20 June 2015 at 10:53 am #66519
I have tried reading through the PCP info on this site and thrived to apply it to my situation but I need more help!
On the 30/09/2014 I took a PCP deal on a new fiat 500 for my partner. She quickly realised that this car isn’t for her, she absolutely hates it. It’s much smaller than she originally thought it would be and a lot less economical than anticipated. Now she wants to take it back and get something else and is pestering me to do so but I don’t have a clue how to go about this.
The duration of the PCP deal is 48 months and we made the fist payment in October 31st 2014.
The arrangement is £119 per month x 48 months plus we paid a £750 deposit.
The cash price of the car was £9,003 so the amount financed was £8,253.
To date we have paid 9 x 119 = £1,071 plus the £750 deposit.
Can anyone please tell me, when and how I can go about getting rid of this car!
The agreed mileage per annum is 10,000 and currently we are at 10,800!
22 June 2015 at 2:10 pm #66521
Hi Jack. You are able to settle your PCP early and part-exchange the car on another one, but you will almost certainly have a significant chunk of negative equity that you will have to clear. Being less than a year into a 4-year PCP, you probably won’t have made much of a dent into the settlement but the car will have depreciated substantially (have a read of our article on new car depreciation).
In summary, she can get rid of her car but it will probably be very expensive to do so. Before you rush into another car purchase, have a read of our Ten Golden Rules for buying a car.