Can I return this car on PCP? (Voluntary Termination)

[co_sjo]

Hi all

 

I purchased a new car in April 2007 on a PCP deal. I paid a £2500 deposit and the total balance payable including credit charges was £30,387. The PCP agreement was £585/month for 36 months with a £9k final installment on month 37.

 

I'm now on month 25 - total paid so far is £15360 which is just over 50% of the total paid off.

 

From what I understand, with a PCP agreement, I am now entitled to simply return the vehicle back to the lender with no penalty to myself. However, I have looked through the T&C's of my contract and nowhere does it mention anything about my rights for Voluntary Termination - it only speaks about their rights of termination (if I dont pay etc).

 

The contract is titled "Hire Purchase Agreement" although the contract template is called "PCPNA", which leads me to believe it is a proper PCP contract. I was sold it as a PCP contract so I hope they've not stiffed me. It states the car belongs to them until paid in full.

 

Can anyone confirm? I'd like to a) know if this sounds like a proper PCP contract and if so, b) what are my rights, even if they're not written in the contract itself.

 

Thanks!

[postggj]

pcp

 

i take it thats personel contract purchess

 

this would be by conditional sale

 

on the agreement does it say under termination rights that they cant do a repo with out a court order if you have paid xyz

 

a vt would be if you have paid half the agreement and are no arrears.

 

 

hire purchess is my area but for agreements under the cca 1974, so not much help

 

depends whats written on the agreement ime afraid

[co_sjo]

postggj- it doesn't mention anything about 50% or a value for termination anywhere.

[postggj]

contract purchess is quite new so ime looking into the regs

 

give me a few days

[flyingdr]

HI There,

 

Not sure about the finer detail but might it be outside of the CCA Act due to the figure being over £ 25,000 - therefore an unregulated agreement? Not sure what the rules are on these. Although there is no right to cancel or VT.

 

I have a PCP that says it's a hire purchase agreement. Un-regulated as it's near £ 40k

 

Not sure of the precise rulings when they become conditional sale. Mine is an option to pay a final payment with a MGFV.

 

Look forward to seeing postggj's answer

 

I have just instructed a specialist Barrister in consumer law to look at my case.

[Nessywood]

There is something called rule of 78 which works on halves and thirds of a contract, I cant remember the full details and it may also just be related to a straight HP agreement which is different to a PCP, but worth checking out

[flyingdr]

There is something called rule of 78 which works on halves and thirds of a contract, I cant remember the full details and it may also just be related to a straight HP agreement which is different to a PCP, but worth checking out

 

This wouldn't apply to a an unregulated agreement. (it was for agreements under the CCA)

 

The Rule of 78 is a way of working out how much interest v capital is being repay on a fixed repayment. In the beginning most of your monthly repayment will consist of interest under rule of 78.