Nearing the end of pcp

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k1984
k1984 Posts: 54 Forumite
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edited 24 February 2017 at 5:38PM in Loans
Hello,

Has anyone had any last experience of something similar...

I purchased a Mercedes a class in oct 2014 on a 3 year pcp deal. £320 a month plus lump sum at the end. Now for the first 18 months I made the payments on time but had a few financial issues the last while where I missed payments but always made them up the next month. Checking my credit file it shows 4 late/missed payments. My credit score isn't the best now either bordering on poor/fair.

Now my pcp deal comes to an end in October and I'm wondering what happens next. Of course I know I can hand the car back or trade it in or pay off the lump sum etc but those aren't really options as 1) if I trade in or hand the car back I'd need to find a car elsewhere and on different finance and I'd struggle for that. Likewise obtaining a loan to pay off the lump sum would also be hard to obtain.

I phoned Mercedes finance who said they wouldn't be able to help me with advice until the time came to the end of the agreement.

Does anyone know if the finance company would then extend the agreement for another 3 years for instance to pay off the lump sum? Or would they be inclined to just say 'tuff' hand back or sell it t get a profit etc.

Financially things are improving and are back on track so should have 10 months of no late payments etc come October. Just looking to plan ahead

Thanks

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  • Nearlyold
    Nearlyold Posts: 2,288 Forumite
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    At the end of the PCP term the finance company don't usually extend the loan as such but rather arrange a new loan to cover the final payment due so you can keep the car. Whether or not Mercedes or any other finance company would do that for you would depend on their assessment of your credit worthiness at the time and/or the security offered by the car. Why not contact the Mercedes dealer to see what they can do for you in terms of options that may be available BUT be careful and don't make any rushed decisions as they will almost certainly see it as an opportunity to make some money off you.
  • chanz4
    chanz4 Posts: 10,894 Forumite
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    doesn't there pcp deals say you will never own the car, maybe wrong but seen that in a few adverts of theres
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Grumpy_Old_Duffer
    Grumpy_Old_Duffer Posts: 689 Forumite
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    I'm told, don't know if it's true or not, Banks are offering PCP finance now.
    It has taken about 4,500,000,000 (4.5 billion) years for the Earth to form as it is now .........
    and it'll only take about another 100 years for mankind to really **** it up!!!!
  • Nearlyold
    Nearlyold Posts: 2,288 Forumite
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    chanz4 wrote: »
    doesn't there pcp deals say you will never own the car, maybe wrong but seen that in a few adverts of theres

    The ones where you never own the car are Personal Contract Hire not PCP
  • chanz4
    chanz4 Posts: 10,894 Forumite
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    Halifax and Santander do pcp
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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