Getting out of pcp deal?

[squeezebm]

Hello

Posted in GG,but probably better off in here....

Lady squeeze has an audi a1 on a 3x23 pcp with audi/vw finance,shes approx 6 moths into deal and wants out.

How if any is the best(cheapest) way to go......or does she take the medicine and pay off remainder....

Cheers

[Rambaud]

She needs to look at her Agreement.

IIRC, the industry norm is 50% of the outstanding rentals for Contract Hire agreements - not sure if it's the same for PCP.

[craigb84]

Rambaud said:

She needs to look at her Agreement.

IIRC, the industry norm is 50% of the outstanding rentals for Contract Hire agreements - not sure if it's the same for PCP.

It is. I believe the wording is that 'you must have paid at least half of the total amount payable' (which will be shown on the credit agreement).

6 months into a 2 year contract there's no chance.

It'll cost no matter what to get rid so I would get a settlement figure first and go from here. I think you'll be in for a shock though.

If you're in a lot of negative equity you may as well just keep the payments running until you've paid half rather than stumping up the difference yourself.

[sinizter]

I sold my car 7 months into a 4 year PCP.

BMW on BMW finance. I had put in about £3000 extra payments in the ownership period, which meant I got £1700 or so back when the car sold. If I hadn't made that payment, I might have had to pay in £1300 to close the finance after selling the car.

If it's a new car (or even if not) best bet might be to ask the dealers to buy it back.

[adaptive]

'ello matey

It's a lease isn't it rather than a PCP?

I think you're going to either have to find someone to take over the lease or pay the early termination fee.

You could try somewhere like http://www.takemylease.co.uk/

[AtticusFinch]

adaptive said:

'ello matey


You could try somewhere like http://www.takemylease.co.uk/

Thats interesting I know this has been running for a while in the States. What do the finance houses think of this, I can't imagine them being keen.

[Rambaud]

AtticusFinch said:

Thats interesting I know this has been running for a while in the States. What do the finance houses think of this, I can't imagine them being keen.

I would have thought any assignment/transfer would have required the Finance House's agreement?

[sinizter]

Rambaud said:

AtticusFinch said:

Thats interesting I know this has been running for a while in the States. What do the finance houses think of this, I can't imagine them being keen.

I would have thought any assignment/transfer would have required the Finance House's agreement?

The person the lease is transferred to has to pass the credit checks of the finance house and they have to agree.

[Rambaud]

sinizter said:

The person the lease is transferred to has to pass the credit checks of the finance house and they have to agree.

Thanks for the confirmation.

That was certainly the case for the ones I got involved with for clients - but it was a few years ago.

[sinizter]

Rambaud said:

sinizter said:

The person the lease is transferred to has to pass the credit checks of the finance house and they have to agree.

Thanks for the confirmation.

That was certainly the case for the ones I got involved with for clients - but it was a few years ago.

Just to confirm, that was information from websites like the one listed above.

In my own case, I just traded my car in to the BMW dealers - who paid off the BMW finance, and I got a another car off them as well with a new deal.

[skeeterm5]

Get a settlement quote, sell the car, pay off finance. If lucky you walk away with some cash, if not you stump up some cash to cover the shortfall. Simple.

S

Edited by skeeterm5 on Thursday 16th February 21:17