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  • FIRST POST
    • flyingastro
    • By flyingastro 25th Sep 17, 5:31 PM
    • 3Posts
    • 0Thanks
    flyingastro
    Another PCP Predicament
    • #1
    • 25th Sep 17, 5:31 PM
    Another PCP Predicament 25th Sep 17 at 5:31 PM
    I've read plenty over the past year about PCP terminations and the like and due to a change of circumstances I've found myself in this horrible position also. I'm basically looking for advice/confirmation of my worst suspicions unless there is any more financially savvy way to deal with my predicament.

    So:
    Car - Audi A1 2012 1.6 TDi, 94000 miles (purchased about 50000 miles, now at 94000, my agreement is for 10000 a year so well in excess as I purchased 2nd hand from Arnold Clark September 2015.)
    I basically said to the salesman, I am willing top pay a deposit of up to £1500 provided you can get my monthly payments to £150. I was 22 at the time and all by myself, and after negoitiation (I made £150 a strict limit) he got my the deal for £300 deposit and £149 a month. So I didn't question it and accepted the deal. I did ask EXPLICITLY - if I wanted to sell the car halfway through, could I get someone else to buy/take over the loan for me? "Sure, no problem" he said, Barclays Partner finance (owners of the car and loan) said this wasn't true.

    The total value of the loan was £8888 + £2140.38 interest.

    As it currently stands (today), the settlement figure is £6801.48.

    I am £2002 away from paying 50% of the Total Amount Payable (so VT'ing is probably not financially wise, especially with the excess mileage to be added on top - I've read most people saying that I won't have to pay it, but other stories are to the contrary).

    The change in circumstance - I had intended to let this run it's course then hand the car back or trade but things have changed.
    I was offered a prestigious PhD at University so would plan on leaving my full time employment in December 2017 (currently negotiating a part time contract with them) and start the full time PhD in Jan 2018. I NEEDED the car for my work as I commuted 80 miles A DAY (if I continue my part time work, I can get a lift in with colleagues for 2 days a month) whereas since I live next to the University, I will have NO USE for the car at all.

    So, options I've seen:
    VT the car - costs me £2002 plus all my excess mileage that they may decide to add on (and any damage - the car condition is very good with full servicing and MOT history - no major or minor issues on the MOT).
    SORN the car and keep paying the £149 a month until I reach 50% Total Amount Payable - this is approximately 13-14 month. So I'd effectively be paying £2000 anyway and have a car sitting on the driveway
    Get someone else to take over the payments - can't do this. Barclays Partner Finance say I must remain the registered keeper of the vehicle. So my insurance company says I must be on the insurance and the main policy holder must reside at my address (I live with 2 flatmates who don't drive or need a car).
    Sell the car privately after paying the settlement - the only option I can see left that is viable is pay the £6800 (closer to £6500 by December 2017) and try and sell it at £5500 maybe which still results in £1000 lost. The car has a brand new timing belt, pads and disks, and will be serviced with brand new tyres in November so I'm praying £5500 isn't impossible on a 2012 TDi Audi A1 with 95000 miles on it but I doubt it.
    I should point out, I've worked my !!! off since graduating a few years ago and saved £6500 - so I can pay the settlement in December (should have about £7500 saved by then) without taking out any loans but I WOULD ONLY INTEND TO PAY OFF THE SETTLEMENT IF SOMEONE MADE AN OFFER on the car. As I think it would be utterly stupid to throw ALL my savings into a car while I waited for it to be sold. So basically, someone offers £X which I will hopefully be happy with, I'd then pay the settlement figure with my own savings and try and lose as little money as possible in the sale - is this the wisest move?

    Can ANYONE see ANY other solution to my problem that sees me (someone who has NEVER defaulted on a payment, always paid all bills/payments on time and never been in debt) from being wonderfully screwed over by a change in circumstance that I can't really say no to (I'd regret not doing this PhD for the rest of my life)?
    Last edited by flyingastro; 25-09-2017 at 5:38 PM.
Page 1
    • co-op lover
    • By co-op lover 29th Sep 17, 8:56 PM
    • 148 Posts
    • 471 Thanks
    co-op lover
    • #2
    • 29th Sep 17, 8:56 PM
    • #2
    • 29th Sep 17, 8:56 PM
    You can sell the vehicle to a 3rd party we buy any car etc see if they are willing to bid nearer the settlement.
    • Kidder81
    • By Kidder81 29th Sep 17, 9:06 PM
    • 49 Posts
    • 55 Thanks
    Kidder81
    • #3
    • 29th Sep 17, 9:06 PM
    • #3
    • 29th Sep 17, 9:06 PM
    WBAC wouldn't be interested in such a high mileage car I wouldn't have thought. That mileage really limits your options as it scares a lot of people off. Plus it kills the value. I don't think you'd get anywhere near 5,500 for it personally.
    • co-op lover
    • By co-op lover 29th Sep 17, 9:09 PM
    • 148 Posts
    • 471 Thanks
    co-op lover
    • #4
    • 29th Sep 17, 9:09 PM
    • #4
    • 29th Sep 17, 9:09 PM
    You can sell it privately obviously the settlement needs paying first so if you can sell privately for the settlement that would be an option.
    • iolanthe07
    • By iolanthe07 30th Sep 17, 1:55 PM
    • 4,871 Posts
    • 4,603 Thanks
    iolanthe07
    • #5
    • 30th Sep 17, 1:55 PM
    • #5
    • 30th Sep 17, 1:55 PM
    I wouldn't be scared off by 96K miles for an Audi diesel, especially if you have a genuine full service record. £5,500 maybe a bit ambitious for a private sale, though.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • flyingastro
    • By flyingastro 1st Oct 17, 12:57 PM
    • 3 Posts
    • 0 Thanks
    flyingastro
    • #6
    • 1st Oct 17, 12:57 PM
    • #6
    • 1st Oct 17, 12:57 PM
    Yeah I understand people's concerns. Sadly, this is just a loss mitigation exercise for me at the moment. As it stands its about £6800 to pay off the car, dropping approx. £100 a month. I can stomach losing £1000 (hence hoping to get £5500).
    • Tarambor
    • By Tarambor 1st Oct 17, 3:09 PM
    • 1,319 Posts
    • 906 Thanks
    Tarambor
    • #7
    • 1st Oct 17, 3:09 PM
    • #7
    • 1st Oct 17, 3:09 PM
    A cursory look around the usual online places show that £5500 is actually a little on the low side for what they're going for. Even petrols are fetching around £1500 more than that with similar mileage.

