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Pcp finance

in Motoring
11 replies 1.2K views
Hi
I am new to the forum please can you advise -

I had taken out PCP finance deal with VW Finance services.
Paid a £10,000 deposit towards the car and have now completed the 48 monthly payments of £590 per month. There is a balloon payment now due of £17000 which I find that I can not pay in one payment due to experiencing financial difficulties and had a couple of late payments on my credit file.
As a result the re finance application of £17000 to pay off Balloon payment and purchase car was refused.
After several telephone calls to VW Finance they offered me three monthly payments of £5790 of which I can not afford.
I tried to make alternative arrangements saying as my business was seasonal perhaps could pay off by the end of the year.
This was not acceptable to them and said they would take action to recover the car if I did not pay the three payments.
Please advise if I can do anything else to repay the balloon payment as I can not get finance due to my credit rating.
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Replies

  • forgotmynameforgotmyname Forumite
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    Other than get a loan. Not much.

    Give them the car back and get something more affordable.

    £38,000 for 4 years motoring and nothing to show for it. OUCH!!!
    Censorship Reigns Supreme in Troll City...

  • =rizla==rizla= Forumite
    220 Posts
    As a newbie to PCP's and having one run out later in the year i'm maybe not the best one to answer this, but is the car worth more than £17k now? if so are you allowed to sell the car and then pay the 'balloon' payment with this, keep the difference and get something else?




    .
  • maninthestreetmaninthestreet Forumite
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    £38,000 + £17,000 = £55,000. What VW is it?
    "You were only supposed to blow the bl**dy doors off!!"
  • forgotmynameforgotmyname Forumite
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    The car doesnt belong to the OP until they pay for it. Would you give someone £17,000 for a car that they dont even own?
    Censorship Reigns Supreme in Troll City...

  • I am well aware of what I have paid .
    lOOKING FOR SOME HELP NOT JUST RUBBING MY NOSE IN IT!!!

    The legal stance is what I was asking about.

    On contract says you can sell car then pay off finance so quote regarding who would buy car is not helpful.
  • forgotmynameforgotmyname Forumite
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    Are you sure it says you can sell something that you have not paid for yet?

    Whats the car realistically worth? What will a buyer think when they see its not paid for? It will put a lot of buyers off when they find its still got finance in it. So the question is helpful.

    Trade sellers with cars £18k upwards for a 2010 car. So a private sale will net less.

    Is it worth it?
    Censorship Reigns Supreme in Troll City...

  • marlotmarlot Forumite
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    It sounds like you're not going to be able to raise the finances to keep the car.

    So next step is to try to work out how to come out best from the deal.

    You have two options - either hand back the car, or sell it and use some of the proceeds to settle the finance. THis only makes sense if you get more than £17k for the car after selling costs.

    I'd start with a visit to your VW dealer and see what they would offer for it. And look on autotrader to see what similar cars sell for.

    Private buyers can buy the car - but they'd want to pay £17k to VW finance, and only the balance to you.

    You need to watch out for the date when the finance is due and sell before then, obviously.
  • marlotmarlot Forumite
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    PS. don't forget that VW will want to inspect the car when they take it away. You could be billed for any damage which is over their wear and tear limits, and also any mileage which is over.
  • edited 1 February 2015 at 8:24AM
    CornucopiaCornucopia Forumite
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    edited 1 February 2015 at 8:24AM
    It's a PCP. The options are made pretty clear from the outset:-

    1. Pay off the balloon payment and keep the car.

    2. Return the car and walk away.

    3. Trade the car with VW and have the car's value underwritten to at least GMFV.

    4. (Possibly not mentioned by VW) trade the car with any reputable dealer and have them settle the finance out of the proceeds.

    I would discount trading the car privately. If you do this, the timing and risks around settlement of the finance are all on you.

    I'm intrigued as others are as to which VW attracts a PCP cost of £55k.

    edit: I see the Touaregs go up to over £43k, so with interest, I guess that gets us to £55k total.
    ex Board Guide

  • loskieloskie Forumite
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    People really must enter these finance agreements with little or no thought for the future. All for the vanity of a new car. Unbelievable!
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