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New PCP but have to cancel

Home Forums Car finance New PCP but have to cancel

This topic contains 3 replies, has 1 voice, and was last updated by Stuart Masson Stuart Masson 4 years, 6 months ago.

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  • #65234 Reply

    My wife has fallen ill with depression and has to give up her new job.
    When she started, the company insisted on her having a suitable vehicle for the role, which they pay a monthly Car allowance for.
    With this in mind, my wife arranged for a brand new BMW 520D (like she has used before) on a BMW Finance PCP deal.
    However, three months into the job, she has had a complete mental breakdown and has been signed off on long-term sick.
    The stress of this job is far greater than she expected so she has no alternative but to leave and recover, which could be a long time.
    What happens with the PCP as we can no longer afford to pay for the car on just my salary along with household bills/living/tax/food etc.
    What options do we have as I can’t afford the car?
    The car is 64 reg 520D SE with 3K on the clock

  • #65236 Reply
    Stuart Masson
    Stuart Masson

    Hi Pete. Unfortunately there is no provision in a PCP agreement for returning the car until you have paid off 50% of the Total Amount Payable, at which point you can Voluntarily Terminate the agreement and return the car. Other than that, you can sell the car and settle the agreement early, but you will almost certainly owe more than the car is worth so you will have to pay the finance company money on top of whatever you can sell the car for.

    • #65237 Reply

      Thanks for the feedback.
      This does not sound good for my wife.
      Would it be possible to re-assign the lease to someone else or how could you go about this? Are there people out there who would be interested in this, for example? Perhaps maybe there are execs who could be looking for a deal – but I guess you would need to be very wary of this.

    • #65239 Reply
      Stuart Masson
      Stuart Masson

      I’m afraid not. A PCP is not a lease, and it can’t be reassigned. The only way to conclude the agreement is to repay the settlement amount.

      You can check to see what insurances you may have to cover expenses in the event of her inability to work (eg – PPI), but most people do not have insurance cover for this sort of situation.

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