Well played Fiat Finance, Well played.

[Ransoman]

Those of us familiar with CPC finance deals will no doubt be aware that, half way through the repayments - AKA - once half the finance amount has been repayed, you can voluntarily terminate the agreement with no penalty to pay. You just hand the car back and the agreement comes to an end at no cost.

Well that was my plan. My Punto EVO has a 4 year agreement and the plan was to hand it back as early as I could. At first i thought this would be not long after the year 2 mark but when i got my statement I realised it would be nearer the 3 year mark. So i waited.

Now the 3 year mark is on me, I was planning on doing the MOT and handing it back a couple of weeks later. My 3rd year statment is in and... I can't voluntarily terminate with no penalty for another 2 months!

So, despite the rule that we can terminate early when half the amount financed has been repayed, the reality is that this doesn't come in untill well over the 3/4 mark.

I see what you did there Fiat Finance, well played.

 

[s130]

Well what did the original agreement paperwork you signed say? That should/will be the legally binding document and not any annual statement.

 

[Ransoman]

It said exactly what I said it said. Once half the finance value has been repaid the finance can be voluntarily terminated with no penalty and no money owed if the vehicle is returned.

Point of my post is that fiat structured the finance very well for them so that this early termination point doesn't happen untill way past the 75% of physical repayments.

If anyone is planning on buying a car with PCP and you intent to hand it back early then go for higher monthly payments and a smaller balloon payment.

 

[Stu DemonD]

I can't see that they have done anything wrong.

 

[Ransoman]

Jesus guys. They haven't done anything wrong! I was just pointing out how the finance "Curve" is structured to benefit them. Nothing wrong with that, they are a business after all.

The point of this post is point this out so that anyone who goes into finance with the intention of VT'ing early (as many do) should check the repayment curve to see when they can VT. I am not having a moan, just expressing a "Lesson learned".

 

[Most Easterly Pandas]

I can't see that they have done anything wrong.

:yeahthat:

You made the silly mistake of assuming it was 'half way through the finance term' ie 2 years into the 4 you could hand it back, however as you've confirmed its 'after half the financed sum has been repaid'. IE if you borrow 10k, with a balloon payment of £3.5k at the end you've £6.5k over 48 months, (£135.42 a month), you've paid half when you've paid month 37 (3yrs and 1month).

Only person that seems to be in the wrong here is you.

 

[s130]

Ok I understand.