Paying off PCP early

ToonReiver

Hi all,

I know there are a few threads about this subject but I can't find the answer to my particular query.

I want to pay off my PCP early. This isn't for the normal reasons - needing to make savings, can't afford the repayments, etc. My deal says I cannot use my car for business use. When I took the deal out, this was fine. Now though, my job might be changing, requiring me to drive. There are still two years left to run on the PCP so I need to do something (I know, read the small print but here we are).

I've been given a settlement figure from the finance company and my bank have said getting a loan to pay for this won't be a problem. My question is, once you pay a settlement figure, do you then take ownership of the car or do you have to make the optional final payment for the vehicle on top of that?

I'm sorry if this sounds really naive but I've never had a car on PCP before and want to be clear about what the situation is before I start dealing with the finance company.dealer/bank in a practical, rather than theoretical, way.

Mercdriver

The settlement figure should include the balloon payment. Unless you are paying the balloon payment too, you aren't settling the finance.

daveyjp

Before jumping first find out what "business use" actually means. What is the actual wording in the agreement?

There is a difference between business use where you use a vehicle to undertake your job, such as site visits customer calls etc and the vehicle being an essential part of running a business such as taxi driver, driving instructor etc.

neilmcl

As above, the settlement figure is the amount to settle the finance completely inclusive of the optional final payment (balloon).