Is there a way to get out of my car finance?

[Butterflysize]

A recent new car benefit has come in at work which would massively benefit me from a tax liability perspective and save a lot of money. However, I am tied into a car finance (PCP) deal on my existing (slightly used) car. Taking a look at how to extract myself, there is a significant gap that I’d need to pay as the car has depreciated quite a lot since I bought it. My financial situation has also slightly changed so I could use the extra few hundred quid a month I could save with the work scheme.

I was trying to think if there is something creative I could do to get out of it. Only thing I could think of is to buy a new, but much cheaper car from an online car sales site on PCP, trade this in as part exchange, then cancel it within the 2 week period you can pull out. But then do they still sell the car you have sold to them in Px?? I hope I’m explaining this correctly- I’m not sure I am. Or that you can do it.

Any one with experience of getting out of PCP in similar circumstances or any ideas I’d really appreciate it- TIA

Phone the finance company and ask for a settlement figure.

I used voluntary termination to end my previous pcp. I think it's only applicable if you are more than half way through your agreement though.
Worked out the most cost effective way for me.

@alwaysmovingforwards I did, it’s about £5k short of what the car is selling for online unfortunately

@lij8793 what happens with that if the car is worth less than is left on it?

you'd need to do the calculation of the car benefit at work that would massively benefit you (I don't know of any such scheme being "massively beneficial" as they will always be taxed as a benefit in kind) and see how much better off you'd be compared to taking the loss if the valuation of the car is less than the remaining finance.

short term, once you've got to the point in the PCP that you've paid back 50% of the car finance cost, it would extricate you from that PCP and will enable you to take up the work 'offer', if your concern is the monthly payments currently on your PCP.

You either have to sell it and make up the shortfall, or wait until a break point in the pcp agreement. I've been in a similar situation and unfortunately, you just have to suck it up.

I had to wait for the break point and hand the car back. PCP works in some instances, but when circumstances change, they are a pain in the arse.

If you've paid 50% of the value of the agreement, you can often hand back the car. This is what we were going to do with ours, although we didn't need to in the end. I think you'd have to pay for any damage they found on the car but nothing further.

The clause in the contract was very clear that all that mattered was having paid off 50%, the market value of the car wasn't relevant.

What did you end up doing? I’m in exactly the same position and thinking of “creative ways”