You should contact the financial company to discuss your situation. If you are suffering from real financial difficulties, they can offer alternative payment terms to help you solve your problems. You will probably end up paying more in the long run, but you can get some relief in the short term. But don`t put your hopes into the fact that the financial company is too useful – your first answer will always be to insist that you pay what you owe. And even if you are able to sell the car, its value will be significantly less than your billing figure, so you would still be a few thousand short pounds. You should pay these few thousand either to the financial company or to the trader before the debt is considered settled. There should be a complete set of terms and conditions as part of your contract. You have the right to read them and remove them from the merchant before signing, regardless of what the trader might try to tell you otherwise. Hello out there I`m currently a little over 12 months into a free PCP of interest with SEAT. The car was sold to me at just over 10k. I now need about 8500 and the car is currently worth 4500 ish to act against another car.
The car no longer suits me — I go to a farm on a congested lane, and I worry about the damage it will do to the car I will pay for at the end of my life. Ideally, I have to get out of this agreement and buy a bigger, more robust car, with minimal load. All proposals would be welcome. Charlotte Hi Jools. If you simply return the car at the end of the PCP, you do not receive equity — you simply return it and the financial company wins or loses based on the value it pays against your GMFV/Settlement settlement. You can sell the car yourself, which can earn you a higher amount, in which case you can keep all equity beyond the GMFV/settlement number. Ask your financial company first, as they sometimes have strict conditions for the private sale of the car (the buyer may have to pay the financial company directly for the billing figure instead of paying you, and then you pay the financial company). You can terminate the contract voluntarily, but you must have paid 50% of the total amount to be paid – and you will be far from it after only 6 months, so you will need a large sum of money to reach the 50% point. But it`s important to note that you didn`t necessarily pay 50% of the funding if you receive half of the PCP agreement. This is because the total financial amount includes interest, fees and the final payment of the balloon. The payment of balloons can be quite important.
You may have to wait another time in the agreement to reach the point where you paid 50%. I`ve had a passport contract with Peugeot for 15 years. Meanwhile, I never missed a single payment or was late with one. I decided to move away from Peugeot and go with a PCP contract with Mazda and advise Peugeot. However, after accepting a call for their financial service, they want to charge me $230, because I was funded with them (although I`ve paid them interest for the past 15 years) and an additional $180 pass payment for the car refund a month before the 3rd year. This should allow me to fulfill the conditions of my PCP contract with Mazda. Do I have to pay these sums when I have been a loyal customer for so long? Is their payment a financial payment? Can you really punish me by charging me for a month that I don`t even have the car? I am so angry and I think Peugeot is acting in bad faith. A PCP is a cash deal because you don`t intend to keep the car, but such a high interest rate is always relevant as it pushes your monthly payments up. I would have thought you could get financing at a much better price – try another VW dealership or other financial companies like Santander or Black Horse.