Car on PCP - moving abroad

and one for yourself

Hi All,

I've just (literally about an hour ago) found out that my job will be finishing in a months time in Ireland. Luckily they are offering relocation to a few staff to start the new office in Oz.

One big drawback is that I recently, in January, entered into a PCP agreement on a new car. Does anyone have any experience or advice on ending these agreements early? What are my options here?

I've lived in Ireland all my life and never really planned on leaving but having a guaranteed job in Australia seems like too good an opportunity to pass up. Any advice here would be appreciated. If I don't move, I'm going to be jobless in a month which would make the PCP pretty hard to maintain anyway.

Cheers.

Del2005

Your PCP contract will have this covered.

and one for yourself

Del2005 wrote: »

Your PCP contract will have this covered.

Thanks for the reply. How do you mean covered? I know there is a balloon payment at the end of the term (about 15k). I'm assuming this would need to be paid out?

grogi

and one for yourself wrote: »

Thanks for the reply. How do you mean covered? I know there is a balloon payment at the end of the term (about 15k). I'm assuming this would need to be paid out?

You can either pay the remaining balance or handle the car back and cover the difference (which should be around nil).

Del2005

and one for yourself wrote: »

Thanks for the reply. How do you mean covered? I know there is a balloon payment at the end of the term (about 15k). I'm assuming this would need to be paid out?

It'll have the costs/penalties for ending the contract early.

bazz26

grogi wrote: »

You can either pay the remaining balance or handle the car back and cover the difference (which should be around nil).

Let's hope the OP didn't put a large deposit into the PCP deal.

DriveSkill

To get the final settlment figures you will have to ring the PCP finance company but you can work it out roughly :



(remaining months * monthly payment) + GFMV (Balloon Payment)


That is the overall total of what you owe - lets call it A. It should reduce based on paying back early - its very unlikely to be more than this value!


Now take your new car price and figure out how much its worth - unfortunately even at 8 months old you could be looking at 20+% off the new price but it depends a lot on the car, current mileage etc etc... Lets call this B.


so if A==B (or close) its likely you would be able to hand the car back and walk away. If A is a lot more than B then you will owe them some money and if you have put a big deposit down to start then B might be more than A in which case you may get some money back!

U_Fig

DriveSkill wrote: »

To get the final settlment figures you will have to ring the PCP finance company but you can work it out roughly :



(remaining months * monthly payment) + GFMV (Balloon Payment)


That is the overall total of what you owe - lets call it A. It should reduce based on paying back early - its very unlikely to be more than this value!


Now take your new car price and figure out how much its worth - unfortunately even at 8 months old you could be looking at 20+% off the new price but it depends a lot on the car, current mileage etc etc... Lets call this B.


so if A==B (or close) its likely you would be able to hand the car back and walk away. If A is a lot more than B then you will owe them some money and if you have put a big deposit down to start then B might be more than A in which case you may get some money back!

There may be early payment charges so just be aware. These would have been detailed when taking out the contract.

I would assume that with a PCP you wouldn't have to pay the balloon payment as you have the option to hand it back anyway rather than pay this so I would assume what you would have to repay is the total monthly payments and any interest and early settlement payments (if applicable).

You would have to contact the PCP provider as it may be less and they may take the car back as it up to the point you paid but I would be surprised if they didn't ask for the total interst amount so as not be out of pocket.

I have never taken out a PCP contract to this is pure speculation.

seamus

Find out what it'll cost you to hand the car back and end the agreement early.

Then ask your employer to provide that amount as part of your relocation package.