Early Termination of PCP - Moving Abroad

lukecrampton_

Hi, 
I have looked at other various threads on this topic but nothing that related to my situation directly, I'm just looking for some advise on what my best options are around early termination before speaking with my finance company.
I have had my car for 15 months now but I have my car on a 48 month PCP plan with Barclays. Due to family reasons I am  moving to Australia at the start of next year (travel restrictions permitting) and since this came into light at the start of the year I have had to think about my car options as I have only had this since Feb '19. However, due to the current Covid circumstances I am now not sure on how to handle this situation. I am just been placed on furlough and I am not sure where I will be financially. I know I have the option of a 3 month payment holiday but with me having to move next year in any event is it worth trying to just settle now and tell the finance company to work out options or do I take the payment holiday and wait until its closer to the time.

I have not passed the 50% mark required to just cancel this so I could just use some advise on this.

Regards,

DrEskimo

Get a settlement figure on what it would cost to settle the finance in full today, then start gauging how much you could trade or sell the car for in the current market.

Any shortfall between its current value and the finance settlement will need to be cleared from your own pocket. Given current market conditions, it's unlikely you will get the best price for the car....

Alternatively you look at the VT figure (stated in your finance documents) and calculate how much you have paid so far (deposit + any monthly payments). If the difference between those two is smaller, then that would be another option. But it seems daft to pay to get to the VT point and hand it back now, when you could just keep the car and wait till you are closer to actually needing to hand it back. You would pay the same either way.

If you are not moving till next year j would just hang on and see what the situation is like next year. If you have to sell it due to a reduction in income, then it's forcing your hand to the cheaper of those two options listed above. 

Hope that helps.