Break a PCP

motorguy

AdrianC wrote: »

Yes, absolutely.


"Straight" PCP - you walk in, "buy" a £15k car. You borrow £15k. If you cancel, you hand back £15k car, you no longer owe £15k.

PCP with £3k -ve equity - you walk in, "buy" a £15k car. You borrow £18k. If you cancel, you hand back £15k car, you no longer owe £15k. You still owe £3k.

If you cancel the finance agreement you still owe the seller £15K.

They're not obliged to simply take the car back and if they do they could quite rightly pursue you for all associated costs.

Nobbie1967

Simon_23259 wrote: »

You're right, I don't fully understand it which is why I'm looking for advice.

My first car was about 1k in negative equity which I was told was applied to the new car.

So if I take out a new PCP and this is then included in the monthly payments, are you saying that even if I settle from day two I will still have the negative equity to settle?

Sorry if that sounded snarky, clearly if you understood you wouldn't have been asking the question!!!128578;