Tips & Tricks for restructuring car PCP loan

mrdavidlaing

I'm trying to reduce my monthly outgoings, and need some suggestions on how to reduce monthly payments on my car.

I'm half way through a 3 year PCP car finance agreement. The market value of the car is slightly less than the amount still owing. PCP is over 3 years, at 10%pa.

I'm in the process of selling one & buying another property, and will have some cash left over at the end of the deal; approx half the amount still owing on the car loan. I anticipate a period of 3 months between the sale & purchase.

I figure I have a couple of options; but would like your creative suggestions as to other alternatives; and/or feedback on my current ideas.

For the sake of these ideas, imagine the profits from the sale of property 1 are £10k, recieved in Oct. The existing car loan is £5k. I will need £7.5k to buy (complete on) property 2 in Dec. In short, I need £12.5k, but I only have £10k.

(Idea 1) Make a lump sum payment on existing PCP. Is this generally possible?

(Idea 2) Pay off the car loan (£5k) as soon as the property is sold. Get another car loan before Dec for £2.5k (half original). Pay £7.5k for property 2.

Concerns - Can I get a new car loan on an existing car? Can I get a loan secured against a car?

(Idea 3) Scrounge an extra £2.5k - 0% credit card, unsecured loan. Pay off car - £5k. Buy house - £7.5k. Hope I can save up to pay off the 0% CC when due from savings from not having to pay PCP.

Any other ideas?

Critical flaws with the ideas mentioned above?

Thanks!