Trading in PCP for used vehicle.

doomfreak777

Hi all,

I am looking into options at upgrading my current vehicle and here is my situation:

7 months into a 36 month PCP agreement.
Settlement figure is just shy of £11000
Online market valuation of my car gives £8230 as a private sale or £7130 as part x.

Is it possible that I can go to another dealership to purchase a used vehicle worth say £15,000 on finance and use my current vehicle to offset part of the cost.

Bearing in mind that the difference between the settlement and the part x value is about £4000 then I would essentially have to get finance for £19,000? Obviously this isn't exactly economical but have I got my thinking correct and is there any cheaper way to acquire the same vehicle?

Thanks!

Stevie_Palimo

If you have finance still owed and chop the car into a garage against a newer car any money raised from the sale will go to the finance Company so you cannot offset a new purchase with your already financed car unless you clear the full money that is owed first.

motorguy

doomfreak777 wrote: »

Hi all,

I am looking into options at upgrading my current vehicle and here is my situation:

7 months into a 36 month PCP agreement.
Settlement figure is just shy of £11000
Online market valuation of my car gives £8230 as a private sale or £7130 as part x.

Is it possible that I can go to another dealership to purchase a used vehicle worth say £15,000 on finance and use my current vehicle to offset part of the cost.

Bearing in mind that the difference between the settlement and the part x value is about £4000 then I would essentially have to get finance for £19,000? Obviously this isn't exactly economical but have I got my thinking correct and is there any cheaper way to acquire the same vehicle?

Thanks!

What has changed so much in your current circumstances that you MUST change your car now?

This is financial suicide. Firstly, i dont think any finance company will give you a HP agreement of £19,000 on a £15,000 car. Secondly you'd have a £15K car on which you'd owe / be paying back probably £25,000 including interest.

doomfreak777

Thanks for the clarification.

I was just trying to see if it even is possible and I know it would not be efficient at all but not sure exactly how much of a hit I would take, although I did expect a few k and wondered if it's possible to transfer the agreement somehow to a different vehicle. Not looking to lose that much money off of it though so will leave it.

gazfocus

doomfreak777 wrote: »

Thanks for the clarification.

I was just trying to see if it even is possible and I know it would not be efficient at all but not sure exactly how much of a hit I would take, although I did expect a few k and wondered if it's possible to transfer the agreement somehow to a different vehicle. Not looking to lose that much money off of it though so will leave it.

The problem is, the whole point of car finance is that it's secured on the car, so the finance company are not likely to offer you £19,000 on a £15,000 car as there would not be sufficient security for them.

AdrianC

doomfreak777 wrote: »

wondered if it's possible to transfer the agreement somehow to a different vehicle.

What do the finance company say when you ask them that specific question? Theirs is the only answer that will matter.