Hi I have a 12 month PCP deal due to expire in circa 4 months. I was always of the belief that at the end of such a deal one option open to me was to hand the vehicle back with no ties / penalties etc. (save for damage above normal wear & tear). I have opened by Close Brothers Agreement and its got the following When do the goods become mine? The agreement relating to the goods is a hire purchase agreement and you will only become the owner of the goods when you have paid all the amounts due to us under the agreement. If you wish to own the goods from the outset, this product may not be suitable for you. Until you have paid the total amount payable Close Brothers Motor Finance will be the legal owner and you cannot sell the goods. The agreement gives you a number of rights prior to the final payment falling due and these are set out in full within the terms and conditions of the agreement. These options are: 1) You may pay the final payment with the Option Fee and purchase the Goods from us at which point you will then become the owner of the Goods, until this time we will remain the legal owner of the Goods. 2) You may return the Goods to us for a minimum price of the Guaranteed Future Value (GFV). This value is shown on your agreement. The sale proceeds will be paid towards the amount due under the agreement. 3) You may part exchange your vehicle, at which point the dealer will value your vehicle. If it is worth more than the GFV then you can put the extra funds towards a new vehicle. If the vehicle is returned under option 2 and 3 above the vehicle should be returned in a roadworthy and good condition with no damage beyond fair wear and tear. The car in question is a 2016 VW Golf R - these are very popular lease deals and the market has been saturated with them so if I am reading the above correct (point 2) I may be liable for any shortfall if the vehicle sells below the GFV figure. Can they do this, is it legal or can I fight it (if indeed they pursue this route?) Thanks Shane

No, they arent selling the vehicle, they have placed a notional value on it should you wish to purchase it (and they wish to sell) or if you have paid more in the rental than the depreciation over that period you get a credit towards something else (no cash value) whist the rental agreement is in force. Once it ends you walk away.

I would bet they try and sell you the car in the last month of the rental term so decide if that is what you want..