Anyone know what happens if you break a pcp payment? Car payment and return
Long story, but I am not able to afford payment for a new car i currently have obtained on finance
I've only had it for a year and haven't missed any payment
In about 3 months, I genuinely will not be able to afford to pay for it anymore. I am okay with returning it.
But does it end there, or will they require some sort of payment/fine for wanting to end the contract early?
I was supposed to have it for 3 years and then return or pay balance to own outright.
I've gone through the contract and can't see anything about if I end the contract before expiry date.
Anyone had any similar experience/work in company that does these things or know anyone who has gone through this. What is the process or outcome please?
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You can do a voluntary termination where you give the car back but I think you have to have paid off atleast 50%. The other way you would usually do it is get the settlement figure and have to pay that which will be way more. You'd probably just have to speak to people you got your car from or the company who you have the finance with see what options they have for you.
There should be a repayment section of your contract that states how much the release would be, I think you have to have paid 59% of the contract though for this to some into affect. You would be best contacting them directly and speaking to their financial team
If you miss a payment it will have a negative impact on your credit file so I’d deffo speak to the finance company asap to tell them you’re having financial difficulties and see what options they can offer you. Like Terri says though if you’ve paid off 50% then you should be able to voluntarily terminate but they might try to sting you with excess mileage charges if you’ve gone above the agreed mileage at the time you took out the agreement
Ring them and be honest that you can’t afford it, you should be able to work something out with them. Alternatively get a settlement figure and attempt to sell the car privately for that figure and pay it off in full
Is there any way you could find the money for another 3 months to take you to that magic halfway point of 18 months? You would be able to do voluntary termination with no penalties and also it wouldn’t affect your credit history either.
I don’t think you can return it early before the voluntary termination which is usually when you’ve paid 50% of the total amount borrowed. Contact the finance company for a settlement figure and then see how much you can get selling the car privately. I had to get rid of my x5 when I was on maternity leave and webuyanycar paid me 8K more than what my settlement was on my pcp so I was able to pay the finance company back and have enough left over to pay a deposit for another car. Depending on what car you have and whether you bought it new or not (new cars you will most definitely be in negative equity because the amount of depreciation as soon as you drive it) you might get more selling it privately than what you think. If you can’t get enough from it to cover the settlement you might need to look at a way to borrow money to cover the shortfall and pay back a smaller amount each month over a longer period of time and that way you will be paying less than what you are just now xx
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