PCP on a car

botty

Is it possible to get out of a PCP deal on a car early - I hear that after 18 months (or 50% of your payments have been made) you can simply hand the car back. I have an offer of another job but the company don't pay a car allowance as my current company do, it's a straight company car scheme. I'm 12 months into my PCP agreement with Lombard, I paid £1100 deposit and £370 per month since. I contacted them and they want just over £3,600 to hand the car back now. If I wait another 6 months can I simply hand it back?

xycom1

botty wrote: »

Is it possible to get out of a PCP deal on a car early - I hear that after 18 months (or 50% of your payments have been made) you can simply hand the car back. I have an offer of another job but the company don't pay a car allowance as my current company do, it's a straight company car scheme. I'm 12 months into my PCP agreement with Lombard, I paid £1100 deposit and £370 per month since. I contacted them and they want just over £3,600 to hand the car back now. If I wait another 6 months can I simply hand it back?

ISTR that Voluntary Termination is an option once 50% of the financed amount has been paid off. Therefore if this is a PCP that you are talking about, then you will need to also consider the balloon payment as well as the outstanding monthly payments.

At £370/month I'm guessing this is a car with an OTR of about £30-35K - if the residual balloon payment is around 50% or more of the OTR then I think you are going to struggle to get VT as an option until you are nearing the end of the PCP - e.g. months 30-36.

An option might be to try and find someone to take over the car and payments at less than the £3600 they have quoted you?