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Get out of PCP early

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  • How long is your PCP deal for? Someone on another forum said that when you reach the half way point you can end it early without major penalties, but I don't have the details.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How long is your PCP deal for? Someone on another forum said that when you reach the half way point you can end it early without major penalties, but I don't have the details.

    No.

    Once you have paid 50% of the total transaction cost (including deposit, all monthly payments, fees and residual value) you can hand the car back with nothing further to pay (providing you have kept the vehicle maintained to an acceptable standard)
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    motorguy wrote: »
    No. They're not.

    Play it from a position of strength - imply "i've got a great car here at a great price - the added safety for you is you're paying the finance company direct and once you've paid them they'll confirm they have no further interest in the car, so you're not risking buying a car with some hidden loan".

    What if the OP decides not to pay the balance once the buyer has paid the asking price? Would he be able to get a refund of what he has paid?

    I don't care how good the car might be, if I'm expected to take the borrower on trust when I don't know him/her, I don't think that's a very good position to be in.
  • bearcat16
    bearcat16 Posts: 339 Forumite
    Fifth Anniversary 100 Posts
    Even if the OP managed to get a punter to agree to pay the finance company direct (I never would), the settlement figure is bound to be higher than the sale price. Probably by over £1k

    So what then? Will the OP pay the difference to the finance company? Or will he give it in cash to the buyer when he has paid the finance company?

    It's just way too much faff. I can't see anyone going for it when there are easier purchases to be made.

    The best idea is to get a personal loan, pay the finance settlement figure with it, then sell the car as normal. You can then pay off the loan with the sale proceeds, though you'll have to stump up the shortfall too.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mercdriver wrote: »

    What if the OP decides not to pay the balance once the buyer has paid the asking price? Would he be able to get a refund of what he has paid?

    How do you know the car is worth less than the O/P owes?

    If he doesnt, he simply pays first or at the same time. The finance company emails the buyer that they no longer have a financial interest in the car.

    This is done every day. Its not difficult or unusual.
    Mercdriver wrote: »

    I don't care how good the car might be, if I'm expected to take the borrower on trust when I don't know him/her, I don't think that's a very good position to be in.

    If you buy any car, you're having to trust the buyer?

    Buying a car that needs the finance cleared could be the least of your worries.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    bearcat16 wrote: »
    Even if the OP managed to get a punter to agree to pay the finance company direct (I never would), the settlement figure is bound to be higher than the sale price. Probably by over £1k

    So what then? Will the OP pay the difference to the finance company? Or will he give it in cash to the buyer when he has paid the finance company?

    It's just way too much faff. I can't see anyone going for it when there are easier purchases to be made.

    Either way.

    Good cars are harder to come by than you realise. The right car, the right price, all the paperwork in place and being sold from the sellers home? All sounds good to me - what does it matter who you're making the payment to?
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    motorguy wrote: »
    How do you know the car is worth less than the O/P owes?

    If he doesnt, he simply pays first or at the same time. The finance company emails the buyer that they no longer have a financial interest in the car.

    This is done every day. Its not difficult or unusual.



    If you buy any car, you're having to trust the buyer?

    Buying a car that needs the finance cleared could be the least of your worries.

    And in this circumstance you could find yourself risking fixing problems with the car and then finding you don't have proper title. That's what would be in my mind.

    Also from reading some posts on here, it can take til the last 6 months of a 36 month agreement to have got to the point where there is a point where it could be VT'd.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mercdriver wrote: »

    And in this circumstance you could find yourself risking fixing problems with the car and then finding you don't have proper title. That's what would be in my mind.

    You didnt read my posts then?

    The finance company gives you written confirmation once you've paid them for the car that they no longer have a financial interest in the car.
    Mercdriver wrote: »

    Also from reading some posts on here, it can take til the last 6 months of a 36 month agreement to have got to the point where there is a point where it could be VT'd.

    No.

    You can VT ANY TIME. You can VT the day after you finance the car.

    The 50% comes in to play because no matter when you VT the finance company can only pursue you for 50% of the total transaction value, THUS why having paid that amount is significant.

    That "tends" to happen around months 30-33 of a 36 month PCP deal, depending on deposit and monthly payments.
  • ive sold a car on pcp. the chap travelled from birmingham to bridgwater.

    i paid a very small amount to the finance company, less than a months premium, with a 8 month old deal. it was a smart car so they seemed to hold its value very well.
  • motorguy
    motorguy Posts: 22,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    rjwr wrote: »
    ive sold a car on pcp. the chap travelled from birmingham to bridgwater.

    i paid a very small amount to the finance company, less than a months premium, with a 8 month old deal. it was a smart car so they seemed to hold its value very well.

    :eek:

    You mean the guy DIDNT punch you in the face for wasting his time?

    You mean he saw the merit in the fact you'd all the paperwork at hand and were selling a decent car at a decent price?

    Outrageous!
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