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  • FIRST POST
    • mheuter
    • By mheuter 18th Jun 17, 7:52 PM
    • 1Posts
    • 0Thanks
    mheuter
    PCP - balloon payment or return to dealer?
    • #1
    • 18th Jun 17, 7:52 PM
    PCP - balloon payment or return to dealer? 18th Jun 17 at 7:52 PM
    Hi, not sure whether this is the right place. I am trying to work out what to do with my PCP financed car at the end of the finance period. I have a 2012 VW Polo Diesel with now 65,000 miles, which I have had since October 15. I will have paid £1,000 down payment and 24 x £176 mostly payments, so total commitment at the end of the period will be £5,224. The ballon payment is £4,712, similar to buying a model on the open market with the same age/mileage etc. The original price would have been £8,500 at my local VW dealer.

    Question I am trying to figure out - give the car back and buy or lease another one or buy it at the ballon cost??? My gut instinct is that I would have bought an expensive car (i.e. £5,224+£4,712, almost £10k ... Anyone can unscramble my brain on this?

    thanks,

    Martin
Page 1
    • boliston
    • By boliston 18th Jun 17, 8:05 PM
    • 2,453 Posts
    • 2,019 Thanks
    boliston
    • #2
    • 18th Jun 17, 8:05 PM
    • #2
    • 18th Jun 17, 8:05 PM
    They normally want you to PCP another car as it makes them far far more money so if you are happy with the car and it runs well I would go with the final payment to own it.
    • custardy
    • By custardy 18th Jun 17, 8:15 PM
    • 32,770 Posts
    • 27,502 Thanks
    custardy
    • #3
    • 18th Jun 17, 8:15 PM
    • #3
    • 18th Jun 17, 8:15 PM
    Hi, not sure whether this is the right place. I am trying to work out what to do with my PCP financed car at the end of the finance period. I have a 2012 VW Polo Diesel with now 65,000 miles, which I have had since October 15. I will have paid £1,000 down payment and 24 x £176 mostly payments, so total commitment at the end of the period will be £5,224. The ballon payment is £4,712, similar to buying a model on the open market with the same age/mileage etc. The original price would have been £8,500 at my local VW dealer.

    Question I am trying to figure out - give the car back and buy or lease another one or buy it at the ballon cost??? My gut instinct is that I would have bought an expensive car (i.e. £5,224+£4,712, almost £10k ... Anyone can unscramble my brain on this?

    thanks,

    Martin
    Originally posted by mheuter
    if you had bought on straight finance it would have been more than the £8.5K window price.
    So keep that in mind when comparing.
    • facade
    • By facade 18th Jun 17, 8:15 PM
    • 2,936 Posts
    • 1,497 Thanks
    facade
    • #4
    • 18th Jun 17, 8:15 PM
    • #4
    • 18th Jun 17, 8:15 PM
    The ballon payment is £4,712, similar to buying a model on the open market with the same age/mileage etc. The original price would have been £8,500 at my local VW dealer.
    Originally posted by mheuter
    If you like it and it is running well, keep it.

    Yes you will have paid £10k for a car worth £8.5k, but that is because of the finance package that you used.

    Now you can keep the car for what it is worth today, or not.

    Forget the money you have already put in, it is lost anyway.
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science )
    • boliston
    • By boliston 18th Jun 17, 9:20 PM
    • 2,453 Posts
    • 2,019 Thanks
    boliston
    • #5
    • 18th Jun 17, 9:20 PM
    • #5
    • 18th Jun 17, 9:20 PM
    Also better a car you know than the same car you dont know
    • LandyAndy
    • By LandyAndy 19th Jun 17, 12:28 PM
    • 23,997 Posts
    • 50,758 Thanks
    LandyAndy
    • #6
    • 19th Jun 17, 12:28 PM
    • #6
    • 19th Jun 17, 12:28 PM
    Have to agree with posters above. You have the chance to buy a second hand car that you know the history of, and are happy with, for a fair price. Your choice is simply whether to do that or buy a different car. All the money you have paid so far is a sunk cost and you should disregard it in your decision making.
    • Tarambor
    • By Tarambor 19th Jun 17, 7:53 PM
    • 1,763 Posts
    • 1,206 Thanks
    Tarambor
    • #7
    • 19th Jun 17, 7:53 PM
    • #7
    • 19th Jun 17, 7:53 PM
    If you want the cheapest option it is to keep the car you have. Start again on a new PCP and you're paying for the initial 3 years depreciation on a new car and the first three years are the ones that see the largest annual hits for depreciation.

    • LandyAndy
    • By LandyAndy 20th Jun 17, 9:00 AM
    • 23,997 Posts
    • 50,758 Thanks
    LandyAndy
    • #8
    • 20th Jun 17, 9:00 AM
    • #8
    • 20th Jun 17, 9:00 AM
    Hi, not sure whether this is the right place. I am trying to work out what to do with my PCP financed car at the end of the finance period. I have a 2012 VW Polo Diesel with now 65,000 miles, which I have had since October 15.
    Originally posted by mheuter
    If you want the cheapest option it is to keep the car you have. Start again on a new PCP and you're paying for the initial 3 years depreciation on a new car and the first three years are the ones that see the largest annual hits for depreciation.
    Originally posted by Tarambor

    The OP bought at 3 years old on a PCP.
    • Zola.
    • By Zola. 20th Jun 17, 12:21 PM
    • 1,155 Posts
    • 441 Thanks
    Zola.
    • #9
    • 20th Jun 17, 12:21 PM
    • #9
    • 20th Jun 17, 12:21 PM
    That's the thing about PCP I just dont like.

    You have a nice car, you get used to the payments to an extent, then if you want to keep it your loyalties are tested with such a large amount, long after the novelty has worn off.
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