Getting out of/changing a PCP agreement early

calamata

A couple of months ago I got a new job and with it a monthly car allowance as part of my salary. I got a VW Touran as I needed the space for the family etc. However, for a number of reasons, I need to downgrade the car to something smaller and more economical as I can't afford the repayments on the Touran with some new financial responsibilites on the horizon and sadly won't need something of that size either.

Does anyone have any experience of changing their PCP agreement to allow them to change their vehicle and make lower payments?

Any comments would be appreciated

Hintza

It is possible to extract yourself from a PCP deal before it reaches its end, but it depends on the car purchased, and the exact details of your deal. The terms and conditions of the contract should be with the paperwork you signed when the package was agreed.

Any regulated loan agreement (your PCP deal should be included) is covered under the Consumer Credit Act, and allows you to hand the car back and walk away after your payments have equalled 50% of the total amount payable in the contract. Contact the finance company that organised your loan for the exact amount.

Alternatively, you may be able to settle the agreement by selling the car privately or to a dealer, and paying off the outstanding amount. If you are lucky, you might even be able to sell the car for more than the settlement figure, and make some money.

Contact the finance company for a settlement figure, and investigate the value of your car. You will get more money selling it privately, but this may take longer than going to a dealer. If you do want to sell the car, you should inform the finance company first, which may require you to settle the loan agreement before you transfer ownership.


(Please note this is blatant plagarism direct from the Whatcar site!!)

plane_boy2000

Did you put down a large deposit? If not as teh car is new it will have depreciated steeply in teh first 6 months so likely you owe a lot more than the value. If this is the case then no you cant really get out of it unless you can sell the car and come up with the extra cash to cover the shortfall.

botty

I'm in a similar boat. 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?