PCP deal queries

labadiena

Hi,

I have a PCP deal on a Mazda 5 Sport and I currently pay £145 for.
Its due to run out in September.

I am unsure of what to do at the end.

I am aware I have 3 options.

I would ideally like a new car of similar ilk but when I went to see the dealer he gave me some options and said I had £2k equity on the car plus to trade in and get a new car the montly payments were far higher than I am paying now and not within my budget.

Maybe I went into the deal naively but at the time it seemed the best deal for us as we got a nice new car for relatively small outlay.

So if the trade in isn't an option, we considered buying the car but I would have to finance £7k ish and even the best loan these days would cost much more again than I pay now.

I ideally want a new car so the other option is just to give the car back and then get another deal from another dealer/broker for a new car.
But I assume as times have changed I am not going to get a new car for the same or anywhere near figure I pay now?
I have considered PCH, would this be an option for us?

Any help greatly appreciated.
:j

xycom1

£145/mth sounds cheap for a car of that size - either the depreciation has been really low or you put a good chunk of deposit in when you started?

Sounds promising that the car is allegedly worth £2k more than the hand back value? Which would make handing it in and walking away a bit of a silly option.

I guess your choices are either to:

1) Trade it and take something new, potentially more expensive and same size or smaller and same price as you have mentioned.
2) Try and sell the car to settle the outstanding finance and take the equity in cash. Potentially go for a leasing deal which might work out cheaper.
3) Refinance the outstanding balance and keep the car. You say that the payments work out higher than what you pay now, but remember that this is because you have a large deferred payment coming up - if you're looking at loans, then you are just paying monthly until it's all paid off. Either extend the term or go for a loan with a balance payment at the end like the M&S car loan.

We have a car on personal lease and it's very good value - if you go for whichever model is on promotion rather than being fussy about which model you want, you can get a car much cheaper than a PCP and without the hassle of having to sell/trade it at the end of the contract.

Hintza

labadiena wrote: »

I had £2k equity on the car
:j

You will need to buy the car or trade it in and get the buying garage to pay off the finance and putting the £2k towards the deposit.

You will lose more if you just give it back.

(I am assuming that you mean the car is worth £2k more than the final payment)