PCP Car Loan - Changing Car Make

CarlizzleFoSho

Hi All,

I'm thinking of purchasing a car via PCP. However I can't find any explanations about what happens at the end of the term if you want to change car make?

So say I got a new Ford over 4 years, and part way through or at the end of the term I want to change to an Audi.

How do I go about this? Can you change to different car make part way through the term? What would Audi for example use as a deposit, can they take my car as a part ex? Do Ford allow that? Can you only part ex it at the end of the term?

Super confused.

stator

If it's a different car made by a different manufacturer (not just brand) then you would have to terminate the agreement and take out a new one.

CarlizzleFoSho

Ok, so say I terminated it part way through and went to a different manufacturer, would I have any deposit from the Ford to use for an Audi or would it literally go back to Ford and I have nothing to use a deposit for an Audi?

If I kept the Ford until the end of the agreement do I have more options? For example could I use the car as a deposit or PX for a new Audi?

I just want to know what my options are if I decide to change manufacturer part way or at the end of the agreement.

Cheers

Idiophreak

You get 2 years through your contract, you want to switch to audi.

You've 8k left to pay on the ford, which is worth 9k. Pay off the loan, then sell the car / use the ford as part ex.

k3lvc

CarlizzleFoSho wrote: »

Ok, so say I terminated it part way through and went to a different manufacturer, would I have any deposit from the Ford to use for an Audi or would it literally go back to Ford and I have nothing to use a deposit for an Audi?

If I kept the Ford until the end of the agreement do I have more options? For example could I use the car as a deposit or PX for a new Audi?

I just want to know what my options are if I decide to change manufacturer part way or at the end of the agreement.

Cheers

Is it easy - yes - walk into dealer that you want to buy from and trade your car in as normal - they will pay their valuation of the car back to finance company and you will have to pay any negative equity

Is it cost effective - unless you're at or towards the end of your PCP then no - you're likely to be in negative equity and please resist the temptation to roll the negative equity over to the new car - that's a slippery slope

Can you use it as a deposit for new car - :rotfl::rotfl::rotfl:see above - unless you've struck very lucky with chioce of Ford that's now a classic and therefore increasing in value then the only deposit will be from your nether regions when they tell you how little your car is actually worth

CarlizzleFoSho

Thanks for your concise reply!

So if I keep the Ford ST until the end of the term what's the process of then going to another manufacturer and getting rid of the Ford? Will I just hand it back to Ford and then have no deposit to use for another manufacturers car?

nomoneytoday

If the car is worth more to a dealer than the amount of finance outstanding that becomes the deposit on the new car. The make doesn't matter.

i.e. your old Fiesta has a trade in value of £5000 and a balloon payment of £4000, the dealer would pay off the £4000 for you and use £1000 deposit against the new Ferrari.

CarlizzleFoSho

So with that in mind is it best to let the pcp run its course and only consider doing this once the term is finished?

Idiophreak

CarlizzleFoSho wrote: »

So with that in mind is it best to let the pcp run its course and only consider doing this once the term is finished?

You pay a fixed monthly payment.

Depreciation isn't fixed...it decreases with every month.

So month 1: you pay £200, the car depreciates £500, month 13: you pay £200, the car depreciates £300. Month 25: You pay £200, the car depreciates £100.

So, the further you get toward the end of your deal, the better your chances of having a little equity in the car to use as a deposit on the next one.

But that's not to say you're necessarily best off waiting to the end of the contract...if a great deal comes up, you might save more on that by ending your current contract a year early than you lose by doing so...

The only thing you can do is continually evaluate the amount of equity in your car and the deals are around. You don't have to take a deal til the end, but you might choose to.

Just a note...it's hardly ever worth simply handing the car back. In most instances the car is worth more than the GFV come the end of the contract...so you're better off getting a new car from the same place, taking it elsewhere as partX or paying GFV and selling it privately...

CarlizzleFoSho

Thanks for that, very well explained!

I think I'd definitely want to go down the route of PX'ing it to a different manufacturer.

What confused me was thinking well, say I decided 3 years into the 4 year term that I wanted to PX my Ford through an Audi dealership...wouldn't this car still belong to Ford? So can't they say 'What are you doing PX'ing a car you don't own to another dealership when you haven't finished paying us off?'

Idiophreak

CarlizzleFoSho wrote: »

What confused me was thinking well, say I decided 3 years into the 4 year term that I wanted to PX my Ford through an Audi dealership...wouldn't this car still belong to Ford? So can't they say 'What are you doing PX'ing a car you don't own to another dealership when you haven't finished paying us off?'

Yes, they might well say that. (although it will be a finance company, not Ford themselves)

Either you get Audi to agree to pay the finance directly, which shouldn't be a massive problem, or you pay them yourself before doing the partX.

The finance company don't have any particular loyalty to ford or anyone else....all they care about is getting their money back. So if Ford call them up and give them the money, that's great...but if it's Audi that calls, that's fine too.