Changing car on PCP?

chelseablue

A friend of mine was asking my advice but not sure of the answer

They purchased a car on PCP in April of this year, so 7 months in

Not a brand new one, was a year old when they got it

They would like to change it for an automatic (been having knee problems)

Basically is it possible to change the car?

foxy-stoat

Yes of course. She needs to call up her lender and get a settlement figure, pay it and then your friend can sell or part exchange it for a car they do want.

chelseablue

foxy-stoat wrote: »

Yes of course. She needs to call up her lender and get a settlement figure, pay it and then your friend can sell or part exchange it for a car they do want.

Thank you

Do they have to settle the finance first?

Could they not just go to the dealer they got the car from and change the car and sort the finance out there?

foxy-stoat

chelseablue wrote: »

Thank you

Do they have to settle the finance first?

Could they not just go to the dealer they got the car from and change the car and sort the finance out there?

The finance is secured on the car, I doubt the lender will transfer the car on the same agreement. The PCP will have to be settled and a new one taken out. Your friend will probably have to find a few thousand to bridge any gap in the finances as the price they paid will be a lot more than the value of a part exchange. Unless they want to down value the car to make up the difference.

chelseablue

They understand it would be a new agreement with a different vehicle

Say there was 2-3 thousand of negative equity, can they transfer that over to the new agreement?

BoGoF

The amount owing is going to be far more than the car is worth. Request a settlement fugure and they will see by how much. It may make them want to drive through the pain!

foxy-stoat

chelseablue wrote: »

They understand it would be a new agreement with a different vehicle

Say there was 2-3 thousand of negative equity, can they transfer that over to the new agreement?

Has been done before, but reading threads on here it usually ends in pain.

chelseablue

BoGoF wrote: »

The amount owing is going to be far more than the car is worth. Request a settlement fugure and they will see by how much. It may make them want to drive through the pain!

Thank you, they have a settlement figure; £13,265

foxy-stoat

chelseablue wrote: »

Thank you, they have a settlement figure; £13,265

Whats is the value that webuyanycar given?

chelseablue

webuyanycar say £10,000

foxy-stoat

So your friend will need to find £3000 or there abouts plus the deposit for the new PCP. It may be worth asking the supplying dealer what their part exchange would be on another car.

Then it will come down to passing the lender's affordability checks as their credit file will show the first PCP debt still owing, even though it will be settled when the new PCP deal starts.