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Early settlement on PCP. Do I need to pay 50% of Interest costs?

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Comments

  • I have a car through my business which is PCP the business has gone into liquidation and I am the Personal guarantor for the car. I want to give the car back under the halves and thirds rule however The finance company are saying I cannot give the car back under that as it’s though a business, the business no longer exists!! Can I get around this somehow.. help ! 
  • Mildly_Miffed
    Mildly_Miffed Posts: 2,058 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    I have a car through my business which is PCP the business has gone into liquidation and I am the Personal guarantor for the car. I want to give the car back under the halves and thirds rule however The finance company are saying I cannot give the car back under that as it’s though a business, the business no longer exists!! Can I get around this somehow.. help ! 
    And that's precisely why the lender wanted you to issue a personal guarantee for the business-to-business contract. In case the business ceased to exist.

    The business no longer exists - so you personally now owe the money, under the terms of the guarantee that you signed promising to honour the business's debt.
  • Nearlyold
    Nearlyold Posts: 2,418 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 27 April 2024 at 2:11PM
    Do you have a regulated or unregulated PCP? 

    Is it a Hire Purchase or Conditional Sale based PCP or is it a Fixed Sum/Term Loan based PCP agreement.

    An unregulated loan of any type won't have VT rights. 

    A Fixed Sum/Term Loan whether regulated or unregulated won't have VT rights.

    P.S. it's better for you to start a new thread for your query rather than tag on to an existing one.
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