PCP Deal

jkirby1965

In July 2019 I took a car PCP deal when work was good, due to the Coronavirus the company I work for has lost circa £20million revenue as a result have made people redundant. Unfortunately I am one of those people so I would like advise with regard to returning the car as I have no job and am unable to make the payments, and it is unlikely that I will get a job anytime soon due to the economic climate.
Regards 
John

DrEskimo

Get the settlement figure from the finance company. Then ring around local garages and dealerships and get some quotes on how much they will be willing to pay you for the car.

If the difference between the trade offer and your settlement is zero or positive, then the that's your best bet.

If it's negative then you could look at how much it would be to Voluntarily Terminate the car. If you ring your finance company they can tell you what this figure is, and how much you have left to pay before you reach this figure.

To be honest, it makes little sense to pay to get the VT point early. You may as well keep the car and continue to pay it monthly until you reach the VT point through your monthly payments. 

MLAtherton

Best bet would be to speak to the company the PCP is with and explain the situation and see what they say, its hard to say at the minute because of the effects COVID has had on everything. There may something they can do, if not then it would be treated as any other early settlement of PCP i would imagine.

I have a PCP myself at the minute and i am looking to settle it in full and change to a different Car manufacturer. As explained to me, i can settle at any point by returning the car to them, they will then value the car (any wear and tear, excess miles etc taken into account) and knock that value of what is owed on the Agreement. The difference would have to be paid by me and this will obviously change week by week. 

There may be other options as well but i have no experience with them unfortunately.

motorguy

jkirby1965 said:

In July 2019 I took a car PCP deal when work was good, due to the Coronavirus the company I work for has lost circa £20million revenue as a result have made people redundant. Unfortunately I am one of those people so I would like advise with regard to returning the car as I have no job and am unable to make the payments, and it is unlikely that I will get a job anytime soon due to the economic climate.
Regards 
John

Several things.

Firstly, dont sell yourself short and thinking you're going to be unemployed long term.  There are jobs out there, even if you have to get something just to tide you over until the right job comes along.  
Secondly, i wouldnt knee jerk in to getting rid of your car just yet.  You could well find that you need a car for your new job when you get it.
Thirdly, ensure you are getting your entitlements for redundancy from your employer and also ensure you are claiming everything you are entitled to as an unemployed person.
Fourthly, you may well be able to get a payment holiday on your car payments, at no risk to you.  That could give you three months breathing space to sort things out.
Fifthly, if you have a mortgage, you may well be able to get a payment break there also.

Finally, good luck.  I hope you get sorted out soon.  Often these things seem overwhelming at the time, but you might well look back in a years time and consider it just a small blip.  Best wishes.

macman

OP is only a year in, to a presumed 3 or 4 year deal. So way off anything approaching being able to VT it for another 18m to 30m.

neilmcl

macman said:

OP is only a year in, to a presumed 3 or 4 year deal. So way off anything approaching being able to VT it for another 18m to 30m.

Nobody suggested otherwise. I think we should get away from looking at VT in terms of how long the agreement is, at the end of the day the liability is based on paying 50% of the total amount payable, and this can be done at any time.