I bought a car through pcp. I've now been offered a mobility car. Can I get out of the contract?

susieminis

I registered I recently bought a car through pcp. My first time doing so. Now I have been awarded a mobility car if I want. Can you get out of the contract. With the current financial situation I’m finding it difficult to make the payments 

poppy123456

Hi,

You haven't been awarded a mobility car because this isn't possible. If you have Enhanced mobility PIP or high rate DLA then it enables you to exchange that for a mobility car but you lose the mobility payments.

The good thing now is that you have your mobility payment to use for the PCP monthly payment. The mobility payment for Enhanced PIP is £250.20 every 4 weeks. If your PCP payment is less than this then i don't understand the financial difficulty. Most of the mobility cars available will take all of you mobility payments. Some also require you to pay an advance payment.

With regards to the PCP then you will need to speak to the loan company.

susieminis

Thanks I’ve already reassessed my income and it works out fine. I was just wondering but kinda knew what you were going to say.

OverlyAnxious

It will depend on the finance company.  Many will allow you to sell the car and then pay off the remaining finance.  In 'normal' times you'd generally be in negative equity, but with the used car market as it is right now, it would be worth checking your paperwork getting a valuation on your car and a settlement figure from the finance company.

Two things to consider though.  If you're on means tested benefits, getting a large payment from a car sale into your account could cause problems with capital limits, even if you then pay off the finance with it.  Secondly, new car wait times are currently many months for the majority of cars.  You could be waiting a long time unless you want something less desirable that's already been built and just hanging around at the back of a compound for a while!