Getting out of a PCP deal

DeclanA94

Hi there,

Hoping to get some advice I currently have a 4 year PCP deal on my Vauxhall insignia, I will be in the 3rd year of it in March 2020 but due to unforeseen circumstances I can now no longer afford the payments. Does anyone have any advice about how I can get out of the contract and what steps I need to take?

Thanks for any advice it’s appreciated

Declan

motorguy

DeclanA94 wrote: »

Hi there,

Hoping to get some advice I currently have a 4 year PCP deal on my Vauxhall insignia, I will be in the 3rd year of it in March 2020 but due to unforeseen circumstances I can now no longer afford the payments. Does anyone have any advice about how I can get out of the contract and what steps I need to take?

Thanks for any advice it’s appreciated

Declan

To clarify - because that is ambiguous - you will be in year three as of March 2020, so we're seven months away from you being in year 3, so i make that you're probably 18 months in currently?

Or are you saying you will have 3 years paid, March 2020.

foxy-stoat

If you do not have the money to continue to make the monthly payments then best voluntary terminate your agreement and return the car, at least you will save on the VED, Insurance and running costs. If you cannot afford to pay up to the 50% of the agreement total your credit file will be trashed for a while.

Best of luck.

neilmcl

Get a settlement figure and find out how much your car is currently worth. You may be able to sell it on but you'll likely still have to cover the inevitable negative equity.

motorguy

foxy-stoat wrote: »

If you do not have the money to continue to make the monthly payments then best voluntary terminate your agreement and return the car, at least you will save on the VED, Insurance and running costs. If you cannot afford to pay up to the 50% of the agreement total your credit file will be trashed for a while. The Finance company will pursue you through the courts for any shortfall, which will likely amount to thousands.

Best of luck.

Edited for Accuracy.

AdrianC

...and that's 50% of the entire deal. Including the balloon. Not just the monthlies.

motorguy

AdrianC wrote: »

...and that's 50% of the entire deal. Including the balloon. Not just the monthlies.

Indeed.

The O/P could be £5,000 or more in negative equity here - either relevant to value or the 50% marker.

JackeeBoy

Jesus, is that how much is cost to get out of a PCP deal? It sounds like a financial for the wealthy who want new cars. If you're not that financially well off, you'd be better off saving and buying cash if you can.

fatbelly

DeclanA94 wrote: »

I currently have a 4 year PCP deal on my Vauxhall insignia, I will be in the 3rd year of it in March 2020 but due to unforeseen circumstances I can now no longer afford the payments. Does anyone have any advice about how I can get out of the contract and what steps I need to take?

Voluntary termination

https://www.nationaldebtline.org/EW/sampleletters/Pages/Terminate-a-hire-purchase-agreement-%28sole-name%29.aspx

AdrianC

JackeeBoy wrote: »

Jesus, is that how much is cost to get out of a PCP deal?

No, it's how much it costs to buy yourself out of a four-year contract early.

motorguy

JackeeBoy wrote: »

Jesus, is that how much is cost to get out of a PCP deal? It sounds like a financial for the wealthy who want new cars. If you're not that financially well off, you'd be better off saving and buying cash if you can.

As Adrian has said - no, thats what it can take to end a four year financial commitment early.