Getting Out Of Pcp

Jhncf

I currently have a car on PCP which us costing me £286 a month. I have recently changed job (around 3 months ago) and I now work away from home and have a work van so the car doesn't move Monday-Friday and does around 10 miles at the weekend. I'm basically paying alot of money for a car which doesn't get used. The car is costing £3432 a year to sit in my driveway. I can get around £10,500 from a dealer for my car and the settlement figure is £13500.. would I be crazy to pay the 3k difference to get out of the finance? It's throwing 3k away just to get out of the finance but otherwise I'd be paying £3432 for an unused car, so basically throwing the money away anyway. The plan would be to buy a used car afterwards and never finance a car again..

jonesMUFCforever

Are you allowed to use the work van for personal driving?

Jhncf

Unfortunately not.

jonesMUFCforever

So what will you use at the weekend.
You could work out what figure is 50% of the total cost of the PCP to hand the car back.

National_Debtline

Hi Jhncf


As you don't own a car on PCP until you have paid the full balance of the agreement, you would need written permission from the lender to sell it. Another option is to terminate the agreement and hand the car back.


You'll be held liable for 50% of the original agreement minus the payments already made. On top of that you'll need to check the terms and conditions of the agreement, there's usually a mileage limit and if you have exceeded that it could cost you more. Take photos of the car before returning it as you can be held liable for any damage above normal wear & tear. Hope that helps.


Susie
@natdebtline

monkeyk

Unfortunately not.