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Advice needed on cancelling or changing car PCP

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Hi all, sorry to make my first post a request for help and nothing more constructive!!!

About 14 months ago I took out a 3 year PCP on a new car. Since then, circumstances have changed significantly - as they do. Then our requirements were one large comfortable car to do long and twice weekly motorway journeys. Now, what we need is two smaller cars to do daily shorter journeys.

We could keep the existing car and get a second smaller car; unfortunately it will have to be via some form of finance. And that would still mean that we would be "overpaying" in the form of keeping the existing vehicle.

What I would like to do would be to "swap" the existing car and PCP for two smaller cars and PCPs, with the total PCP payments being roughly the same as the existing one. Mathematically this is possible, since our current car is quite expensive!!!

So, will the finance house entertain such an idea, or is it going to get stupidly expensive and difficult?

If they won't "help", would I do better to cancel the PCP, return the car, and start again? (Incidentally, I can't find the original PCP documentation - we've just moved house and the paperwork is chaos at the moment!).

What are the likely options available to me? What "rights" (if any) do I have to cancel the PCP? Any likely pitfalls I'm going to encounter?

Obviously, the finance company will be best placed to answer specifc questions, but I would like to get some "independent" views before I speak to them.

Hope y'all have some views and ideas!!!

Thanks

Comments

  • nej
    nej Posts: 1,526 Forumite
    I had a car on PCH once (very similar) and there was an option to return the car with nothing else payable after a certain amount of time (or after a certain amount of payments, technically). It's probably more than 14 months though.

    If you have the option to buy the vehicle at the end of the PCP then you should be able to trade the car in, but you probably won't get enough to pay off the finance.

    Best bet I suppose is speak to them and explain what you want to do. They may let you do it, they may not. Only they can decide.
  • peterg1965
    peterg1965 Posts: 2,164 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    A PCP is just like a loan with a deferred portion. Simply ask the loan company for a settlement figure, hopefully if it is less than the cars value you ahve some equity in it which is good.

    If that is the case take it along to any car dealer who should allow you to trade down your car and they will settle the outstanding finance. It is all about the cars current value Vs the settlement figure. What car is it? how much deposit did you put on it?
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