[Ericsson]

Ive had my car for 6 months now on PCP. As much as I like it, its a bit small so I'm thinking of possibly changing at the end of year 2 or possibly before.

As I'm on PCP I assume there will be a large fee if I'm looking to hand back at the end of year 2? Or is it even possible?
Does anyone know if its possible to change to hire purchase? This may be a better option in the long run if possible?

Am I better speaking to GMAC or the dealer about this?

 

[Matthew]

It's possible, you can hand your car back a week after you bought it if you really want.. however you're right, you'll be in negative equity (its quite hard to get your head around) however meaning you've made a loss hence why PCP is about 3 years long seen as at that point you'll have got the stable value.

While you're on it I don't think you can change to Hire Purchase as you've already agreed via PCP. You may wish to speak to your dealer however if you hand it back before; like said you'll have made a loss.

 

[Jarviser]

There will be a contract buyout cost, I'm guessing the remaining payments less VAT plus admin fee. GMAC will tell you.

 

[LimeyUK]

There will be a contract buyout cost, I'm guessing the remaining payments less VAT plus admin fee. GMAC will tell you.

I suspect they'll remove any interest too.

 

[spongebob]

I can share my experience.

I bought a Hyundai i20 in September 2013, on a 3-year PCP.

Nice car, but not built that well, and I started to get itchy feet halfway in, earlier this year. I know someone with a new i10 (new one much better than my old i20), and spoke to the dealer about swapping over.

The upshot was, as I was at around the halfway point, I was at the stage when the value of the car was the same as what was outstanding on the PCP. However, the deal on the i10 was poor, and I walked.

Friend of mine bought a new Corsa, and with all the discounts, it looked like a good bet. I went in and spoke to the dealer, and to trade in, I was offered essentially what was again the closing figure on my Hyundai PCP. I managed to trade in, and now pay less per month than before, and I didn't put a deposit down either. Result!

Upshot of the story is supposed to be, that around halfway through your 3-year deal, you could well be at a point where your settlement figure matches the cars value, so you can either walk, or trade in and start again.

I think you can get the figure through the finance website, so you can find out what you owe before you speak to a dealer to see what they offer you.

I did some reading online before going in, and it is quite common to go early. In fact, some do actually just walk, and buy something else instead. As long as you don't owe, apparently you can. There are some interesting stories out there that made me do it. Saves buying a service pack as well, as you'll only have 1 before you get rid!