Getting out of a PCP deal

motorguy

fatbelly wrote: »

Voluntary termination

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

As i have pointed out, that does not solve the problem.

In the O/P's case they are likely to be well shy of the 50% marker so just chucking it back to the finance company will mean they will pursue you for the difference between what you have paid and what the 50% marker is.

motorguy

And i'm sure its not the case in the O/P's circumstances but phrases like "due to unforeseen circumstances" often translates to "the novelty of paying for my new car has worn off" or "i quite fancy a change"

foxy-stoat

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.

The figures are normally worked out that the half way point is a few months away from the end of the agreement.

And yes, even if you are financially well off I would still advise buying a car outright that you can afford than a car that you cannot.

PCP's work for some people though.

AdrianC

foxy-stoat wrote: »

The figures are normally worked out that the half way point is a few months away from the end of the agreement.

The figures are "worked out" based on expected depreciation.

If they fall just before the end of the agreement, then that's just because that's where the depreciation curve sits...

foxy-stoat

AdrianC wrote: »

The figures are "worked out" based on expected depreciation.

If they fall just before the end of the agreement, then that's just because that's where the depreciation curve sits...

Which is about right, new car will lose 50% of its value after 3 or 4 years, depending on the deposit and monthly payments.

iolanthe07

For some reason Vauxhall Insignias are among the fastest depreciating cars on the market, iirc. I don't know why. I hired one once and thought it was excellent; quiet, comfortable and with adequate performance. The OP might be better to stick with it if he can.

Penelopa.Pitstop

Because they are falling apart quickly. They are on the bottom of the reliability list. Go to Autotrader and look for newest car in banger price territory. You may find some spare or repair Insignias there.

So getting out of PCP early might be quite costly.

motorguy

iolanthe07 wrote: »

For some reason Vauxhall Insignias are among the fastest depreciating cars on the market, iirc. I don't know why. I hired one once and thought it was excellent; quiet, comfortable and with adequate performance. The OP might be better to stick with it if he can.

They usually attract big discounts therefore its not much of a surprise when they dont return a big amount come resale time.

Ironically they probably lose less money than say a 3 series, because they're so much cheaper to begin with.

I'd have no issues buying one - i've had them before and they've been great - certainly no worse than their counterparts and nigh on 1/2 the price of german metal.

motorguy

Penelopa.Pitstop wrote: »

Because they are falling apart quickly. They are on the bottom of the reliability list. Go to Autotrader and look for newest car in banger price territory. You may find some spare or repair Insignias there.

So getting out of PCP early might be quite costly.

The diesels in particular were prone to DMF and DPF issues and as the car gets cheaper the cost of repair can be a big percentage of the cars value so people get shot of them. Also some have been to the moon and back in terms of miles covered so the cheapest ones wont be worth repairing.

What annoys me about them is the fact that the standard petrol variant - the 1.8i - is so naff. There are other petrol variants but they are rare.

Kentish_Dave

It’s simple enough, you pay the difference between your payments to date and 50% and hand the car back.

What are the unforeseen circumstances and how short are you each month? If you post up a statement of affairs people can help with some advice.