Returning a car on PCP not long into term

[MrFish]

I purchased a car on PCP in January, but recently my work circumstances have changed. This means short term the car is no longer viable (Lower income during training periods + use of a company car).

I was looking for some advice on the best way to return the car, and what position I am in legally to do so?

The car is technically in better condition than when I bought as not long after it had to go to the main dealership for repairs that totalled in excess of £1000, there is also no additional marks to it (although I never recorded the marks on it when I got it regretfully, although these are very minor).

Thanks in advance.

[R0b]

Re: Returning a car on PCP not long into term

Hi Mr Fish,

Under the Consumer Credit Act, when you exercise the voluntary termination right, the liability is 50% of the total amount payable. However, it also says that if the court is satisfied that a sum which is less than the amount owed equals the creditor's loss, then it will award that sum of money instead.

It would require you to make an application to court but it depends on the whether the court will accept a creditor's loss being the total amount payable under the agreement and if so, you might be able to owe less.

Other than that, you could VT and pay 50% or get the car valued, see how much it is worth or someone is willing to pay for it and if it gets you close to paying off the agreement in full (and provided you have any funds to cover the shortfall) you could sell it and pay the agreement off.