PCP

A question about : PCP

I am wondering if somebody in the know could offer us some advise.

My partner has been offered a new job and as part of this job would receive a company car.

He got a Fiat Punto on a PCP in March 2013. This was to be purchased over 48 months with a balloon payment at the end. At the time of purchase he was told he could bring it back at any time and just hand it over with the keys.

Obviously it was never going to be that easy.

He has rang the finance company and they have told him to do this he would need to pay Ј1700 to bring it up to 50% of the payments due. We assumed as he is almost half way through his 48 month contract he would have hit the 50% mark but we didn't account for his balloon payment.

Are there any other ways out of this? This is all very new to us and we had always planned to keep the car but obviously the situation has changed.

Thanks in advance!

Best answers:

• How much is car worth? If worth more than the finance, then sell it and pay it off at point of exchange.
  Does he have to take the co. car?
• Can he ask the new employer if they will pay a car allowance instead - perhaps at least until he reaches the point that he can VT the car?
• Unfortunately he can't opt out of the company car, there is no alternative allowance.
  He owes Ј7000 and similar cars seem to be selling for 6.5kish.
  I think we are stuck!
• Do you both have individual cars? If not, you could continue to pay the monthly finance on the PCP until you hit the 50% mark, and you could use that car whilst he uses the new company car or vice versa.
• Good suggestion but it wouldn't work for us as I have a car that is fully paid for!
• I've purchased a car privately with finance owing. I paid approx Ј4000 for the car and the seller owed approx Ј5000. He wasn't too bothered about making a profit as it was part of his divorce settlement !
  How it worked for us was, the seller showed me his settlement papers, we called the finance company, I paid Ј4000 to the company over the phone with my debit card, the guy I bought it from paid the remaining balance over the phone with his card, and the finance company confirmed on the phone (and really quickly by email) to us that it was clear from any finance with immediate effect. We both got reference numbers for our payments. The seller then followed this up with an email to me less than a week later, attaching a copy of the written confirmation of his finance settlement when he got it.
  It can be done, like someone above has said, just needs a little legwork.