5 April 2017 at 12:29 am #110792
Hi I’m new to this so please be gentle! I’m 18 months into a 4 year pcp with Audi and due to unforeseen circumstances I’m having to leave a well paid job and will need to take a less stressful job on a lot less money. I could save a lot by getting rid of my car but when I rang they said I still have over £6000 to pay till I’m at the 50% vt Mark (I don’t have £6k) any suggestions of anything else I could do? I’m worried about it and don’t want to get blacklisted or anything. Thank you
6 April 2017 at 10:28 am #110840
Hi Dawn, I had similar experience and understand your concern. There are specific ‘rules’ about PCP and how much you have to pay back. I went to CAB locally and asked and got really good advice, you wouldnt get black listed as such, but it could affect your credit score and ability to get credit in the future, if you try to just walk away from it. Main thing if you go to CAB is to ensure you take all the paperwork to do with the PCP with you. You might find in among that print is what the balloon payment is. The garage will give you a ball park figure over the phone, without actually seeing the car, so it is always worth taking it in person to get them to have a look at it. But to reiterate, find out all the paperwork, ask Citizens Advice for help locally to where you live (they have online facility too) and try not to worry. You wont be alone … I think Martin Lewis money advice website has info about PCP too. I ended up handing my car back and vowed never to by on PCP again. It meant getting a much cheaper and less fancy car, but I did get a reliable one and end of day, that is what I needed. Good luck and try not to worry.
6 April 2017 at 5:31 pm #110853
Hi Dawn. The numbers quoted by your finance company sound about right. A four-year finance agreement means you are committed to those payments for four years, and for most of that time you will be in negative equity, where you owe the finance company more than your car is worth.
You can sell the car privately, but you are still likely to end up well short of what you owe the finance company, so you will still need to put your hand in your pocket to a similar degree to settle the finance.
The finance company may be open to renegotiating your payments (ie – lower payments for a longer period of time), but they are not obliged to and it would probably mean that you pay more in the long term.