PCP - can daughter end and return car.

TheGardener

My DD took out a PCP around 18 mths ago. The relationship with the car has never been a happy one (that feeling some of us get when a car is a bit 'jinxed' - I know that sounds like nonsense but nothing seems to end well with this car) 
Anyhoo - she was involved in a no-fault accident and although the car can easily be repaired, she no longer wants to drive it. Other life changes (new job, new area) mean that it would be better for her if it could be returned. She appreciates the finance will need to be settled and she will most likely lose money but before she starts talking to the finance company - what are the basic rules? 

Racky_Roo

It depends on the contract, she'll need to check but you usually need to have paid off a certain amount before it can be handed back and be a certain way through the contract. Also just to be aware, there may be costs associated with handing it back as the car basically needs to be in brand new condition otherwise you get charged for any damage. So it would need to be fixed first as the charges the apply are ridiculous. I disputed loads on mine and they did agree to wipe some, but I think I paid about £200 for a couple of tiny chips which for all I know, may have been there when I picked up the car from new.

shiraz99

It's pretty straightforward but the first thing she should do is get the settlement figure from the finance company. With this she has the option if simply settling the finance herself then selling the car on, or she could trade the car in and get the car dealer to settle the finance on her behalf, or she can sell the car herself (with the knowledge of the finance co.) then pay off the finance from the proceeds.

Worth using Webuyanycar to get an idea of the trade value of the car to see how it stacks up against the settlement figure.

The other option is to voluntary terminate the contract and simply hand the car back, but she must pay, or have paid, 50% of the total amount payable of the finance. As she's only 18 months in it's unlikely she's anywhere near this figure yet.

ontheroad1970

The car would need to be repaired before she would be able to VT it.

Grumpy_chap

TheGardener said:

My DD took out a PCP around 18 mths ago. The relationship with the car has never been a happy one (that feeling some of us get when a car is a bit 'jinxed' - I know that sounds like nonsense but nothing seems to end well with this car) 
Anyhoo - she was involved in a no-fault accident and although the car can easily be repaired, she no longer wants to drive it. Other life changes (new job, new area) mean that it would be better for her if it could be returned. She appreciates the finance will need to be settled and she will most likely lose money but before she starts talking to the finance company - what are the basic rules? 

Treat this as two steps, each entirely unrelated.

First, get the insurance to repair the car and conclude that process.

Then consider what she wants to do next with regard to keep the car, change the car, not have a car at all.
18 months into a PCP but you don't mention the total term - that may mean that VT is not an option. VT is often commented as a less-favoured outcome in any case.
What is the settlement figure to pay off the finance?
What is the car worth to sell?  WBAC / Motorway / local traders / trade-in.

Given that used car values are robust at present, it may well be that the car can be sold on and the financial penalty not too painful.  The down-side to that is that any replacement car will be more expensive, or a longer lead time for a brand new car.  (Not a concern if not getting another car.)

How bad is the damage?  If she buys a different used car, she will not know whether there has been past damage.  At least her own, repaired car is a known quantity.