I took out a PCP with Vauxhall in February this year, over 4 years. I will be going off work on very, very unexpected maternity leave in April next year and was wondering if their was any way of reducing my monthly payments or handing my car back?
I know VT isn’t an option as I don’t have enough savings to make up to the 50% but wondered if anyone had any ideas at all that could help me out? Or to explain what voluntary surrender would involve?
I know it’s pretty much a lost cause but I thought if anyone would know it would be someone on here!
Hi Rachael. Voluntary surrender is pretty much a last resort, and best avoided if possible.
You give the car back to the finance company, they will sell it at auction for whatever they can get and then come after you for any negative equity and additional costs (which will probably be a lot).
Your finance agreement makes no allowance for changed circumstances making it difficult for you to keep up your monthly payments. Unfortunately, you will always be in a difficult position if you are trying to get out of a 48-month finance agreement after less than 12 months.
You can talk to the finance company about ways to reduce your monthly payments (maybe by increasing the term to 60 months), but it may not help your current situation very much and they may not be interested in helping you out anyway.