars back a few months early (on PCH) and not been charged for those months, this was also with ALD.

I handed my wife’s car back early to ALD with no charge as the used price at the time was more than they had anticipated so they were happy to have it back.

When it was collected (last summer - 4 months early) the driver was taking it a mile away to an Arnold Clark branch who had already bought the car.

Different story with my previous Audis (VWFS) as they wanted 55% of the remaining payments.

ALD seem to be one of the good guys in that respect.

[rich146]

The last letter in PCP stands for purchase !

[Exitearly]

Thanks for the replies folks

[Audimercorbm]

What car and terms is it... you might get someone to take the lease over on here. If it is allowed by ald

[anonymous-user]

As others have said, this is a lease not a PCP. To return the car you would need to pay 50% of the outstanding monthly payments which does not sound viable.

I think you may be stuck with it I am afraid.

[duckson]

Exitearly said:

Thanks for the replies folks

Let us know how you get on OP, good luck.

[Exitearly]

Hi Folks just to update this as it could help others, wrote them an email saying about terminating the contract early, said I wasn't really using the car and realized that car prices were high at the moment etc. The upshot is I can hand the car back with no penalty and just another payment to make at the end of the month. I thought they might have asked for some sort of early penalty fee but not free. If anyone is in the same position it might be worth contacting your lease company if you wanted to end an agreement early.