Pcp in event of death?

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jallen
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Pcp in event of death?

Post by jallen » Fri Oct 27, 2017 2:16 pm

Got asked the following this morning and I don’t have my old paperwork to check...

What happens to a pcp agreement in the event of the person who took out the agreement dying?

Assuming no relative wanted to take on the car, could it just go back as if it were a voluntary termination?

Is this situation provided for in the paperwork, or is it something of a grey area?

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Ezzra
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Re: Pcp in event of death?

Post by Ezzra » Fri Oct 27, 2017 2:18 pm

The decreased estate would be responsible. :)
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Re: Pcp in event of death?

Post by jallen » Fri Oct 27, 2017 2:49 pm

Thanks. Is that set out in the paperwork?

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Re: Pcp in event of death?

Post by Ezzra » Fri Oct 27, 2017 3:02 pm

jallen wrote:
Fri Oct 27, 2017 2:49 pm
Thanks. Is that set out in the paperwork?
I don't know about the paperwork. It's the law of the land :)
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Re: Pcp in event of death?

Post by .Griff. » Fri Oct 27, 2017 3:12 pm

Depends how far into the contract.

If half the amount had been repaid at the time of death then it could just be handed back and the contract terminated under "halves and thirds" rule.
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Re: Pcp in event of death?

Post by jallen » Fri Oct 27, 2017 4:01 pm

Thanks. I’m aware of the standard VT provision but was interested specifically in what would happen earlier in an agreement than when that would be an option.

If it would be a case of a remaining relative having to take responsibility for selling the car on, and quite likely leaving them out of pocket if too early in the deal to voluntarily terminate under the normal rules, then I shall have to pass that info on as it is.

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Re: Pcp in event of death?

Post by ihadablackdog » Fri Oct 27, 2017 6:52 pm

Ask the finance company?

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Re: Pcp in event of death?

Post by ASB1960 » Fri Oct 27, 2017 7:20 pm

Assuming the pcp contains no provision to forgive any debt on death then it is part of the estate. The car cant be passed on to anybody else until the debt is settled.

Same as all the other secured debts.

Obviously whoever is inheriting the car could choose to take on the debt (in the event the finance co would allow it) but neither of these has to happen.
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Re: Pcp in event of death?

Post by jallen » Fri Oct 27, 2017 8:56 pm

The existence of a provision to forgive debt on death is what I’m interested in. I don’t know if PCP contracts typically make reference to that or not.

Now I’ve started thinking about it I wonder to what extent the situation is similar if on a pch plan.


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Re: Pcp in event of death?

Post by davidv111 » Fri Oct 27, 2017 9:53 pm

How come your thinking about this. Quite an unusual question
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Re: Pcp in event of death?

Post by ASB1960 » Sat Oct 28, 2017 2:09 pm

jallen wrote:
Fri Oct 27, 2017 8:56 pm
The existence of a provision to forgive debt on death is what I’m interested in. I don’t know if PCP contracts typically make reference to that or not. Image

Now I’ve started thinking about it I wonder to what extent the situation is similar if on a pch plan.


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It would be unusual (but not impossible) for there to be provision. Any provision would be PPI. Not that common these days.

They may forgive as a goodwill gesture and simply take the car back. But i wouldnt rely on it.

E.g. http://m.bmw.co.uk/en_gb/finance/existi ... -agreement

The situation would be similar on PCH.

Both situations are an early termination and governed by what is in the contract (assuming the estate dont wish to continue the contract).
M135i 3 door, auto, mineral grey/oyster - black, bus nav, black panel, adaptive, driver comfort. Arrived 24th June 2014.

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