Advice on current PCP deal?

Discussion in 'Motoring' started by jassco, Aug 20, 2012.

  1. jassco

    jassco
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    I've got a car on a PCP deal at the moment; the deal was £600 deposit and £242 per month over 3 years. I got a great price on the car, and already 15 months in and the car is now worth more than the outstanding finance, which is £11k. Current value on webuyanycar is £10750, with private sales ranging from £12k-£13k.

    I'm moving into a new job soon where the car won't be vital, so any thoughts on what I should do now? I've spoken to the finance company, and they won't accept a settlement paid by a third party so if I did sell it privately, the buyer would be paying the finance off.
     
  2. m@rk

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    First of all, nobody will (should) buy your car until you have paid off the finance. A HPI check will come back as finance outstanding plus on a PCP deal the car isn't legally yours to sell until you have paid the finance company all monies plus the option to buy fee.

    But it sounds like you will end up with no car, no debt but little or no profit either so there is another option seeing that you are 15 months in.

    Once you have paid back half the payments (value not number) then legally you are allowed to just hand back the car and walk away. This figure will be printed somewhere on your finance documents.

    The finance company might moan but its a legitimate way to end the finance arrangement and will leave no adverse credit history either. It's a lot less hassle than trying to find a buyer etc if all you want is out.
     
  3. jassco

    jassco
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    Cheers, its a bit annoying that there's no way out without having 11k sat about, even though I'm in positive equity.

    I wonder if a citroen garage would enter such an agreement if if there was potential for profit there for them...
     
  4. dereks

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    Surprised it can't be clears by a third party trading it in would involve payment this way we sold a car a couple of years ago on finance the buyer paid the finance company direct no issues at all
     
  5. jassco

    jassco
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    Ye, I've just received the letter through today from the finance company with the settlement figure, which states conditions for a third party sale. The guy on the phone must have been mistaken, or I completely misheard him
     

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