PCP Finance with Cazoo

Gonno_10

Hi all,

I purchased a car with Cazoo on PCP finance a few years ago with the idea that once the finance agreement ends, if the actual market value of the car is higher than what the lender predicted, I could put the difference towards a new agreement on a different car.

Based on the recent reports of their financial struggles and the almost imminent failure of the business, does anyone know if this is an option still open to me if Cazoo goes bust or am I stuck with either paying the settlement figure or giving up the car?

DullGreyGuy

Yes, finance is provided by a company other than Cazoo, what happens to Cazoo is irrelevant. 

With PCP you have a balloon payment at the end or you hand the car back. Clearly if the car is worth more than the balloon then you buy it from them, if it's less you hand it back. If you want a different car then you effectively buy it from them and instantly trade it in so the new dealer makes the balloon payment for you and either gives you the delta or uses it as a deposit for a new car. 

Note that these things dont always go the way you think though... with our last car on PCP the balloon was about £8k over the value of the vehicle and so was definitely one to hand back and walk away.