Can I end my PCP agreement when it’s only been a month ?

Can I end my PCP agreement when it’s only been a month ?

Author
Discussion

SJ0620

Original Poster:

5 posts

2 months

Wednesday 25th September
quotequote all
Hi everyone,

The title pretty much sums it up.. I bought a car and I am not enjoying it at all for various reasons. I did test drive but I guess that sometimes alone is not enough to give you a holistic idea of a car you’ll be driving daily!

I was wondering if there are ways for me to end my PCP early? I know the usual standpoint is you wait until you’ve paid at least 50% off for voluntary end to PCP.

But as mentioned, I’ve literally only had the car a month!

Any advice would be much appreciated and please spare me the PCP is a prison cell analogies 😭

Many thanks

GreatGranny

9,343 posts

233 months

Wednesday 25th September
quotequote all
What does it say on the contract you signed?

Alternatively contact the finance company or dealer you got it from.

peterfield781

218 posts

6 months

Wednesday 25th September
quotequote all
You can always get a settlement figure to clear it at any time if you have alternative capital. Believe the initial cooling off penalty free period is 14 days however.

https://www.citizensadvice.org.uk/debt-and-money/b...

Edited by peterfield781 on Wednesday 25th September 11:01

SJ0620

Original Poster:

5 posts

2 months

Wednesday 25th September
quotequote all
peterfield781 said:
You can always get a settlement figure to clear it at any time if you have alternative capital. Believe the cooling off penalty free period is 14 days however.
Yes I did request a settlement figure and that states what I would have to pay now. But there wouldn’t be any further/hidden costs surrounding this would there , is it just the settlement figure alone which I need to pay off?

GreatGranny

9,343 posts

233 months

Wednesday 25th September
quotequote all
SJ0620 said:
Yes I did request a settlement figure and that states what I would have to pay now. But there wouldn’t be any further/hidden costs surrounding this would there , is it just the settlement figure alone which I need to pay off?
Was it a reasonable amount?

SJ0620

Original Poster:

5 posts

2 months

Wednesday 25th September
quotequote all
GreatGranny said:
SJ0620 said:
Yes I did request a settlement figure and that states what I would have to pay now. But there wouldn’t be any further/hidden costs surrounding this would there , is it just the settlement figure alone which I need to pay off?
Was it a reasonable amount?
Hi, it said circa £18k - given I’d have to raise the funds via selling the car of course to maybe WBAC or privately I guess?

Save Ferris

2,703 posts

220 months

Wednesday 25th September
quotequote all
SJ0620 said:
peterfield781 said:
You can always get a settlement figure to clear it at any time if you have alternative capital. Believe the cooling off penalty free period is 14 days however.
Yes I did request a settlement figure and that states what I would have to pay now. But there wouldn’t be any further/hidden costs surrounding this would there , is it just the settlement figure alone which I need to pay off?
The settlement will not have any additional hidden costs, pay that and the car is all yours.
They do tend to last 14 days though, so be aware of this when you are making the payment.

SJ0620

Original Poster:

5 posts

2 months

Wednesday 25th September
quotequote all
GreatGranny said:
What does it say on the contract you signed?

Alternatively contact the finance company or dealer you got it from.
“You have the right at any time to make early repayment. To do so, you should give us notice and pay us some or all of the sums payable by you before you are obliged to do so under this agreement. The payment should be made before the end of the period of 28 days”

peterfield781

218 posts

6 months

Wednesday 25th September
quotequote all
If it’s a consumer credit agreement you signed it should really state any fees and charges for early settlement. Should be much less than the interest payable for running the full term but may be a couple of months’ interest penalty possibly.

https://www.webuyanycar.com/car-finance-calculator...

Edited by peterfield781 on Wednesday 25th September 11:19

Evil.soup

3,695 posts

212 months

Wednesday 25th September
quotequote all
I would have assumed there was a hand back option with penalties, may be worth looking through the small print of the terms on that point before you go trying to finance your way back out of the car. It may be a better option than interest related repayments on finance and risk of not getting a full return of funds on sale of the car to cover your costs.

Out of curiosity and nothing to do with the situation, what car is it?

bennno

12,733 posts

276 months

Wednesday 25th September
quotequote all
Evil.soup said:
I would have assumed there was a hand back option with penalties, may be worth looking through the small print of the terms on that point before you go trying to finance your way back out of the car. It may be a better option than interest related repayments on finance and risk of not getting a full return of funds on sale of the car to cover your costs.

Out of curiosity and nothing to do with the situation, what car is it?
There is, you pay 50% of the full agreement including interest, youd hope after a month the car is worth considerably more than that.

To the OP, get a settlement figure, get a WBAC quote (but youd need to speak to them as they wont buy cars with less than 3 months ownership), perhaps try the dealer you brought from and see if they'll buy it back from you - noting it'll be a chunk less than you paid.

As per other poster what is the car, was it brought new or used?

CloudStuff

3,848 posts

111 months

Wednesday 25th September
quotequote all
If it's a regulated agreement - which PCP usually is - then yes. 2 months interest can be added.

Used to be done a lot to take advantage of OEM promotional offers, and then pay off.

Run the risk of annoying the salesperson as there commission may be based on the agreement running for a certain period.

But can you? Yes.

ilikejam

1,105 posts

123 months

Wednesday 25th September
quotequote all
If you get the settlement figure in writing on headed paper, WBAC will pay it off for you when you sell them the car. Any difference in the 2 prices will need to be paid at time of sale (or in best case refunded to you!)