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  • FIRST POST
    • Andyboy555
    • By Andyboy555 6th Oct 17, 8:09 PM
    • 1Posts
    • 0Thanks
    Andyboy555
    Barclays Car Finance Query
    • #1
    • 6th Oct 17, 8:09 PM
    Barclays Car Finance Query 6th Oct 17 at 8:09 PM
    Hi everyone, Iím hoping someone a little more savvy can explain all this to me.

    2 years ago I ďpurchasedĒ a BMW on what I thought was a PCP scheme, through a main dealer.

    Now, Iím almost at the end of the deal, and started to look around.
    The dealer I visited ran an HPI and turns out there is nothing against the car.
    So kindly they called Barclays and it turns out itís a personal loan, which Iím presuming is secured on the car somehow.

    Now I have a settlement figure, and a GFV.
    My question is, considering itís looking like a personal loan am I free to sell/ trade the car?
    I (perhaps wrongly) presumed the GFV would be my balloon payment but that and my settlement are completely different.

    Numbers are as follows.
    2 year PCP on a 6 month old model
    RRP 19,990
    Deposit 7800 (roughly)
    24 x 148 monthly payments.
    GFV 14,600
    Settlement 11;000

    So does that mean if I want to keep the car Iím only paying the 11,000?
    Iíve been offered 13,000 as a trade in ( non bmw dealer)

    Thanks in advance

    Andy
Page 1
    • lopsyfa
    • By lopsyfa 7th Oct 17, 7:42 AM
    • 52 Posts
    • 30 Thanks
    lopsyfa
    • #2
    • 7th Oct 17, 7:42 AM
    • #2
    • 7th Oct 17, 7:42 AM
    Yes, you can pay the 11000 and the car is yours.
    • Nebulous2
    • By Nebulous2 7th Oct 17, 12:14 PM
    • 1,648 Posts
    • 1,002 Thanks
    Nebulous2
    • #3
    • 7th Oct 17, 12:14 PM
    • #3
    • 7th Oct 17, 12:14 PM
    I don't understand this. It seems to be a personal loan, with part-repayment and part interest only, or a personal loan with a longer timescale, which you can repay now with an £11000 settlement figure.

    What relevance does the guaranteed future value have?
    • Nearlyold
    • By Nearlyold 7th Oct 17, 3:32 PM
    • 984 Posts
    • 817 Thanks
    Nearlyold
    • #4
    • 7th Oct 17, 3:32 PM
    • #4
    • 7th Oct 17, 3:32 PM
    With HP based PCP the car belongs to the finance company until you pay the balloon payment at the end or if you want to hand the car back it goes back to the finance company (as it already belongs to them) and the finance company guarantee the value of the car so that you have no more to pay.

    With Personal Loan based "PCP" arrangements you own the car from outset with an option in the contract to require the finance company to buy the car back at the end of the agreement (when the balloon would otherwise be due) for the GMFV.

    However I am puzzled by the OPs figures like you as I can't see how the settlement figure is less than the GMFV unless perhaps the OP has made previous overpayments or maybe a quirk of the rather large deposit.

    The personal loan based PCP is usually not something the customer applies for but rather something the finance company chooses to offer for whatever reason (they might be concerned about the VT risk for example with a heavily depreciated car being handed back with monster miles).
    • Mobeer
    • By Mobeer 7th Oct 17, 6:04 PM
    • 1,711 Posts
    • 4,393 Thanks
    Mobeer
    • #5
    • 7th Oct 17, 6:04 PM
    • #5
    • 7th Oct 17, 6:04 PM
    OP, are you sure the GFV value you quote is not the total amount payable over the term of the deal?

    Doing a quick calculation I can get similar figures like:

    RRP 19,900
    Deposit 7,800
    Amount to finance 12,100
    Final Payment 11,000
    24 months @ 147/month
    APR 10.49%
    Total payable 14,528

    Not quite the same as you have but maybe closer than your original post?
    • Nearlyold
    • By Nearlyold 7th Oct 17, 7:11 PM
    • 984 Posts
    • 817 Thanks
    Nearlyold
    • #6
    • 7th Oct 17, 7:11 PM
    • #6
    • 7th Oct 17, 7:11 PM
    Usually the Total Amount Payable includes the deposit as the calculation is normally the Price of the Goods plus interest plus fees? Of course as the OP has not come back it could just be a mistype.
    • Nebulous2
    • By Nebulous2 7th Oct 17, 9:22 PM
    • 1,648 Posts
    • 1,002 Thanks
    Nebulous2
    • #7
    • 7th Oct 17, 9:22 PM
    • #7
    • 7th Oct 17, 9:22 PM
    I'm sure we are missing key information. Most cars lose 50% plus in first 3 years. Giving a GFV on a 6 months old car of close to 3/4s of the purchase price after 2 years seems unlikely.

    Maybe I should be looking at a used BMW for my next car!
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