Buying new car, best way to tax and insure while VTing existing car

Keezing

Hi All,

I currently own a car with PCP of which I have paid over 50% and I plan to voluntarily terminate it tomorrow.

I wanted to have my replacement car lined-up so have agreed to buy a second-hand car which I am due to pick up tomorrow.

Given that I will be responsible for my PCP car for at least another 14 days, I am struggling to get my head around the most cost effective way of taxing and insuring the new car.

- I assume I have to buy road tax before I drive the car home?

- Should I buy temporary car insurance for the new vehicle, and then transfer my main policy once the PCP car has been collected? Temporary car insurance is really expensive!

- I considered buying a full year policy on the new car, and simply getting a refund on the PCP car's insurance once it has been collected, but I understand I can't apply my no claims bonus to the new car while I still have access to the 1st car, so this is also really expensive!

- Could I buy 1 day's worth of insurance and then leave the new car uninsured on my driveway? If I do this, I would have to use my PCP car, but I understand it is not a good idea to drive the car after I have issued the voluntary termination letter.

Surely there has to be an easier way to manage this

Thanks a lot for any advice

vinny_vimto

I recently had same issue, I had to wait 12 days for VT'd car to be collected so I rang my insurer, what they did was transfer my policy to the new car and gave me 30 day temporary insurance on my existing car at the cost of £8 effective from date I collected new car.

I just taxed new car as normal online the morning I collected new car and it's fine to drive immediately. Then when the car you are terminating is collected by company you fill out and send the yellow bit of V5 to DVLA and gave the rest of V5 to collection agent . When DVLA receive the slip they cancel tax on old car and refund anything owing.

AdrianC

You will quite likely find your current insurer will allow you to add the second car to the same policy for a short period - up to 14 days is common - for either zero or minimal cost.