If you sell the car at this point, the proceeds are unlikely to cover your debt and you'll need to make up the difference. Unless you put down a large deposit, this is likely to mean that you owe far more than the car is worth in the early stages of the finance agreement. Whether selling your PCP car makes sense or not will depend on how much you still owe on your finance agreement (including the optional final payment), and the current value of your car.Ī car's value tends to drop steeply as soon as you purchase it, whether it's a new or used model. In fact, earlier on in a contract, the vehicle is likely to be worth far less than the remaining balance, meaning that even if you were to sell it, you're likely to still owe the finance company a substantial amount - potentially amounting to several thousand pounds. Invariably, however, most, if not all of the money from the sale or part exchange - especially earlier on in a contract - goes to the lender to repay what’s owed. Alternatively, you could part-exchange the vehicle for another one using any value in the car above the remaining finance balance - known as equity - to put towards the deposit on your next car. However, you are often able to sell the car with the agreement of the lender. This remains the case at the end of the agreement: until you have made the final balloon payment to buy the car, it’s not yours to sell.
![oru sale of pclp oru sale of pclp](https://www.oru.it/files/assistenza.jpg)
Until you've made the optional final payment to settle the PCP agreement, however, the car belongs to the lender, so you can’t simply advertise the vehicle and sell it whenever you like.
#Oru sale of pclp drivers
There are also plenty of drivers who find that they need to hand the car back early, perhaps to upgrade to a different model, or if payments are proving hard to meet. Many make their payments as planned and then return the car or buy it at the end of the agreement - some want to sell the car at this point.
![oru sale of pclp oru sale of pclp](https://images.finncdn.no/dynamic/155h/2021/9/vertical-0/06/8/230/977/108_1946381874.jpg)
Millions of cars on the road today are being paid for in monthly instalments, by drivers who like the affordability and flexibility of PCP finance. The low monthly payments of Personal Contract Purchase (PCP) have made it the most popular type of car finance in Britain.