Need to get rid of car on PCP- can't!

[Dontknowwhatisgoingon]

I have made a massive mistake- last year I got a fairly expensive car on PCP as I had a long commute and cheap bills. Now I work from home, and have expensive bills and my expensive car is sitting on my drive goign out maybe once a week using up money that I could use on my bills.

I desperately want to get rid of this car and buy a cheap runaround, my only journeys are to the shop and occasionally taking the dog somewhere nice for a walk! I really need the money i am spending on this car. The problem is that every month I ring the finance company for the repayment amount, and I check the cars value online and every month the difference between the valuation and the repayment figure is getting further and further negative- I thought it would improve the more i paid off but its just getting worse and worse. I will now be owing the finance company around 2k if I part exchange this car. I have 4 years left.

I currently think my only option is to take out a loan to cover a new car and the difference I will have to pay on my current one. I am borrowing from my savings every month and I am going to run out shortly, it is not sustainable to keep.
I've got a large hmrc bill to pay which is what my savings were for, but I've had to set up a payment plan for this which isn't really affordable. I've cut down literally everything I can.

I've tried to get the finance company to reduce the mileage allowance as its 15k miles based on my old job, and see if that reduces the price but they won't do this. I thought of trying to sell privately and see if I can get more.

Can anyone think of any other options?

Does this help:

https://www.confused.com/car-finance/a-guide-to-cancelling-your-car-finance-early

Have you tried Citizens Advice or an outfit like National Debtline?

My first thought is don't hang around - if you can get rid of the car and all future payment commitments, and pay a net settlement figure of circa 2K, then that sounds like a good result if you're only 1 year in to a 5 year PCP.

You have to find/borrow the 2K of course but leaving it any longer is just going to cost you more in total.

Would it be possible for you to do without a car for a while so you don't need to borrow so much straight away?

As for selling the car to a private buyer take a look at this. It may end up being more hassle than selling to a dealer. Either way you'll need to make sure you have an up to date (within last 10 days) settlement figure from the finance company.

Can I sell a financed car? Everything you need to know | carwow

Thank you both so much. The only reason for having a car is as we live very rurally and in case of emergency vet/doctor trips etc. I'll try and get a new settlement figure today and go from there. I'm not more than 50% through so I feel a bit stuck but I'll see what I can do

I think most of the reason for the "gap" appearing to get worse is because used car prices are now starting to fall back again after a few years of being insanely high due to high demand arising from Covid and the computer chip shortage.

In "normal" times, there'd be a huge gap at first (due to the depreciation the moment you leave the showroom) which would be expected to get smaller over time as you pay off the debt, i.e. you're paying off the debt more than the ongoing depreciation.

I would hazard a guess that the gap will start to get smaller as future months pass.

Trouble with cutting your losses and paying it off now, is that you'll suffer the huge upfront depreciation again the moment you drive your cheaper/older replacement car off the forecourt!!