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Ending PCP due to redundancy… Options?

TCE home 2021 Forums Car finance Ending PCP due to redundancy… Options?

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    • #122556
      Mr Chirpy
      Guest

      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
      Stuart Masson
      Moderator

      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
      Mr Chirpy
      Guest

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

    • #150259
      David peach
      Guest

      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
      Stuart Masson
      Moderator

      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/

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