PX a pcp

humey86

Can i part exchange a pcp car that is in negative equity? Im looking to change my car and buy outright something different. I have around £6k to go to get it into 50%+ of the balance. Can i make an over payment of £6k?

MinuteNoodles

The 50% point (including balloon payment) is where you can voluntarily terminate the deal then hand it back to the finance company and owe nothing else, not P/X it to buy something else. You would need to find enough money to completely clear all of the remaining finance (including any balloon payment) that was still left over after the PX value if you were to P/X it.

So say you had £4000 left to pay on the finance with a balloon payment of £6,000. The garage offers you £7000 as P/X. You'd have to find £3000.

So yes you can P/X it and pay off the remaining balance but I suspect the number you'll have to find is going to be much larger than you think.

It is possible to roll up the remaining finance onto the next car in some cases.