Car Loan (PCP) Query - HELP PLEASE!

danblan1976

Hello all,

I'm 19 months into a 36 month PCP credit agreement and need to get rid of this loan in order to get a mortgage with a decent rate. I pay £340 per month on this loan so it'll make a big difference applying for a mortgage without it.

I've checked the paperwork and can cancel the agreement and hand back the car without penalty but the thing is, my girlfriend wants to keep the car and take over the finance so I was wondering if there is anyway the credit agreement can be transferred??

Any ideas?

Thank you!

CLAPTON

She can take out a new loan for the full settlement figure and then you can pay off the full balance of the PCP and sign the car over to her.
She would probably be mad to do this but there you go

danblan1976

Thanks CLAPTON! Appreciate the response.

I take it from your response that you don't know whether or not I can just transfer the credit agreement as it is? I agree that the loan is a mad idea and I wouldn't let her do it.

Anyone else have any ideas please?

danblan1976

Sorry folks,

One other thing I forgot to mention is that I put a £3,000 deposit down on the car and don't really want to lose it. Another reason why I'm not keen to hand it back and terminate the agreement.

Thanks!

PNPSUKNET

you wont be able to transfer the contract, you would be able to ask for a settlement figure however. This will include the rest of the hire period and a large balloon payment

CLAPTON

No you wouldn't b able to transfer the loan... it will have to be a new loan

But if the cost of refinancaing the loan is madnss then why does continuing it make any sense?
the costs will be similar

danblan1976

Thanks for the advice everyone.

CLAPTON, you have a very good point. This is why I love these forums! I'll have a think about it but it looks like the only option she has is a loan.

Cheers all!