Terminate PCP early due to relocation

manub

I may relocate abroad towards the end of the year (considering my options). I bought my car on PCP in January 2020 - I wouldn't need the car abroad which is why I'm looking at options on how to terminate the contract. Apart from selling the car to a private and/or to the dealer - which will result me in paying a quite high price difference based on what's left on my contract and what the car is valued, do I have any other options? Car is in immaculate conditions and only has less than 2000 miles (pandemic...). Any chance I can talk to the dealer to try and get a better price and/or reduce my final payment?

AdrianC

You borrowed the full price of the car, plus interest, less the up-front payments.

A new car depreciates very rapidly in the first few months after registration.

You need to repay what you borrowed... They aren't penalising you, your car is just worth a lot less than it was when you were handed the keys. Nobody but you is liable for that gap. The dealer are under no obligation to pay you more than they would pay to buy in any other similar car, nor are the financier under any obligation to reduce your debt to them.

Simply - it's you who's changed your mind and wants out of the contract you signed.

manub

AdrianC said:

You borrowed the full price of the car, plus interest, less the up-front payments.

A new car depreciates very rapidly in the first few months after registration.

You need to repay what you borrowed... They aren't penalising you, your car is just worth a lot less than it was when you were handed the keys. Nobody but you is liable for that gap. The dealer are under no obligation to pay you more than they would pay to buy in any other similar car, nor are the financier under any obligation to reduce your debt to them.

Simply - it's you who's changed your mind and wants out of the contract you signed.

Yes of course - I was just wondering whether there could be a way to reduce the gap as much as I can.

Ectophile

The dealer doesn't really care any more.  They sold the car to the finance company, so it isn't their car.  They may well offer to buy it off you, but they will pay what they think it's worth - it's not like you're haggling to buy another car from them.

Your options seem to be:

• skip the country and never come back again,
• pay off all the remaining finance and then sell the car, or
  
• sell the car at the market rate and stick your hand in your pocket to pay off the shortfall - which could be thousands.

Mercdriver

Or get a loan to get enough money to get to 50% of the amount stated on the agreement so you can VT it.  That and the above are your only options.

manub

Yes it all makes sense - of course I'm going to sell the car and pay the remaining balance, not willing at all to skip country will probably sell it privately so I can get more value for money and reduce the gap.

foxy-stoat

manub said:

Yes it all makes sense - of course I'm going to sell the car and pay the remaining balance, not willing at all to skip country will probably sell it privately so I can get more value for money and reduce the gap.

Yes you can do that when you have good title, at the moment you don't.  Call up the finance company and get a settlement figure, including the balloon payment.   Once you pay that off then you can sell the car on the open market.

Good luck.

motorguy

foxy-stoat said:

manub said:

Yes it all makes sense - of course I'm going to sell the car and pay the remaining balance, not willing at all to skip country will probably sell it privately so I can get more value for money and reduce the gap.

Yes you can do that when you have good title, at the moment you don't.  Call up the finance company and get a settlement figure, including the balloon payment.   Once you pay that off then you can sell the car on the open market.

Good luck.

No.

You can sell the car and have the buyer clear the finance directly to the finance company, with the O/P paying any difference.  

Easily done, finance company have no problem with it, buyer gets a great car, O/P gets a better price.

No need at all to settle the finance first

motorguy

O/P

Try contacting the dealer you bought it off and ask what they would buy it back for.  You might be surprised as good quality, used stock is hard to find at the moment.  Also ring round local other dealers who stock similar cars and do the same.

Selling privately will yield a better price generally, but the more expensive the car the less likelihood you'll easily find a buyer.

manub

Thanks everybody - turns out I won't be relocating so I'm keeping the car. Problem solved