Getting out of a PCP early | Motoring discussion | Back Room Forum

Thu 8 Feb 2007 13:56

Getting out of a PCP early - calamata

A couple of months ago I got a new job and with it a monthly car allowance as part of my salary. I got a VW Touran as I needed the space for the family etc. However, for a number of reasons, I need to downgrade the car to something smaller and more economical as I can't afford the repayments on the Touran with some new financial responsibilites on the horizon and sadly won't need something of that size either.

Does anyone have any experience of changing their PCP agreement to allow them to change their vehicle and make lower payments?

Any comments would be appreciated.

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Thu 8 Feb 2007 14:12

Getting out of a PCP early - Falkirk Bairn

You will find the terms & conditions for an early return in the contract.

Whatever it says it will be expensive - it is often said when you start a new car for the very first time £5,000+ glows out of the exhaust ...........................

You are breaking a contract which was due to run for 2/3 or more years after just a few months - the cost will be very steep therefore.

Contact the PCP Finance Company and ask - sit down before you get the letter opened.

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Thu 8 Feb 2007 14:13

Getting out of a PCP early - daveyjp

Did this when we traded our first smart for the second. It was dealt with the same as any transaction when a car with outstanding finance is traded in. They calculate what is owed on your current deal and adjust the new finance deal accordingly.

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Thu 8 Feb 2007 14:15

Getting out of a PCP early - daveyjp

Forgot to add that our deal only had about three months to run.

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Thu 8 Feb 2007 14:56

Getting out of a PCP early - oldtoffee

Agree with all of the above. It might in the long term be better to run with the Touran PCP and look at a low cost bank loan to meet these looming financial responsibilities. The PCP company will definitely not do you any big favours on a new contract on a cheaper car - yes you might end up with lower monthly payments but at the end you'll have a much lower value car with little, no or negative equity in it whereas the Touran might have left you with a grand or two or more which needs to be taken into account . All these figures need to be looked at. If you can't stay with the Touran PCP get the best deal you can to settle it and the best price for the car to minimise your losses. If you do end up owing, a swiftly arranged, unsecured bank loan to cover the difference plus a bit more to enable you to buy something "modest" would be a prudent course of action. Good luck.

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Thu 8 Feb 2007 15:18

Getting out of a PCP early - calamata

Thanks for all the responses/advice so far. I'll look into this in more detail, although it looks like my best bet is to wear the extra expense if I can and see if I can cut costs elsewhere

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Thu 8 Feb 2007 16:07

Getting out of a PCP early - Bill Payer

Are you doing business miles in the car, and, if so, are you claiming the tax back?

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