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It's a piece of piss if you don't mind having you trousers pulled down by a finance house.

Even if you are in negative equity to the tune of £3k plus, there are many deals out there where the manufacturer deposit contribution will clear your outstanding balance. However, the advertised monthly on your new car goes up as your deposit has gone down (cleared the balance on your trade in) and you are in an even worse position if you don't like the new car and want to shift it.

Selling the car privately will minimise your loss (assuming neg eq), but it will likely be a colossal twat on if you are getting the buyer to clear Audi finance and then pay you any balance.

A cheaper alternative would be to consider tyres, but that won't give you any more grunt, obviously...

Your best bet is to wait until a dealer needs to make their targets and see what they can do. And take an in stock car.

Have you had the tracking checked?

Bizarre. I can see why you want out.

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Have you taken it back to Audi for a proper check or is it just a poor design 'feature' that they don't mention in the car mags?

The 207 was on a PCP, she was swapping every 3 years and the pug dealer just ran down her deposit and it ended up £3k negative equity. Fine until we wanted to move from pug to Renault. Voluntary termination applies to both HP and PCP i believe.

Will terminating impact your credit rating?

No. My last Lexus was on a 36 month PCP which was coming to an end. I extended it for another 6 months while I was waiting for my next car and as that approached the end of its run I realised I was in for significant penalties for excess mileage and general wear and tear totaling nearly £1k. Speaking to Lexus Finance they said I could voluntarily terminate the agreement and walk away from these charges without penalty, so that's what I did.

You can VT a car which is on a PCP or HP when you have paid back half of the total amount payable, not half the value of the car, don't get the two confused.

And no it won't affect your credit rating, however a note can be made on your file if the finance company so choose, but they rarely do.

Yes it includes the GFV/MFV/balloon payment, whatever people term it.

I don't really get the benefits of VT myself unless you have eg not stuck to your mileage limits.

For example, looking down the 4 year amortisation schedule for my car, I don't hit the point where I have repaid 50% of the Total Amount Payable until the end of the third year. At which point, I'd be fairly surprised if the car had depreciated so much that it made sense to simply hand it back and walk away, rather than selling it privately for more than the remaining balance (which you are usually entitled to do - I asked BMW and they confirmed it was permitted) to pay and then repaying the finance provider their due and trousering any difference.

Because in my experience (BMW/MINI and Fiat), PCP contracts allow you to repay in full at any time you like – there is a small interest penalty but it's not a significant sum.

I am not sure where the avoidance of mileage limits and damage comes in - when we handed back Claire's Pug207 it came with a very efficient collection service which charged us about £500 for non fair wear n tear (She works in a super market so lots of dints) and excess mileage...it was all fair enough apart from they charged £40 for a substandard smart repair to a panel which we had done to get one of the worst dents out...it looked perfect to me apart from shinier than the rest of the car ! but we didn't argue

It worked well for us and I have pieced together what I think happened as it was pre 'us' and her details are annoyingly vague!. Claire put in a car worth about 4k into a PCP scheme with monthly payments of £250pcm about 7/8 years ago and every 2-3 years the dealer would call up with an offer of a new 206/207 for about the same monthly payment.....which she duly took. I guess Humph will have more insight and was a star at the time with advice. <how do I get a beer smiley>

I assume in order to do this the dealer was eating into the deposit and inflating the MFGV to get the cost down and had Claire stuck with Peugeot's it would all be fine (but she hated the weird 208 dash/steering combo) and they would have continued to juggle the value/monthly payment

When I got involved and we looked at a Captur the Renault sales guy called Pug Finance and the value of the 207 was in negative equity (about 3.5k below the loan amount).......so we waited for about 3 months until we had paid off half and handed it back....

I don't really like PCPs for this very reason ie after £4k deposit and many monthly payments there was nothing to show for it. That said the Captur deal with 12k miles was on a PCP and seemed good value ie £240 deposit £240pcm means it will have cost us about the same as the depreciation if we bought one (plus it included servicing, breakdown etc for the duration) but I still don't like the feeling we don't own anything!