Possible to extend PCP lease

guysl80

Hi 

Is it possible to extend a 4/5 year PCP lease rather than paying the final amount.
I'm putting a deposit and the monthly lease amount is affordable but rather than paying the fees optional amount will the agent allow to extend the PCP lease.
I'm interested in purchasing a Skoda Kodiaq or a VW Tiguan allspace 2020+ model

Thanks 

born_again

You could just get a loan & pay it off. As would not expect PCP to be extended. Especially given the age of the car you are looking at.

4/5 years PCP on a already 3/4 year old car... Is that a wise decision?

But 4/5 years is a long way & who' knows where car marketplace will be then.

Veteransaver

Not normally. If they did they'd likely just convert it to a normal HP (ie effectively loan you the final payment over x many years).
But you could do that yourself anyway by just getting a loan

A PCH can often be extended, but not a PCP

is there any equity in the car?

Ayr_Rage

@guysl80 what EXACTLY is the contract you are contemplating ?

PCP is not a lease, it is purchase contract with a final optional balloon payment at the end.

A true lease can be extended in certain cases but you never own the vehicle.

Goudy

Borrowing more money to pay off the GFV of a PCP deal however you do it, is a really really expensive way to buy the car.

You will pay the interest on all what you have borrowed on the original PCP contract, this includes interest on the GFV part. The payment of the GFV is differed but not the interest on that amount, you pay that in the monthlies. 

Then borrow again with interest to pay the GFV that you have already paid lots of interest on.

The interest rate on the original PCP, because it's a used car tends to be much higher anyway.
It sounds like financial suicide to be honest.

The finance company usually won't extend the PCP but they will often offer a straight loan to pay it off.

You'll find this loan is likely to attract rather higher interest rates than your original PCP, so makes the car eye wateringly expensive when you work out what the total cost to buy it will be.

Your options at the end of the PCP are to hand the car back to the finance company and if it's within there terms and conditions on mileage and condition, pay nothing else. (good if the car in in neg equity)

Trade the car in for another.
This can be nearly as expensive as what you are thinking of trying above.
Any negative equity in the car (say the trade in value is lower than the GFV) often gets rolled into the next deal, so you pay interest again twice, but hopefully there's not much between the two figures as it's not likely to be totally worthless.
Quite often there's some equity in the car, so it's worth than the GFV, you can usually negotiate this if you try hard enough. 

Pay the GFV and keep the car.
This I would only do with an interest free loan or savings.