If you are currently in a Personal Contract Purchase (PCP) agreement, you may be wondering if it is possible to change your car. The short answer is yes, you can change your car during a PCP agreement, but there are several factors you need to consider before doing so. In this article, we will explore some of the essential things you need to know before making any changes to your PCP agreement.
Why do you want to change your car?
Before embarking on any changes to your PCP agreement, you need to ask yourself why you want to change your car. Do you want a more expensive car, a bigger car, or a car with better features? Understanding your reason for changing your car can help you determine if it is the right decision for you.
How far along are you in your PCP agreement?
Another vital factor to consider is how far along you are in your PCP agreement. If you are early into your agreement, you may be subject to early termination fees, which can be costly. However, if you are nearing the end of your PCP agreement, it may be a good time to switch to a new car.
What is your current car worth?
It is crucial to know the current value of your car before making any changes to your PCP agreement. The value of your car will determine how much equity you have in the vehicle. If your car is worth more than the remaining payments on your PCP agreement, you may be able to use the equity to put towards a new car.
What are your options?
If you decide that changing your car during your PCP agreement is the right choice for you, there are several options available. You can trade-in your current car and use the equity towards a new car. Alternatively, you can sell your car privately and use the money to pay off the remaining balance on your PCP agreement. Finally, you can part-exchange your car with the dealer and use the equity to put towards a new car.
While it is possible to change your car during a PCP agreement, it is essential to consider the factors outlined in this article before doing so. Understanding your reason for changing your car, how far along you are in your agreement, and the current value of your car can help you make an informed decision about what to do. Ultimately, your decision should be based on what is best for you and your financial situation.