    It would appear that the settlement figure you have been given is actually around 10-15% below its market value.
    • flyingastro
    • By flyingastro 1st Oct 17, 11:14 PM
    • 3 Posts
    • 0 Thanks
    flyingastro
    • #8
    • 1st Oct 17, 11:14 PM
    • #8
    • 1st Oct 17, 11:14 PM
    Well it's been up on Gumtree at 7500 and 7000 with absolutely 0 interest other than someone offering 5000 cash.
    • forgotmyname
    • By forgotmyname 2nd Oct 17, 5:21 AM
    • 25,859 Posts
    • 10,293 Thanks
    forgotmyname
    • #9
    • 2nd Oct 17, 5:21 AM
    • #9
    • 2nd Oct 17, 5:21 AM
    2 adverts? one at £7k and one at 7.5k? I always think duplicated adverts are likely to be scams and pass them by.

    People are going to look on autotrader and see cars starting at less than £6k from a dealer and want to pay less.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • Nebulous2
    • By Nebulous2 2nd Oct 17, 6:11 AM
    • 1,590 Posts
    • 969 Thanks
    Nebulous2
    Well it's been up on Gumtree at 7500 and 7000 with absolutely 0 interest other than someone offering 5000 cash.
    Originally posted by flyingastro
    Advertising used cars is remarkably price sensitive. In the old days of print advertising I've advertised a car with no response, dropped it £100, on a £3k car and it sold within hours.

    A £5k cash offer shows it will sell if it was a genuine offer.
    • Herzlos
    • By Herzlos 2nd Oct 17, 10:21 AM
    • 5,781 Posts
    • 5,254 Thanks
    Herzlos
    There's probably also an upper price on what people are willing to pay privately in cash. I've no idea where that sits, as I've never sold anything for more than £2k.

    WBAC wouldn't be interested in such a high mileage car I wouldn't have thought. That mileage really limits your options as it scares a lot of people off. Plus it kills the value. I don't think you'd get anywhere near 5,500 for it personally.
    Originally posted by Kidder81
    WBAC will take anything, they pay more for cars under 6 years old, so it's under 10 when the finance is cleared. Won't hurt to get a quote (and subtract about 10% for them finding stuff with it).

    Your best options are to sell it privately and clear the finance, or if you're paying nearly as much to run to the end of term as VT it, I'd just keep it for occasional use, shopping, days out etc unless you're paying a fortune in parking/insurance.
    Last edited by Herzlos; 02-10-2017 at 10:28 AM.
    • seatbeltnoob
    • By seatbeltnoob 2nd Oct 17, 11:46 AM
    • 218 Posts
    • 53 Thanks
    seatbeltnoob
    miles wont be much in an old car. But on newer cars they are scary, DPF, DMF, all sorts of cam issues on VAG diesels.

    Buying a car woth those mileages I would expect a few expensive repair bills. The going rate used on a car like this is £4500. The prices you're looking at are trade sellers.

    Private sellers sell for a lot less.
    • seatbeltnoob
    • By seatbeltnoob 2nd Oct 17, 11:48 AM
    • 218 Posts
    • 53 Thanks
    seatbeltnoob
    I wouldn;t SORN the car though, keep it and enjoy it. Being a phd means that you need to be frugal, nothing more moneysaving than a TDI to go on cheap trips around the country.
    • Daveahare99
    • By Daveahare99 2nd Oct 17, 12:57 PM
    • 49 Posts
    • 20 Thanks
    Daveahare99
    A VT on a car of that value is just not worth doing in my opinion.

    No matter how desperate your situation is (i'm not sure - but most people need a car anyway).

    Find a way to pay for it and buy it outright/keep it.

    Then you can sell or keep it.
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