Can you trade in a car on PCP ?

Djene

Hi, I've had my PCP car for a year and there is still 4 years left to run. I am currently paying £270 p/m and there is about £13,000 left to pay, roughly. Like any car, it's not worth 13k now (about 8k now). I am looking at my options, as I want a larger car, and one that is a bit cheaper p/m. But before I start looking at anything I'm exploring how I can get rid of my current car.

I know you can VT at anytime, hand the car back and pay the balance up to 50%. Which would be about 5k, but I know the finance company would want that in one go, and would let me pay the remaining balance over the next 4 years.

So, I was looking at trading in, but I know nothing about trading in a PCP car, or if you can even do it, or how it would work out. So any info on that, or any other idea would be a great help.

Thanks.

forgotmyname

The issue will be that the car is not worth what you owe. Unless the dealer over estimates the new cars value by about £5000 for the new loan.


You going to be seriously out of pocket.

whitelabel

on a 4 year pcp, it will be at least 2 years before you break even so yes you can trade it in, but you will have to cover the equity. it will also depend how much deposit you put in to it yourself
speak to the dealership and get a settlement figure, and also let them know your looking for something bigger and they will have more to work with to get you a better deal.

Mr_Mink

With that kind of negative equity, you're best off sticking with your current car.

It is possible to transfer some negative equity to a new car, but I believe it's up to about £1000 max.

burlington6

So you want a new car that's bigger, for less money?

InsideInsurance

burlington6 wrote: »

So you want a new car that's bigger, for less money?

Not that outlandish an idea, depending on what the OP has. Plenty of cars bigger and cheaper than a Mercedes SLK 55 AMG

jaydeeuk1

Wow, thats some depreciation - what car is it? Not counting any deposit you will have made, 60 months of £270 is £16200, and if a year later the car is now worth £8000 that is one expensive PCP.
Whats the GFV / final optional payment? Is it a 0% PCP? You say there is about £13000 left to pay but this doesn't include the final sum. Forget trying to hand it back for a bigger cheaper car, you're still going to have to pay the shortfall in the new PCP so it won't work out any better.

Judging from your other thread I'd head back to the debt free wanabee board, look at handing the car back, go on a DMP or something, get a £500 car and start living within your means.

burlington6

InsideInsurance wrote: »

Not that outlandish an idea, depending on what the OP has. Plenty of cars bigger and cheaper than a Mercedes SLK 55 AMG

With the figures quoted you're wrong about the amg

InsideInsurance

burlington6 wrote: »

With the figures quoted you're wrong about the amg

Didnt say the OP has a SLK55, just that it is possible to spend less and get a bigger car depending on what the OP's original car is.

Djene

Its Corsa VXR on Vauxhall Finance at 0% and no deposit. There's no big balloon payment at the end, just £270 for the 5 years.

Djene

jaydeeuk1 wrote: »

Wow, thats some depreciation - what car is it? Not counting any deposit you will have made, 60 months of £270 is £16200, and if a year later the car is now worth £8000 that is one expensive PCP.
Whats the GFV / final optional payment? Is it a 0% PCP? You say there is about £13000 left to pay but this doesn't include the final sum. Forget trying to hand it back for a bigger cheaper car, you're still going to have to pay the shortfall in the new PCP so it won't work out any better.

Judging from your other thread I'd head back to the debt free wanabee board, look at handing the car back, go on a DMP or something, get a £500 car and start living within your means.

Why would I want to go on a DMP ? I've been paying the £270 for the past year with no problems, I know my priorities. A DMP would be a bit extreme for £1900 odd debt on a 0% cc and a car on pcp that is being paid on time each month. I'm just looking for a bigger car, asap.