PCP cancellation

[Caramel88]

My husband signed for a PCP deal less than 14 days ago. Our situation has changed sonewhat and we will not be able to afford the repayments. It's a stock car (so not specially ordered) and we have not yet taken delivery. Is there any way to cancel the order?

[R0b]

Re: PCP cancellation

Morning,

Depends on whether the agreement has already been signed and if it was signed on the premises or the agreement was posted out to you and signed then returned. If you cancel before delivery and finance is involved, you can generally cancel the car but you'd still be liable for the finance and will normally have to stump up the full loan amount within 30 days plus any cancellation fee if applicable.

The only other option I can think of is going to court. Under normal circumstances, you can voluntarily terminate the agreement and be liable for 50% of the total amount payable however you can ask a court to determine a lower sum to be paid, which I am aware has happened previously for example where a debtor only used the car for a few weeks and then returned it and was able to pay the depreciation value of the car for those few weeks. It's not guaranteed so I would suggest you take some advice on it.

Final option is to write to the lender and explain your circumstances have changed completely and are no longer able to afford the finance. Perhaps offer to pay any cancellation fee in return for terminating the agreement without penalty, if they refuse then all you can do is make a formal complaint, then follow it up with the Financial Ombudsman if they don't uphold your complaint and explain that they failed to take into account your change of circumstances which under the FCA they should account for someone who is not able to pay their debts as part of treating customers fairly.