Ending PCP due to redundancy… Options?

Home Forums Car finance Ending PCP due to redundancy… Options?

This topic contains 4 replies, has 2 voices, and was last updated by  David peach 1 week, 5 days ago.

  • Author
    Posts
  • #122556 Reply

    Mr Chirpy

    Good morning everyone,

    My employer has been taken over leading to myself and many others being made redundant. As a result, I no longer require the 16000 mileage allowance and will only be doing 6-7000 per annum and I would like to reduce outgoings.

    My PCP is only 11 months into a 48 month agreement but as the above scenario was unpredictable, I am left wondering what options I have from here.

    I’m aware of the rough principles of VT but if applicable, is the 50% marker at the 24 month period of the agreement, or is it 50% of the total OTR price of the vehicle?

    Your thoughts & advice is greatly appreciated – thanks in advance.

    Mr Chirpy

  • #122730 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    The VT point is 50% of the Total Amount Payable (price of cars + interest + fees). On a four-year PCP, this will normally not be reached until after about three years.

    For more information, have a read of our comprehensive guide to voluntary terminations.

  • #122953 Reply

    Mr Chirpy

    Thanks Stuart – your blog and this forum is a great resource; thank you for your time and efforts!

  • #150259 Reply

    David peach

    Hi I have been made redundant entire due to company takeover and restructuring. The car I have is on a PCP with 9 months left to run under the contracted mileage, how can I get out of the outstanding amount owing ?

  • #122949 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Generally speaking, no. When you sign a finance agreement, you run the risk of not being able to continue paying if circumstances change.

    The only potential glimmer of hope is that finance companies are bound to treat customers who are having difficulty paying with fairness and compassion. However, that’s a very subjective description. For more information, have a read of this:
    https://www.fla.org.uk/index.php/consumer-information/consumer-advice/dealing-with-debt/

Reply To: Ending PCP due to redundancy… Options?
Your information: