Yet More Misleading Information In The Press On PCP

Friday, 13. June 2008

Staying on these two misleading articles they also point to the dangers of taking finance on cars and the problems faced by those who want to get out of their current large or gas guzzling cars and into smaller more efficient cars but are unable to because of the negative equity position with the settlement costs being far in excess of the resale value of the car on finance, ie. negative equity. The drivers are therefore left with cars that they don’t want to drive because they have no way out of the finance. Again this is a generalisation that simply isn’t true. It may be true of certain finance but if you took out an HP or PCP agreement that was within the Consumer Credit Act then after paying 50% of the total cost of the car you can simply hand back the car to the finance company. The HP company may say that the settlement of the finance is £10,000 and the car is only worth £7,000 but as long as you have paid the 50% then you can simply pass the £3,000 loss straight over to the finance company and get yourself into a car that you prefer to drive, it’s known as Voluntary Termination. For information on various types of finance including PCP’s and your legal rights you need to make sure you have a copy of my book ‘An Insider Guide To Car Finance’ or sign into my free training videos which touch on these issues mentioned above, click on www.videotrainingonthenet.com