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  • FIRST POST
    • fireblade28
    • By fireblade28 5th Oct 17, 2:53 PM
    • 143Posts
    • 104Thanks
    fireblade28
    Selling a car you just bought on finance
    • #1
    • 5th Oct 17, 2:53 PM
    Selling a car you just bought on finance 5th Oct 17 at 2:53 PM
    I have a predicament I just bought a new car like 2 months ago but it looks like I may have to move and thereís not much point having a car in central London.

    I have the money to pay of the finance agreement if required but will I lose out a lot of money due to interest or do you not have to pay that? Itís on PCP.

    I figure I can just buy the car and then sell it but I may keep it if Iím gonna lose out like 10k on interest
Page 1
    • Frozen_up_north
    • By Frozen_up_north 5th Oct 17, 2:59 PM
    • 1,310 Posts
    • 623 Thanks
    Frozen_up_north
    • #2
    • 5th Oct 17, 2:59 PM
    • #2
    • 5th Oct 17, 2:59 PM
    You need to ask the finance company for a settlement figure, they issue them all the time, mostly when someone trades in their car for a new one.
    • neilmcl
    • By neilmcl 5th Oct 17, 3:10 PM
    • 10,307 Posts
    • 7,227 Thanks
    neilmcl
    • #3
    • 5th Oct 17, 3:10 PM
    • #3
    • 5th Oct 17, 3:10 PM
    I have a predicament I just bought a new car like 2 months ago but it looks like I may have to move and thereís not much point having a car in central London.

    I have the money to pay of the finance agreement if required but will I lose out a lot of money due to interest or do you not have to pay that? Itís on PCP.

    I figure I can just buy the car and then sell it but I may keep it if Iím gonna lose out like 10k on interest
    Originally posted by fireblade28
    If you have the money then settle the finance and keep the car. The only interest you'll pay is for the 2 months you've owned the car, which I imagine will not be much.
    • AnotherJoe
    • By AnotherJoe 5th Oct 17, 5:37 PM
    • 7,681 Posts
    • 8,291 Thanks
    AnotherJoe
    • #4
    • 5th Oct 17, 5:37 PM
    • #4
    • 5th Oct 17, 5:37 PM
    I've done this a couple of times (settling the finance) after a few weeks just to take advantage of the finance contributions they offer. As advised, just ask them for a settlement figure and how you can pay, ISTR last time they just took it via the same DD number, so i just had to make sure i had the money in my account.

    There's nothing to lose out on regards settling*, indeed you'll gain as you wont be paying interest.

    Expect to take a big hit on depreciation when you sell it.

    * do ask them for the settlement figure, dont say you want to cancel it. Thats different.
    • bigadaj
    • By bigadaj 7th Oct 17, 5:40 AM
    • 10,803 Posts
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    bigadaj
    • #5
    • 7th Oct 17, 5:40 AM
    • #5
    • 7th Oct 17, 5:40 AM
    Settling the finance in the car is probably not going to be very expensive, certainly compared to the depreciation on selling teh car after a couple of months.
    • footyguy
    • By footyguy 7th Oct 17, 1:09 PM
    • 3,902 Posts
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    footyguy
    • #6
    • 7th Oct 17, 1:09 PM
    • #6
    • 7th Oct 17, 1:09 PM
    I have a predicament I just bought a new car like 2 months ago but it looks like I may have to move and thereís not much point having a car in central London.

    I have the money to pay of the finance agreement if required but will I lose out a lot of money due to interest or do you not have to pay that? Itís on PCP.

    I figure I can just buy the car and then sell it but I may keep it if Iím gonna lose out like 10k on interest
    Originally posted by fireblade28
    Can I ask, why did you recently take out the finance agreement if you had the cash to buy the car outright?

    You fear £10k worth of interest (I hope not, even over the whole term) but you are not going to earn that in any savings account.
    • AnotherJoe
    • By AnotherJoe 7th Oct 17, 4:43 PM
    • 7,681 Posts
    • 8,291 Thanks
    AnotherJoe
    • #7
    • 7th Oct 17, 4:43 PM
    • #7
    • 7th Oct 17, 4:43 PM
    Can I ask, why did you recently take out the finance agreement if you had the cash to buy the car outright?

    You fear £10k worth of interest (I hope not, even over the whole term) but you are not going to earn that in any savings account.
    Originally posted by footyguy
    I've done it because I got £2 or £3k extra for taking out their finance. Settle after a couple of weeks.
    • footyguy
    • By footyguy 7th Oct 17, 6:01 PM
    • 3,902 Posts
    • 1,550 Thanks
    footyguy
    • #8
    • 7th Oct 17, 6:01 PM
    • #8
    • 7th Oct 17, 6:01 PM
    I've done it because I got £2 or £3k extra for taking out their finance. Settle after a couple of weeks.
    Originally posted by AnotherJoe
    So you presumably already knew you were not going to get clobbered by £10k worth of interest by paying the loan off early

    Likewise, I've done it the the past, ... but that was on an interest free deal.
    Last edited by footyguy; 07-10-2017 at 6:04 PM.
    • AnotherJoe
    • By AnotherJoe 9th Oct 17, 1:48 PM
    • 7,681 Posts
    • 8,291 Thanks
    AnotherJoe
    • #9
    • 9th Oct 17, 1:48 PM
    • #9
    • 9th Oct 17, 1:48 PM
    So you presumably already knew you were not going to get clobbered by £10k worth of interest by paying the loan off early

    Likewise, I've done it the the past, ... but that was on an interest free deal.
    Originally posted by footyguy
    Yes, though it was a few years ago, one of the deals may have been interest free, pretty sure one wasnt, but there's no concept of them making you pay up the interest you would have paid over the term, i dont think its even legal. Possibly you might pay a month or two.
    • Herzlos
    • By Herzlos 9th Oct 17, 1:54 PM
    • 6,100 Posts
    • 5,527 Thanks
    Herzlos
    Most they can charge you is 2 months interest when you settle early.

    That'll be a rounding error compared to the loss on selling a 2 month old car. Any friends/family in the market for a new car?

    Without knowing the car it's hard to estimate how much you'll lose, but I'd expect it to be at least 10% of the new value.
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