Personal guarantor for PCP via business

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System
System Posts: 178,102 Community Admin
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in Debt-free wannabe
This discussion was created from comments split from: Dad died with PCP, can they do this?.

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  • Lauralouise89
    Lauralouise89 Posts: 2 Newbie
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    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 ! 
  • Keep_pedalling
    Keep_pedalling Posts: 16,753 Forumite
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    Lauralouise89 said:
    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 ! 
    You need to start your own thread on the correct board. I think the Debt free wannabe would be your best bet.

    https://forums.moneysavingexpert.com/categories/debt-free-wannabe
  • sourcrates
    sourcrates Posts: 28,972 Ambassador
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    edited 29 April at 11:46AM
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    Bump this thread,@fatbelly
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  • DullGreyGuy
    DullGreyGuy Posts: 10,898 Forumite
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    Lauralouise89 said:
    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 ! 
    The right to return the car come from the Consumer Credit Act. The entity that contracted was a company and therefore the CCA will not apply to the contract even though you gave a personal guarantee on behalf of the company. 

    You'll need to negotiate with the finance company on an early termination if thats what you want to to, else see how much you could sell the car for -v- the early settlement figure. 
  • Andyjflet
    Andyjflet Posts: 564 Forumite
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    I have worked in motor finance for many years, a business PCP is a different legal product to a personal one as above, therefore as the personal guarantor you are liable. negotiation is your best option here, try motorway for a decent trade valuation and no hassle. 
    Baby Step 6/7 - £64000 saved for emergency fund DEBT FREE !!!
    Currently Negotiating with HMRC !
  • fatbelly
    fatbelly Posts: 20,654 Forumite
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    I got the call!

    Unfortunately this is going to count as a business debt and so the sort of thing I would refer to Business Debtline

    https://www.businessdebtline.org/

    I'd run it past them
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