Peugeot Finance Advice

Maistaff

Hello

I bought a car on Peugeot Finance two years ago and have never missed a payment.

However i am currently going through some major finance issues which i need to address and with paying just shy of £300 a month for the car it is really causing me some issues.

I have also lost my job (Friday just gone) which hasn't helped.

My question is if i call Peugeot and explain this all to them and simply say i can no longer afford the car and to come and collect what will then happen? I no longer can afford it so if it goes it will not be ogf any problem to me more of a relief.

Would there be any come back or problems i am likely to encounter by doing this ?

All help and suggestions welcome

Thank you in advance

Apples2

Is it a HP agreement?
How long was the term?

If it was HP, and you have paid at least 50% of the agreement you can VT (Voluntary Terminate) the contract and hand the car back.

It is unlikely they will offer you anything out of goodwill.

Maistaff

Apples2 wrote: »

Is it a HP agreement?
How long was the term?

If it was HP, and you have paid at least 50% of the agreement you can VT (Voluntary Terminate) the contract and hand the car back.

It is unlikely they will offer you anything out of goodwill.

The contract was for 5 years and i got the car Dec 2010 and yes it is HP as once the 5 years is up i would have the choice of paying a lump sum of cash and the car is mine or trading it in for another car

I really don't want anythi8ng from this only to walk away from it.

My concern is they would make me pay to do this and as i don't have the cash to do so this could be an issue

chalkie99

If you got it in December 2010 you are hardly 18 months into a 60 month contract so you need at least 12 x £300 = £3600 plus, probably half the lump sum to be able to return it.

Certainly call them and ask what your best course of action is but they are unlikely to have any good news for you.

Whatever you do don't just "tell them to collect it".

Your payments will rack up while you try and sort it out and your credit file will be shot to pieces.

Seems to be a growing problem at the moment where a number of people fancied a shiny motor without thinking through the consequences. You are stuck with a car which is not yours to sell and which is probably worth less already than you owe on it.

The least worst option might be to see if they have a dealer who will buy it back at whatever price to partially settle the finance and see if they can turn the balance into a new unsecured loan.

DCFC79

Oh and also dont just cancel the DD if 1 is set up.

DCFC79

chalkie99 wrote: »

Seems to be a growing problem at the moment where a number of people fancied a shiny motor without thinking through the consequences. You are stuck with a car which is not yours to sell and which is probably worth less already than you owe on it.

Yes this is the problem in this situation, its just not worth the hassle getting an expensive car on HP.

chanz4

sounds like peugeots pcp scheme, with you having to pay a balloon payment also

Maistaff

DCFC79 wrote: »

Yes this is the problem in this situation, its just not worth the hassle getting an expensive car on HP.

Everything was ok when i took the car on but unfortunatly i didn't know what the future held and well it hasn't gone as i would have liked it to

Getting a dealer to buythe car or even sell it second hand might be an option depending on which one offers me more money

martinthebandit

Er, I am no expert, but I don't think the car is yours to sell.

chalkie99

Maistaff wrote: »

sell it second hand might be an option

NOT an option.

It isn't yours to sell. That car belongs to the finance company until the finance is settled. If you try and sell it to some poor unsuspecting fool it will throw up a marker to the finance company as soon as they try to re-register it, landing you in plenty of trouble.

Credit_Crunched_2

Is the finance agreement with Peugeot financial services? It's possible it isn't, as Peugeot do not currently do a PCP for longer than 3 years.

Anyhow, if it is with PFS, and you were made redundant through no fault of your own, and had been in continuous employment for the prior 6 months, you could investigate activating the payment waiver clause on your agreement, whereby they will waive your payments for 6 months due to your involuntary redundancy. You will need to call them to discuss this, but it would give you some valuable breathing space.

If the car is not financed through PFS, then this may not be an option.