PCP head scratcher
Discussion
Couple of weeks back I took out a new PCP on a 2 year old car (other buying methods are available, I have other cars all owned outright, for what this one is and what I use it for PCP works for me).
Deal is 3 years then the inevitable balloon or hand back etc.
After doing all the various bits of money moving about from selling the new car's predecessor etc I had a few £k more than I expected. So, decided to just chuck it at the PCP deal. You can't reduce the term with overpayments but can reduce the monthlies. So I did that.
On the portal for the lender it showed they'd received it and showed that it and the resulting amendment to the interest had been added (for want of a better term) to the account. Also confirmed what the reduced monthly payment would be from the next payment onwards. So far, so good.
However, it also now says that the agreement ends at the end of September next year (before I made the overpayment it was showing correctly as 3 years - i.e. 2029) and the number of remaining monthly payments is now 14 rather than 37.
Emailed the lender to ask "Huh?". Semi generic response saying that you can't reduce the term (yes I know!) and that a letter had been posted with all the breakdown of details. Therefore not actually relaly answering my question which in effect was "Is your system wrong?". Got the letter today and it just confirms the overpayment and the new monthly but says nothing about dates etc. As such I'm none the wiser. Have replied saying I still don't get why the term has been reduced and is it just wrong.
So, can anyone else explain what might be happening or have they just got it wrong?
Deal is 3 years then the inevitable balloon or hand back etc.
After doing all the various bits of money moving about from selling the new car's predecessor etc I had a few £k more than I expected. So, decided to just chuck it at the PCP deal. You can't reduce the term with overpayments but can reduce the monthlies. So I did that.
On the portal for the lender it showed they'd received it and showed that it and the resulting amendment to the interest had been added (for want of a better term) to the account. Also confirmed what the reduced monthly payment would be from the next payment onwards. So far, so good.
However, it also now says that the agreement ends at the end of September next year (before I made the overpayment it was showing correctly as 3 years - i.e. 2029) and the number of remaining monthly payments is now 14 rather than 37.
Emailed the lender to ask "Huh?". Semi generic response saying that you can't reduce the term (yes I know!) and that a letter had been posted with all the breakdown of details. Therefore not actually relaly answering my question which in effect was "Is your system wrong?". Got the letter today and it just confirms the overpayment and the new monthly but says nothing about dates etc. As such I'm none the wiser. Have replied saying I still don't get why the term has been reduced and is it just wrong.
So, can anyone else explain what might be happening or have they just got it wrong?
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