Don't need PCP car anymore as have company car now ???

KateO78

I have used PCP finance for the past 6 years, and it has worked really well for me. I currently have a Fiat 500, which is on a new agreement that I took out in Feb 2015.

However this year I changed jobs, and this new job provides a company car ( wasn't something I envisaged when I took out my new PCP agreement in Feb)

I am in the position now where I don't need my Fiat, but I don't know what is best to do. Can I terminate my PCP and give the car back, and what will be the financial penalties, will these be better than paying monthly for a car I'm not using ?

I'm not sure what will be best to do here, I will be paying benefit in kind tax for the company car.

Has anyone had something similar crop up ?

mcjordi

best off contacting the finance company and asking them, but iirc to hand it back without penalties you have to pay or paid 50% of the total agreement including the final payment.....
as you havent reached the 50% stage there will be penalties.. unless you can sell to another dealer/person for the finance settlement figure..

Tiddlywinks

Well, you could start by reading the PCP contract you signed - that will give you a hint about how to proceed.

bigadaj

There will b penalties or you can look to sell the car and pay the balance off which will result in some loss. Either option is likely to be cheaper than retaining the car if you are not using it.

Can you opt for a cash allowance rather than a company car and continue to use until your pcp agreement is up, this would probably be the best option even if you do end up with some mileage penalties for example?

KateO78

I can't have a cash allowance alternative, and tbh I will need the bigger boot space of the company car for business.
I hadn't anticipated a job with a company car when I took out the new PCP agreement. I am expecting I'll have penalties but I guess its working out if they outweigh the paying for a car I no longer use.

peter12345678910

You may lose you deposit, how much was that?

dannyrst

KateO78 wrote: »

I can't have a cash allowance alternative, and tbh I will need the bigger boot space of the company car for business.
I hadn't anticipated a job with a company car when I took out the new PCP agreement. I am expecting I'll have penalties but I guess its working out if they outweigh the paying for a car I no longer use.

Ring the finance company and ask them how much you would pay to get to 50% of the finance where you can VT or how much it is to return the car and clear outstanding fees/payments etc.

Go with whichever of those options is cheaper.

Do you still pay insurance/tax on the Fiat 500? Factor that in too.

dannyrst

peter12345678910 wrote: »

You may lose you deposit, how much was that?

A deposit on a PCP deal isn't something you get back anyway.