Can I transfer a car pcp?

AJC456

My financial situation has changed dramatically and I'm only 18 months into a 4 year pcp with vw. I now need to end this arrangement as I cannot continue with the monthly payments. If I hand car back I still need to find £5k which I cannot manage. I know someone who could take on the PCP. Is it possible to transfer the plan? 

DrEskimo

Not as far as I am aware no.

This £5k shortfall. Is this the difference between the cars valuation and the settlement figure? If so, who valued it?

Or is this the amount you need to pay to reach the VT point in your contract to be able to hand the car back?

AJC456

Hi it's the difference between car valuation and settlement figure. My local vw dealership provided me with the figures, along with vw finance. 

DrEskimo

AJC456 said:

Hi it's the difference between car valuation and settlement figure. My local vw dealership provided me with the figures, along with vw finance. 

So the first thing you can do is ring around other dealers and local garages and get a wide range of offers to buy the car from you. Obviously the current climate is going to make things more difficult, but there isn't just one true value. You will get a variety of offers with typically a wide range, so worth seeing if you can get a better valuation relative to your settlement to reduce that shortfall.

The alternative is to look at how much it is to VT, but that likely won't occur to around month 40, so you might as well just keep the car till then, then pay the difference now and hand it back.

Unfortunately, I think these are your only options. Do you need a car? You may have to trade it in at a loss (as above, try and minimise this by getting offers from lots of garages) and then take finance out for this shortfall. Hopefully this would be more affordable than the current agreement. 

If you do need another car then you have to factor in some money towards that too. Something much cheaper.

AJC456

I cannot afford to run any car anymore unfortunately. I need every penny so I can find somewhere to live. 

macman

As above. On a 48m PCP and only 18m in, the OP will be nowhere near the 50% point for VT.  Probably another 18m to go, depending on the size of the balloon payment.

MinuteNoodles

Hand the car back, default on the agreement, take the hit to your credit history if it comes to it. If you do have someone daft enough to take it over though it's worth phoning the finance company and seeing if they'd be willing to do it, pointing out that if they don't your only option is to hand the keys back and default.