Options for finishing a PCP plan early

[Samgilding16]

I’ve currently got a car on a PCP plan which I took out over 4 years, I will be 2 years into it just after Christmas. I don’t need a diesel anymore due to a change in circumstances and have got my eye on a RS5 now I’m not doing as many miles.

When I bought the car, the salesman told me that after the plan was half way through I would be able to terminate at any time if I wished to, after looking into it half way through I now realise he was talking about volontoury termination and that it requires half the balance to be paid INCLUDING the final payment, not half of the contract length. Pretty pissed off as I was definitely misled on how this worked and to be honest the thought I could just return the car hassle free after 24 months if I wanted to was one of the things that swung me towards taking out the deal but I guess that’s what I get for taking the salesman at his word and not doing my own research on it.

I’ve spoke to the dealer and they said I could trade it in there & clear the outstanding finance providing the value of the car at present isn’t less than the finance still owed which I don’t think would be a problem as I’ve looked after it & done a lot less miles than the agreement was based around, however this would limit me to a Merc again which isn’t ideal as I want an Audi.

Has any been in a similar position before? Could I trade it in at any dealer and use the p/x value to clear the outstanding finance? Any other options or am I pretty much stuck with it for another 2 years?

Thanks in advance.

[Edible Roadkill]

Easy, you can either.....

1) See what Audi will give you against an RS5 as a trade in.

Or

2) Sell it to the motor trade (wbac etc) and take the hit on the short fall.

I've done the former. Needed to get rid of a car I wasn't using any more. Cost me a couple grand but I'd already bought the replacement car so it was going to cost a lot more just sitting on the drive.

[Samgilding16]

To be honest if it’s only a couple of k I wouldn’t mind taking the hit, would probably do me good in the long run anyway. Thought I was getting a good deal on pcp, when in actual fact could of took a car loan over 5 years instead of 4, paid an extra £30 a month and actually owned the car at the end of it rather than being left with a £10k balloon payment but you live and learn.

Thanks for the help it’s good to know I’ve got options & am not completely tied in

[Edible Roadkill]

PCP is shockingly ste, I've done it once and will never do so again.

[Samgilding16]

Me neither. If you’ve got no desire to own the car, lease hire is the way to go. PCP is literally the worst of both worlds. Never again.

[valiant]

Well not exactly. If you read the paperwork and do your research properly a PCP type arrangement can be alright in the right circumstances.

[tuonopepper]

Samgilding16 said:

Me neither. If you’ve got no desire to own the car, lease hire is the way to go. PCP is literally the worst of both worlds. Never again.

I've just taken a £1500 hit getting out of a 48 month PCP in month 30. I know I get bored after 30 months, last 2 PCPs have proved this and ended the same way, never any value at that point.

I'm now moving into a lease, 3+23 or 3+30 so I'll be ordering the next car about the 24 month point.

[Samgilding16]

I leased a c class coupe before my current car, honestly don’t know how they did it for the money & made a profit. Good value & you know where you stand from the outset.