What If My PCP Agreement Is Due To End During Lockdown?
There are lots of ways to finance a car, and one of the most popular is PCP – or Personal Contract Purchase. PCP involves agreeing an annual mileage, paying a deposit, followed by fixed monthly payments over an agreed period of time.
Once you reach the end of that agreed term, you have three options:
- Make one final payment (known as the balloon payment, or Guaranteed Minimum Future Value), and take full ownership of the car. The balloon payment / GMFV is set out at the very start of the agreement, so if this is something you’d like to do, you have plenty of time to plan - putting a little extra aside each month if you need to.
- Return the car to the dealership and leave it at that.
- Return the car, and use any value above the GMFV (positive equity) as a deposit for a new car.
So what’s changed since the outbreak of COVID-19?
Making the balloon payment:
If you’d like to own the car outright, your finance company will have the facility to take your GMFV payment securely online. Contact them first, and they will point you in the right direction. We’ve listed our finance partner contact details below.
Returning the car:
The COVID-19 lockdown means that returning vehicles to dealerships isn’t physically possible at the moment. With that in mind, we would recommend contacting your finance provider to see how they can help. It may be that they can roll the agreement over on a month-by-month basis or offer a temporary payment freeze, but this will vary from lender to lender.
The good news is that if you’d like to order your next car, you don’t need to wait! You can place your order online right now, and we’ll hang onto your new car for you until it’s safe to arrange for delivery/collection.
Discuss payment options on your current agreement:
After speaking to our finance partners, there isn’t a one size fits all solution for this at the moment. Each company seems to be offering something slightly different, so our recommendation here would be to contact your finance company to see what options there are available to you.
If you’re struggling with your payments, reach out as soon as possible - honesty really is the best policy, and a lot of people will be in similar situations at the moment. As with a lot of businesses, they may be operating with skeleton staff so it may take a little time to put something in place. Please don’t wait - if you miss payments it could cause you more financial problems further down the road.
If your personal circumstances have changed, and you’re no longer able to make payments at all, it is possible to end your finance agreement earlier than was originally agreed. If you have already paid off half of what you owe (including interest, fees and the balloon payment), and the vehicle has fair usage, you can activate something called a voluntary termination. In fact, even if you haven’t quite reached the qualifying halfway mark, you can discuss with the finance company a plan to make up the difference and still terminate the agreement. Please remember though – this will leave you without access to a car, and you’ll have no equity to invest as a deposit for another car.
Finance company contact details
|Lender||Company Contact Number||Finance Company Contact Email Address|
|VWFS Audi||0370 010 2007||[email protected]|
|VWFS SEAT||0370 333 4446||[email protected]|
|VWFS SKODA||0370 333 4449||[email protected]|
|VWFS VW||0370 010 2022||[email protected]|
|Black Horse Finance||0344 824 8888||https://customerportal.blackhorse.co.uk/|
|MotoNovo||0333 200 0030||https://customer.motonovofinance.com/contact-us|
|BNP Paribas||0371 5121983|
|Jaguar Financial Services||0800 302 9114|
|Land Rover Financial Services||0344 824 4732|
|Jeep Financial Services||0333 2075582||[email protected]|
|Mercedes-Benz Finance||0370 847 0700||[email protected]|
|Mercedes-Benz Commercial Vehicles||0370 847 0700||[email protected]|
|Ford Motor Credit||03457 125490||https://www.ford.co.uk/finance/support/contact-us|
|Mazda Finance||0800 085 1759||[email protected]|
|Vauxhall Finance||0344 871 2222||[email protected]|
|Honda Finance||0345 128 8908||[email protected]|
|Toyota Financial Services||0344 701 6202||[email protected]|
|Santander Consumer Finance||0800 085 1759||[email protected]|
|Alphera||0370 5050 125||[email protected]|
|Northridge||0800 917 0931||[email protected]|
|Hyundai Car Finance||0800 085 1954||[email protected]|
|Citroen / Peugeot Finance||0345 313 3805||www.psa-finance.co.uk|
|Renault Finance||0333 009 0230||[email protected]|
|Nissan Finance||0333 2000 002||[email protected]|
* All information correct at time of publishing but may change to reflect this ever-changing situation.
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