Need advice on ending PCP deal eight months in

Ditzy_Purple

Hi I took out a PCP deal on a car in January. I've just been offered a job overseas and looking at the agreement I would have to pay them £6k to leave the deal, which I don't have. I don't know what to do as I'm not going to miss out on the opportunity of a lifetime, but I'm also not going to give them 6 grand for a car I will have given back!

If just giving the keys back only affects my credit rating, then I guess I will have to accept it. It means that if I come back to the UK I will struggle getting credit. What I can't risk is them going for bankruptcy. My profession does not allow bankrupts. I would be completely screwed if that happened.

Has anyone ended their PCP before being half way through? The only posts I've found are for people who've paid 50% and they are able to give their cars back with no penalty. Is there a possibility the dealer might buy the car back. It's only just over a year old. It was a demonstrator car.
Any advice would be welcome. Thanks

Foxy-Stoat_3

Find out the settlement figure from the finance company, take out a loan, pay the finance off then sell the car.

You may end up winning or losing on the deal, probably losing as its a newish car.

National_Debtline

Hello there,

If the car finance is hire purchase (which is almost certainly the case), you can either hand the car back, allow it to be sold and pay any shortfall OR excercise your right to voluntarily terminate under s99 of the Consumer Credit Act - This is known as the 50% rule. Contrary to popular belief, you can exercise this right at anytime so long as you've not breached the agreement. It'll be worth doing your homework in relation to car valuations etc. to see which which method would be best for you.

Foxy-Stoat's suggestion is also a sound one. Some people can also seek permission from the finance firm to sell the vehicle themselves, you would probably need to evidence that the lender is happy for you to sell it as it'll be on the HPI register.

Whatever you decide to do, I hope you get it sorted OK.

Best wishes,

David @ National Debtline.

Ditzy_Purple

I've got the settlement figure and I will go to the local dealers and see what they offer. I don't have time really to get a loan and sell the car as I will be leaving in about 5 weeks and have nowhere to keep the car if it didn't sell before I went.
Just worried I will get offered silly prices from the dealers. I've checked online and other cars same spec, same colour are advertised for about £10k and my settlement figure is £9k.

Foxy-Stoat_3

Webuyanycarforlessthanitsworth maybe an option if its new and with no marks scuffs or dents, would give you an idea to start off.

I would go to a couple of dealers for a straight cash purchase but don't expect to get offered anything like what they would retail it for.

If your upfront about the finance then you could sell it privately, some folk get nervous about outstanding finance. The purchaser would settle the finance over the phone and pay you the difference (if any) in cash, so you may not need to take out a loan.

If you advertise it now for a realistic figure then you could sell it within the month, pitch it the cheaper end of similar cars to get the best chance.

BillJones

Ditzy_Purple wrote: »

Hi I took out a PCP deal on a car in January. I've just been offered a job overseas and looking at the agreement I would have to pay them £6k to leave the deal, which I don't have. I don't know what to do as I'm not going to miss out on the opportunity of a lifetime, but I'm also not going to give them 6 grand for a car I will have given back!

Why not? That's the deal to which you signed up, why do you suddenly think that it's not right that you honour it? You've had use of a brand new car, and are handing them back a used one, worth far less. How can you think that it is right that someone else bears the cost for this?

Ditzy_Purple

Thanks for the advice. So I give them the car back to allow them to sell it, it should at least get 6k which will cover the 50% VT that I am entitled to exercise? I guess it would be sent to auction and I didn't think those places were that much of a bargain.

Foxy-Stoat_3

Ditzy_Purple wrote: »

Thanks for the advice. So I give them the car back to allow them to sell it, it should at least get 6k which will cover the 50% VT that I am entitled to exercise? I guess it would be sent to auction and I didn't think those places were that much of a bargain.

It would but unfortunately you haven't paid for 50% of the contract yet.

They would either auction it or retail again.

Ditzy_Purple

BillJones wrote: »

Why not? That's the deal to which you signed up, why do you suddenly think that it's not right that you honour it? You've had use of a brand new car, and are handing them back a used one, worth far less. How can you think that it is right that someone else bears the cost for this?

Bill at the moment I am paying a sum each month for the use of the car. I don't want to pay £6k (which I don't have) to not have the use of the car. That was my point. And it wasn't brand new, it was 6 months old. I can understand though why you made that comment. I guess I didn't make it clear enough.

Herzlos

Find a dealer to sell it to, and have them put that towards the finance and take out a loan for difference. But speak to the finance company first.

National_Debtline

Foxy-Stoat wrote: »

It would but unfortunately you haven't paid for 50% of the contract yet.

They would either auction it or retail again.

It can still be VT'd. The OP would then be charged a lump sum equal to the 50% point less the payments already made. Most of these PCP agreements have a deposit equal to 3 month's payments at the start. That also goes towards the 50%. It may be a cheaper option than allowing the finance firm to auction it. It's really difficult to know without looking at specifics, mind you.

- David.