Help with PCP Agreement?

MBX19

Hi All,

Basically I’m looking for some help/advice with my PCP agreement I took out on November last year.

I agreed to a four year lease of Hyundai Tucson and I’m struggling to re-pay the payments, I’m making them but just due to a change in circumstance.

Originally I only got the car as they told me it would i not cost about £60 to fill up, more like £90 every two weeks. Feels like I’ve been a bit conned into it.

I really need to downsize and I got a quote from them to go into a smaller i30 although it’s two years older than my car and £60 a month more due to the negative equity.

Is there anyway or anything I can do to get out of my agreement without affecting my credit rating?

BoGoF

Apart from getting a loan to pay off the full amount then no. A loan over a longer period may work out cheaper.

alan_d

MBX19 wrote: »

Originally I only got the car as they told me it would i not cost about £60 to fill up, more like £90 every two weeks. Feels like I’ve been a bit conned into it.

This seems strange. The MPG figures are freely available as are 'real world' figures in reviews and owners forums.
It's pretty obvious that a large SUV will be fairly thirsty. This sounds like poor research on your part.

Unless you can find a serious defect with the car that you may be able to challenge, I suspect you're stuck with the finance deal that you signed to agree to.

BoGoF

Your only other option would be a Voluntary Termination but you would need to have paid 50% of the amount financed to do this. I think you are stuck with it until the 50% point. Can only suggest you drive more economically. What mpg are you getting?

motorguy

MBX19 wrote: »

Hi All,

Basically I’m looking for some help/advice with my PCP agreement I took out on November last year.

I agreed to a four year lease of Hyundai Tucson and I’m struggling to re-pay the payments, I’m making them but just due to a change in circumstance.

Originally I only got the car as they told me it would i not cost about £60 to fill up, more like £90 every two weeks. Feels like I’ve been a bit conned into it.

I really need to downsize and I got a quote from them to go into a smaller i30 although it’s two years older than my car and £60 a month more due to the negative equity.

Is there anyway or anything I can do to get out of my agreement without affecting my credit rating?

As has been said, it would have been up to you to confirm the real world MPG for your needs, so there has been a failing on your part there. A salesman will quote you the official figures, which are only really useful for comparison against the official figures of another car.

You're probably going to have to look at keeping the car until you've paid / can pay 50% of the total transaction cost and VT it.

In the meantime i would be doing the following :-

• Ensuring i am getting the cheapest fuel
• Learn how to drive in a manner that it more economical
• Look at ways to use the car less often
• Look at car sharing for commuting
• See if theres cheaper ways to commute
• Look at my other other outgoings to see how i can reduce them.

foxy-stoat

How many miles do you get out of your £90 and how many miles do you normally drive a year?

We can make guesses as to how many miles you would get out of a i30 with your £90 - then you can see how much you could save against buying yourself out of the agreement - I would wager you would come out worse off.

You have already indicated that you would be £60 a month down by changing to the i30.

DrEskimo

It's perfectly feasible to sell/trade the car in now, just as you would had you bought it outright. The only question is what price can you reasonably get (trade in will vary substantially across different dealers/garages, etc.), and what the difference is between this and your finance settlement.

Then it's just a case of working out what you want to do with respect to replacing the car. It may be that a single dealer can do both, but usually that results in being hit with a poor trade valuation on your current car, or with an expensive list price on the replacement, so generally better to do separately.

parking_question_chap

MBX19 wrote: »

Hi All,

Basically I’m looking for some help/advice with my PCP agreement I took out on November last year.

I agreed to a four year lease of Hyundai Tucson and I’m struggling to re-pay the payments, I’m making them but just due to a change in circumstance.

Originally I only got the car as they told me it would i not cost about £60 to fill up, more like £90 every two weeks. Feels like I’ve been a bit conned into it.

I really need to downsize and I got a quote from them to go into a smaller i30 although it’s two years older than my car and £60 a month more due to the negative equity.

Is there anyway or anything I can do to get out of my agreement without affecting my credit rating?

You mean a 1.5 tonne SUV isnt economical? who wudda thunk it.

Mercdriver

The difference in mpg for the two vehicles won't recover £60 a month.

motorguy

DrEskimo wrote: »

It's perfectly feasible to sell/trade the car in now, just as you would had you bought it outright. The only question is what price can you reasonably get (trade in will vary substantially across different dealers/garages, etc.), and what the difference is between this and your finance settlement.

Then it's just a case of working out what you want to do with respect to replacing the car. It may be that a single dealer can do both, but usually that results in being hit with a poor trade valuation on your current car, or with an expensive list price on the replacement, so generally better to do separately.

It depends how you define "feasible".

I would say there could be a £5,000+ difference between owed and what the car is worth.

That would cover an awful lot of fuel...

DrEskimo

Yes quite.

My point is just because it's on a PCP doesn't mean you can't just sell it and replace it with another car, just as you would with a car bought without PCP. VT or completing the term are not the only options.

Whether this makes financial sense is the next obvious question! The answer is probably not...