Dilemma MG4 needs swapping

[retrobloke]

Hi All
Anyone else having financial problem sorting out a new car.
My dilemma is negative equity ( totally horrendous values) with 3 year old MG4 on PCP Finance. I cannot get a deal that is anywhere
Near what I am paying now.
It’s 3 years into a 4 year contract and not sure if I can hand it back?
Would leasing be anyway of getting out of the problem.
Any thoughts or help would be gratefully received
Neil

 

[gary333]

Hi All
Anyone else having financial problem sorting out a new car.
My dilemma is negative equity ( totally horrendous values) with 3 year old MG4 on PCP Finance. I cannot get a deal that is anywhere
Near what I am paying now.
It’s 3 years into a 4 year contract and not sure if I can hand it back?
Would leasing be anyway of getting out of the problem.
Any thoughts or help would be gratefully received
Neil

If it’s in negative equity why not just give it back when the PCP is up? You can voluntarily terminate a PCP agreement when half the balance is paid up which dependent on how you structured the finance could be around now.

Are you saying you can’t afford car and that’s why you are wanting to escape the finance, or something else?

 

[Tig170]

Hi All
Anyone else having financial problem sorting out a new car.
My dilemma is negative equity ( totally horrendous values) with 3 year old MG4 on PCP Finance. I cannot get a deal that is anywhere
Near what I am paying now.
It’s 3 years into a 4 year contract and not sure if I can hand it back?
Would leasing be anyway of getting out of the problem.
Any thoughts or help would be gratefully received
Neil

A PCP is a longterm car hire, in that they come with a Guaranteed Minimum Future Value at the end of the lease, its only a problem if you try to end the lease early. Remember than new MG4's are £10k cheaper than they were 3 years ago, also there are currently some cracking new EV's with excellent 2 year lease deals around £250 / month

 

[LenEV2016]

Hi All
Anyone else having financial problem sorting out a new car.
My dilemma is negative equity ( totally horrendous values) with 3 year old MG4 on PCP Finance. I cannot get a deal that is anywhere
Near what I am paying now.
It’s 3 years into a 4 year contract and not sure if I can hand it back?
Would leasing be anyway of getting out of the problem.
Any thoughts or help would be gratefully received
Neil

As has been said, you have two options keep it to the end of your PCP deal then hand it back (negative equity doesn't matter then)

Or go for a voluntary termination, you can do that when you reach the point of paying 50% of the total amount for the car (this is a total of the list price of the car plus the interest you are due)

 

[retrobloke]

Thanks for replies. So if I hand the car back at the end of the agreed PCP contract period, in my case 4 years, I will not have to pay anything including negative equity?

 

[LenEV2016]

Thanks for replies. So if I hand the car back at the end of the agreed PCP contract period, in my case 4 years, I will not have to pay anything including negative equity?

As long as it's not damaged or over the agreed mileage

 

[ReintjeWA]

If you want be sure about what your options are you should probably read what it says in the contract you signed.

 

[Chrisdriving]

Thanks for replies. So if I hand the car back at the end of the agreed PCP contract period, in my case 4 years, I will not have to pay anything including negative equity?

Correct simply hand it back, they would bill you for any excess miles and if there is any damage to the car beyond acceptable wear and tear, usually based on BVLRA guiines which you can look up.

 

[retrobloke]

Thanks again everyone.