Getting out of a PCH deal...

J35T3R

J35T3R

J35T3R

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12 Feb 2019
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221
Location
Sunny Ayrshire, Scotland.
.....way early, is it possible? I know how much I would roughly have to pay to do this but with furlough, lockdown and being office based, we just dont see the need for 2 cars. My furlough is extended and I'll be mainly home based for a while after I do go back. Mrs is in the same boat.

My Mrs is a year in with 2 to go, I'm 5 months in to a 3 year deal.

Any one had experience of trying to wrangle a deal or is the contract just that, no wiggle room? I would like to think a better deal could be made given the circumstances.
 
As said above, you need to read the small print in the agreements you've signed but typically this a downside to PCH/Lease compared to PCH/HP, it's harder to get out early in most cases.

Can I cancel a Personal Contract Hire lease agreement early?
Rules and cancellation policies vary from company to company, though as a rule it is much more difficult and expensive to end a lease early than with an equivalent PCP finance deal.

You can cancel the agreement early but you are likely to be issued with substantial penalty charges, or even a bill for all of the outstanding monthly fees. If that's the case, that would involve you continuing to make all of the remaining payments even if you handed the car back.

If you think you may need to end the contract on your next car early, it's worth reading the terms and conditions regarding returning the car ahead of time to see exactly what the situation is. Alternatively, drivers who take out PCP finance have additional protections when looking to return a car early, including voluntary termination, which allows motorists to hand a financed car back ahead of time with no further charges, provided more than half of the overall finance balance has been paid.
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https://www.buyacar.co.uk/car-finance/pch/688/what-is-personal-contract-hire-pch
 
If you had said PCP, then I'd have told you to go back to the dealer for a valuation and see how far it is off your settlement agreement.

Unfortunately one of the major cons of a PCH is early termination. Basically the fees are so high, it simply makes no sense. I'm afraid I think you're going to have to keep it to term.

Did you take PCH on both cars?

You need to look on the bright side, you both still have jobs. Imagine your situation if you both became unemployed. Whilst it may be difficult, it could be much worse.

It may be a real long shot, but some leasing companies do allow you to buy the cars. The one I am just about to enter into certainly does, although I'm not sure if it's only available at the end of the lease. In any case, worth asking. Find out if you can buy the car, then find out what it's worth. Could you buy the car, then sell it straight away? Like I say, a real long shot but other than that I can't see any other option.

Leasing in my mind only makes sense if you are doing it through a work scheme to offset tax. The savings made can almost pay for the car. I don't understand it for a personal purchase versus a PCP. You really are giving up so much flexibility to save a few quid.

If you really have to get rid of the car, a last resort option could be to pay the termination fee on a 0% credit card. It may sting, and you may still be in effect paying a similar amount a month with the credit card bill, but rather than doing it for three years, it could be maybe one year. Could lift the pressure a bit.
 
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I think most of those who have ended a PCH deal early are those who have had accidents and ended up writing the car off, with their GAP insurance saving them.
 
One of the guys who I work with has just done this, terminated a PCH since his car payments from work has ceased for the foreseeable future, he had 17 months left of 3 years with VWFS and negotiated a deal with him only liable for 6 months of payments, but handing the car back immediately. He did inform them that he would end up defaulting on the payments if they couldn't negotiate, and he'd be more than happy to go to court about it.
 
I got a quote to cancel my PCH 3 months early (saw I a car I was interested in purchasing) and thought the charges were very reasonable. The biggest problem was they insisted on a hand signed and posted document and I don't have a printer.
 
Trifid said:
I got a quote to cancel my PCH 3 months early (saw I a car I was interested in purchasing) and thought the charges were very reasonable. The biggest problem was they insisted on a hand signed and posted document and I don't have a printer.
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You can get some dirt cheap printers these days, in fact HP do some which come with a free ink subscription
 
Trifid said:
I got a quote to cancel my PCH 3 months early (saw I a car I was interested in purchasing) and thought the charges were very reasonable. The biggest problem was they insisted on a hand signed and posted document and I don't have a printer.
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Even if you had to shell out for £30 for a cheap printer, it'd be worth it :)
 
J35T3R said:
.....way early, is it possible? I know how much I would roughly have to pay to do this but with furlough, lockdown and being office based, we just dont see the need for 2 cars. My furlough is extended and I'll be mainly home based for a while after I do go back. Mrs is in the same boat.

My Mrs is a year in with 2 to go, I'm 5 months in to a 3 year deal.

Any one had experience of trying to wrangle a deal or is the contract just that, no wiggle room? I would like to think a better deal could be made given the circumstances.
Click to expand...

Unfortunately you signed a contract, and they very much hold all the cards. I'd like to think I'll wake up with a Swedish supermodel tomorrow, but life doesn't work that way :p

Read the terms, or ask them. They're the ones that'll know.
 
J35T3R said:
.....way early, is it possible? I know how much I would roughly have to pay to do this but with furlough, lockdown and being office based, we just dont see the need for 2 cars. My furlough is extended and I'll be mainly home based for a while after I do go back. Mrs is in the same boat.

My Mrs is a year in with 2 to go, I'm 5 months in to a 3 year deal.

Any one had experience of trying to wrangle a deal or is the contract just that, no wiggle room? I would like to think a better deal could be made given the circumstances.
Click to expand...


So you think you can re-neg on a signed contract and on better terms for you?

Why would any car company do this when the majority of them are facing huge losses?

This is why I bought both my cars cash. I don't need 2 either but they aren't really costing me anything apart from insurance so I'll keep them for now. I'll probably in 2-3 years time sell both and move to 1 car most likely electric or plug in hybrid.
 
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