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Topic starter
28/08/2012 6:56 pm
Hi,
I am looking to get some help regarding the above. Last November myself and my partner entered into a Protected Trust Deed, a couple of months prior to this (August) I had taken out a PCP on my car for 4 years, when setting up my Trust Deed I was allowed to keep the car as this was a necessity although my Trust Deed payments could not be less than my monthly payment for my car, this was all okay and my Trust Deed was protected. I now have a couple of questions regarding my PCP:-
Could I go back to the garage and tell them that I wanted to change the car for another model (larger as the car is too small), what would happen if I did this?
Would they:-
Agree to this as long as I kept the same monthly payments?
Would they run another credit check on me?
Would they try and take the car back if they now knew that I was in a Protected Trust Deed?
What penalties would I incur if I tried to give the car back early?
Any advice would be much appreciated.
Thanks
28/08/2012 8:11 pm
Hello sm1234 and welcome.
That's a new one in terms of the trust deed payment having to be higher than the PCP car payment. We've not heard that before.
Presumably there is a finance company involved that is separate from the garage itself?
They may well look to set up a new credit agreement if you changed cars and that would almost certainly involve a credit check.
You'll need to check your current finance agreement to see if there are any clauses regarding personal insolvency or trust deeds. Even if there are, they may not be enforced. We can probably tell you more if you let us know which firm it is.
You should probably also check your contract in terms of any penalties for handing back the car early.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
28/08/2012 9:24 pm
I would think you may find it difficult to get more finance, given the current climate. I have never heard of anything before regarding trust deed payments being higher than your car payments- new to me also ! The finance would probably have the right to take the car back if they wish, but you would need to check the agreement to see what it says. If they ask for the car back, you should be able to put any shortfall into the trust deed, however, that may leave you without a car at all!
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