PCP - can we get out after 2 months

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ceri123
ceri123 Posts: 75 Forumite
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My hubby bought a car (18 months old 1600 miles on purchase, now about 4500) on PCP recently and has made 2 monthly payments. However I think he rushed into it and isn’t keen on the car and wants to change vehicle.

I’m assuming he will end up losing a fair amount whatever his options are.

If it’s relevant the PCP is with Black Horse. The dealer he bought the car from don’t have the vehicle he’s now after (it’s a Peugeot dealer, he’s after a Renault). He PXd an old car as a £3.5k deposit.

Any advice or should he just stick with it?!

Thanks
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  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    Hi,

    Voluntary Termination of the PCP agreement under CCA legislation needs to be googled :)

    Have a look at the thread below. Post #4 has a link to a Legalbeagles 'how to' guide. It includes letter templates too.
    Voluntary Termination of PCP with Black Horse
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • antrobus
    antrobus Posts: 17,386 Forumite
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    Willing2Learn wrote: »
    Hi,

    Voluntary Termination of the PCP agreement under CCA legislation needs to be googled :)

    Have a look at the thread below. Post #4 has a link to a Legalbeagles 'how to' guide. It includes letter templates too.
    Voluntary Termination of PCP with Black Horse

    VT after only two months on a PCP?

    Are you sure? :)
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    antrobus wrote: »
    VT after only two months on a PCP?

    Are you sure? :)
    No, I'm not sure. But it was the only option of which I was aware. After all, the OP did say:
    ceri123 wrote: »
    I’m assuming he will end up losing a fair amount whatever his options are.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Cornucopia
    Cornucopia Posts: 16,156 Forumite
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    It won't be eligible for VT for a fair while yet.

    Options are:-

    1. Establish the car's present value, and the settlement figure for the finance. The difference is the amount the OP's OH needs to find to sell the car free of finance.

    2. Go back to the Dealer and ask if they can help. After 2 months, and without a suitable option on the forecourt they will probably say no, but it's more likely with a used car than with new, especially if you buy something else from them.
  • antrobus
    antrobus Posts: 17,386 Forumite
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    Willing2Learn wrote: »
    No, I'm not sure. But it was the only option of which I was aware. After all, the OP did say:

    I'm a 100% sure that they can't. VT is only an option when you've repaid 50& of the finance. OP would be a long way from that goal after two months on a PCP.
  • molerat
    molerat Posts: 31,855 Forumite
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    The CCA allows you to VT at any time, it is your legal right. The rules for VT are that you need to pay to the 50% mark. ;)
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
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    Ignore the PCP bit for the minute.

    Imagine you bought the car with cash from a dealer, then wanted to sell it 2months later. You would expect to pay 2months/3,000miles of depreciation, plus the difference between a dealership price and what you can sell privately (as obviously dealers have a mark up on the cars they sell vs. what you can sell it for as a private seller).

    If you want to trade, then obviously the difference between dealership price and what it trades at is even bigger.

    That's the cost you are looking at to sell it after 2-months. Plus a little bit of interest you've incurred on the PCP finance.

    The fact you got it on finance rather than cash complicates it slightly in that you you borrowed the money, so are paying a finance company the money and not reimbursing yourself the purchase cost, but the principal remains the same. It also does complicate the private selling process as technically you are not allowed to sell it before the finance is settled.

    I could be wrong, and without the actual figures I can't work it out, but I would imagine any idea of paying the finance company up to the 50% total payable cost to VT would be vastly more expensive than selling it for a fair price at this stage.
  • Cornucopia
    Cornucopia Posts: 16,156 Forumite
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    DrEskimo wrote: »
    It also does complicate the private selling process as technically you are not allowed to sell it before the finance is settled.

    You are not allowed to sell it privately before the finance is settled - no technically about it.

    A reputable dealer or WBAC will provide the additional service of settling the finance for you, but they may not pay as much for the car as a private buyer.
  • DrEskimo
    DrEskimo Posts: 2,347 Forumite
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    Cornucopia wrote: »
    You are not allowed to sell it privately before the finance is settled - no technically about it.

    A reputable dealer or WBAC will provide the additional service of settling the finance for you, but they may not pay as much for the car as a private buyer.

    Yes of course. I was a bit vague, but you could reach and agreement with the buyer for a sale price, then settle the finance before receiving the money from the buyer and provide proof to the buyer that the finance is settled before parting with the car (probably advise them to do a HPI check after the finance is settled, although unsure on realistically how long it takes for HPI to update it's records??).

    Obviously far from ideal, hence suggesting it was tricky...!

    Sale or return or using a service like Tootle may be preferable for potentially getting greater than trade in, but still possibly less than private sale.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    I agree with DrEskimo, the PCP is a red herring, you'll be able to trade it in for something else, and there's a cost to that which will be about the same whether it was bought for cash or PCP.

    The way you sell / buy will differ depending who you sell to and buy from, but bottom line is expect to lose maybe a grand, nothing to do with PCP. Does that make it worth hanging on or not?
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