Repairs do not have to be done by the dealer, but they must use approved parts. They do not need to report the repair to the financial company, as they are only interested in the condition of the car. If it has been properly repaired, there should be no problem asserting the GMFV at the end of the agreement. What distinguishes PCP is that your monthly payments pay the depreciation of the car and not its total value over the life. Then, if you get to the end of your agreement, there is a final balloon payment that must be made if you want to keep the car. If you paid 50% or more of your HP financing, you can return your car. This is called the «voluntary termination agreement,» which means that the rest of the monthly payments are cancelled. Hello , great article, I just wanted to know the realistic options and consequences, for example, if you lose your job, while in the first year of a PCp agreement, you can get the car back, but pay some penalty, I take the credit score would be made, but what are the actual options available? Thank you, if you partially replace the car, it depends on the offer you receive for your car. If it is more than the billing figure, then the mileage is irrelevant and the trader will pay the financing. If the valuation is less than the billing figure, you either have to use the GMFV and pay the excess miles, or you accept the partial exchange offer and pay the negative equity based on the price money. Great article.
I currently have a PCP plan and I have 17 months of a 3 year contract with the left ball figurine. Struggle to maintain payments due to a change in circumstances. Can I abandon the car and get out of the agreement? Good morning, tmrinaldi. Remember that if you plan to pay for the car and keep it, you must have the means in place to be able to pay the PCP at the end of the life. If you go to a 48-month PCP with the intention of keeping the car, you can also look at other options like a 5-year HP, then there is no balloon to pay in the end.