Can I get out of my PCP lease to get a van?

Hi, I have a car out on a PCP lease and it is about 15 months old, but I am starting my own business and need to trade the car for a van, but the settlement on the car is €18,500. I have around €5,300 paid though the dealer is telling me that a significant deposit would be required to come out of the PCP, but the van is around €20,000. Where do I stand?

Thanks for your time

Paudie Brown (Cork)

Aug 2014 Filed under: finance

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Expert answer

Hi Paudie,

OK, you need to sit down with your PCP provider and find out exactly where you stand. PCPs are not all the same - some allow you to use the equity built up over and above the minimum agreed used value (assuming there is any) to act as your deposit for the next car, others require you to save for the next deposit while paying the repayments on the existing car. You need to find out exactly what your plan allows you to do. 

It would also be well worth your while shopping around a bit. If the dealer you bought the car from isn't willing to give you a decent exit from the PCP to move you to a van, try somewhere else. Plenty of van makers have plenty of special offers and deals going and you may well be able to get yourself into a better situation elsewhere. Ring around, walk around and ask around would be my advice.

Please do let us know how you get on

Neil Briscoe - Complete Car Adviser
@neilmbriscoe