Advice on my PCP and negative equity
Comments
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I've had a long think, and i believe the best option is to VT when i can, and deal with the consequences of not being able to get another car after. I dont think i'll go down the PCP route again, unless it is explained in greater detail to me. Unfortunately, the salesman was rather good at saying 'you can hand it back at the end' but never mentioned anything about negative equity until calling me.
I understand that i need to have paid 50% of the finance off to do this.
I managed to get access to my finance agreement online, and its all a bit confusing
£10,984.00 was the amount financed
But they're stating that the outstanding amount is £7,594.76, which is not right at all. in 33 months i've paid way more than £3500 on that car....Anyone know where this figure is drawn from?
So to get this right, if £10984 is the financed amount, i would have needed to have paid around £5500 to be able to VT?0 -
I would contact them again and ask for clarification.
The £7500 sounds like the total outstanding amount (which would include the balloon payment). As such, it doesn't sound too far off.
The VT clause should be specified in your finance agreement paperwork. The question of payments for damage and excess mileage on a VT are something of a grey area.
I would also be tempted to check the car's value with a car buying service before making a decision.0 -
domgreenslade wrote: »I've had a long think, and i believe the best option is to VT when i can, and deal with the consequences of not being able to get another car after. I dont think i'll go down the PCP route again, unless it is explained in greater detail to me. Unfortunately, the salesman was rather good at saying 'you can hand it back at the end' but never mentioned anything about negative equity until calling me.
I understand that i need to have paid 50% of the finance off to do this.
I managed to get access to my finance agreement online, and its all a bit confusing
£10,984.00 was the amount financed
But they're stating that the outstanding amount is £7,594.76, which is not right at all. in 33 months i've paid way more than £3500 on that car....Anyone know where this figure is drawn from?
So to get this right, if £10984 is the financed amount, i would have needed to have paid around £5500 to be able to VT?
Total amount financed does not equal total amount payable.
Total amount payable = total amount financed + deposit + interest + fees
You need to look for the total amount payable figure0 -
domgreenslade wrote: »
and deal with the consequences of not being able to get another car after.
Is that the very best of an idea, given you do 18,000 miles a year?
How are you going to pay for the cars replacement?
If its doing your job, why not drive on at it, set aside whatever you can afford per month to help cover the shortfall and see where the land lies at the end of the term. It could be just a matter of taking a loan out to buy the car - better the devil you know....0 -
domgreenslade wrote: »
I dont think i'll go down the PCP route again, unless it is explained in greater detail to me. Unfortunately, the salesman was rather good at saying 'you can hand it back at the end' but never mentioned anything about negative equity until calling me.
He wasnt lying there when he said all of that - keep the car to the end of term and hand it back with nothing further to pay. This was subject of course to you sticking to the 6,000 miles a year limit you set yourself, which you havent.
Bumping 18,000 miles PA on to a car thats inside an agreement to do 6,000 miles PA was always going to create a rather large hole somewhere along the line...0 -
Can you post the figures from that agreement?domgreenslade wrote: »I understand that i need to have paid 50% of the finance off to do this.
I managed to get access to my finance agreement online, and its all a bit confusing
£10,984.00 was the amount financed
But they're stating that the outstanding amount is £7,594.76, which is not right at all. in 33 months i've paid way more than £3500 on that car....Anyone know where this figure is drawn from?
So to get this right, if £10984 is the financed amount, i would have needed to have paid around £5500 to be able to VT?
How much deposit did you pay?
What is the monthly payment?
What is the APR?
What is the final payment, the balloon?
Are there other fees broken down on there?0 -
Read your agreement and statements from the finance co., all the information is there to see.domgreenslade wrote: »I've had a long think, and i believe the best option is to VT when i can, and deal with the consequences of not being able to get another car after. I dont think i'll go down the PCP route again, unless it is explained in greater detail to me. Unfortunately, the salesman was rather good at saying 'you can hand it back at the end' but never mentioned anything about negative equity until calling me.
I understand that i need to have paid 50% of the finance off to do this.
I managed to get access to my finance agreement online, and its all a bit confusing
£10,984.00 was the amount financed
But they're stating that the outstanding amount is £7,594.76, which is not right at all. in 33 months i've paid way more than £3500 on that car....Anyone know where this figure is drawn from?
So to get this right, if £10984 is the financed amount, i would have needed to have paid around £5500 to be able to VT?0 -
purpleparrotuk wrote: »Are you sure this is PCP and not PCH? PCP agreeements dont normally let you add miles on but not sure about RCI.
Yes I am sure
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The advice, whether bad or good, is to look at a bank loan, rather than PCP in the future.
Handing the car back when possible, is going to affect getting another PCP deal, and may potentially affect getting a bank loan too, so either way, i am stuck.
The alternative, is to get a bank loan to pay for the balloon payment. Or to go for a cheaper car, and roll over the negative equity.0 -
He wasnt lying there when he said all of that - keep the car to the end of term and hand it back with nothing further to pay. This was subject of course to you sticking to the 6,000 miles a year limit you set yourself, which you havent.
Bumping 18,000 miles PA on to a car thats inside an agreement to do 6,000 miles PA was always going to create a rather large hole somewhere along the line...
The quote from the salesman, at the time was 'If you go over your miles, you'll never pay the 8p per mile, so long as you hand the car back and get a new one at the end of the term'. I have, in an email, something to similar effect which does state 'unless there is negative equity, which we can roll over'. I have witnesses to both of these incidents, and neither time was 'negative equity' even spoken about.0
This discussion has been closed.
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