Advice on cancelling a PCP agreement due to bereavement

[David100]

I am dealing with the estate of my cousin who died recently and have applied for a grant of Letters of Administration.
I would appreciate some guidance on dealing with her car which is subject to a PCP agreement.

[des8]

Your options will depend on what other assets/debts your cousin's estate has:

1)you could settle the outstanding debt and keep the car for the estate if there is enough money to cover the settlement figure.

2) you could arrange for the finance company to sell the vehicle at a trade auction. Whatever it earns at auction (after auction fees) is taken off the debt.and the estate pays any balance still owing

3)You voluntary terminate the finance agreement. This requires you to repay 50% of the total amount payable, which may already be done. If not, you can pay whatever is needed to bring the total paid up to the 50% point. The car is collected by the finance company with nothing further to pay, assuming you have complied with the normal conditions of voluntary termination

[David100]

Thank you DES8.

Part of the estate includes a car subject to a PCP agreement which is for 37 months ending in April 2021. I have written to the finance company to inform them and sent a copy of the death certificate. I have asked for a statement of account and for them to outline my options.
From my calculations based on the information I currently have, the next instalment will take us over the 50% threshold that will allow me to enact a Voluntary Termination of the contract which you mention in your reply. From my limited knowledge, I believe this will be my best option.
Until I receive probate, I know I cannot dispose of any assets but am I also correct to assume I cannot enact Voluntary Termination until then?

[des8]

Afraid you will have to wait and see what finance company comes back with!
Some are more sympathetic than others.
Depending on whether or not the 50% has been reached they may take it as early settlement or accept voluntary termination.

[David100]

Thank you DES8, I will see what they come back with.