PCP help

anna_raven

Hi All,

I bought a car last September on PCP and its not turning out to be economical- I was wondering if anyone has had any dealings with returning a car on PCP that's under 1 yr and hasn't reached it's yearly mileage?

I'm aware I'll have to pay something- I just don't know how much? It was roughly £10.5k over 42 months with a final settlement of £5k.

Thanks for any help anyone can give me!

Brock_and_Roll

PCP is just a glorified HP contract, but with some termination rights built in. You cannot voluntarily return the car until you have made half of the total payments (including the final payment).

If you wish to terminate now, you will have to pay the currently settlement figure (probably near enough what you borrowed), you would take legal ownership of the car allowing you to sell it - and hopefully recoup some/all of the money.

You of course need to double check your contract for any other termination rights. Hopefully as you have done less than the allowed mileage this means that the car value should look relatively good compared with the outstanding balance - however what with the cost of petrol, recsssion etc gas guzzlers are taking a hiding in the 2nd hand market.

anna_raven

I thought that's what I might have to do. Means taking out another loan basically. Thank you very much for your help!