If you are worried about your finances in the wake of the coronavirus pandemic, there is help and advice. Your financial company should offer you a three-month payment period for your auto financing contract. Also read our exclusive analysis of this payment leave initiative to decide if it`s right for you. Hello Stuart, I recently took a car in June 2014 on PCP over 60 months. My circumstances have changed and I have to be demoted to a vehicle that has literally half the value of that car. I think I had about 2k negative equity about when I signed the agreement. Would I be able to change cars without too much trouble? I always recommend that car buyers consider that they will not have equity at the end of the agreement, as this is usually the case most of the time. Put your expectations down and if you have them, then consider it a bonus. You simply pay your car in fixed monthly installments on a specific date and choose at the end of the life how the contract should be terminated. I arrive at the end of a 3 year PCP. I think the agreement should be concluded by the end of August. Have I heard about the financial company (Santander) or the dealer (Mazda) about my options? I want to exchange for a new car, but with another dealer.
Do I have to go directly to the new dealer? Good morning, Paul. You should be able to voluntarily terminate the contract and return the car, as you must have repaid more than 50% of the total amount to be paid. It will not affect their credit quality, as it is your legal right (read the related article for more information). You can terminate the contract voluntarily, but you must have paid 50% of the total amount to be paid – and you will be far from it after only 6 months, so you will need a large sum of money to reach the 50% point. Can you return the car at any time and conclude the contract or is there a fee to pay if you want to do it>? Hello Stuart, I currently have an Audi S3 on a 4 year PCP contract. My miles a year are 15k miles on the deal, but at 12 months of car ownership my mileage has far exceeded (23k miles) and will continue to be about 23k miles per year for the remaining 36 months.