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Can I get out of car PCP

(7 Posts)
Blackfellpony Wed 28-Sep-16 17:03:15

Question in title really but I have had my car for 12 months and it's costing me a fortune.

I currently pay £360 on a 3 year old car costing 18k and feel like I could get a much better deal elsewhere. I could lease the same car brand new for £150 less!

I got the car before I fell pregnant and now wish I had got something lots cheaper as I am on maternity leave!

Can I get out of this finance without massive penalties? I have not paid off half of the balance and am far from it so can't hand it back.

cozietoesie Wed 28-Sep-16 17:59:18

Have a read of this. I think it's still current but I'm sure other posters will correct me if there have been significant changes.

I think the answer is 'Yes - but you may take a hit and you may not be able to do it right away'.

Have you all the initial documentation? And did you put in a deposit?

Blackfellpony Wed 28-Sep-16 20:21:44

Thank you cosie I will have a read of that.

Sadly it looks like I am stuck.

My maternity pay is only £550 and I am paying £360 on the car so that's the main problem but we do not have any spare money at all to put towards it.

We put down £1000 deposit initially and the agreement is over 4 years with a ballon. I wish I hadn't been so stupid and researched more sad

cozietoesie Wed 28-Sep-16 20:24:43

You weren't being stupid. These people are experienced in having you sign something before you walk away, I fear.

PoochiePoo Wed 28-Sep-16 20:25:54

Yes you can as long as what you owe is less than what the car is worth so you can settle your finance. If you owe more than the car is worth, you either have to take the hit or keep paying. I've done this with previous cars.

Scotmum83 Thu 29-Sep-16 15:16:12

You may be able to go back to the dealer and swap it for something cheaper but it's best to phone the finance company first and ask what your current options are.

You could sell privately and pay off the remaining finance or get a loan to pay off the balance which may be cheaper if you can get a better rate. Sounds like you're interest rate may be quite high if you are paying £360 a month. Do you know what the rate is?

user1474439326 Sun 02-Oct-16 18:49:08

You can normally get out if you are over halfway but you have to cover any negative equity. I have done this several times and added the negative equity onto the next car - presumably because the new dealer were so keen to sell me a new car! Anyway ended up paying more than I should have for a crapper car!
I'd ring the finance company as all agreements are different.

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