Downgrading PCP ?

Double_V

I got a car worth £38,864 on PCP. Which I renewed back in March 2015 when I was half way through on my old car and went in to the dealer for yearly service and that is when I seen my current car and made a deal.

The car is lovely, I am loving every moment in it.
I am paying £478 a month. I did not pay any deposit.
I am now seeing Merc A-Class, VW Golf etc for £225 - £300 a month with no deposit.

So I am thinking to change or downgrade my current PCP.
Is this possible ?
Or shall I go back to Audi and ask them to change it to A1 ?

I have just heard about government ISA account, where you put £200 and government will add £50 towards your house saving.

I would like to do that, and I can only do it if I can save my monthly car payments.

Thanks for the help.

motorguy

Double_V wrote: »

I got a car worth £38,864 on PCP. Which I renewed back in March 2015 when I was half way through on my old car and went in to the dealer for yearly service and that is when I seen my current car and made a deal.

The car is lovely, I am loving every moment in it.
I am paying £478 a month. I did not pay any deposit.
I am now seeing Merc A-Class, VW Golf etc for £225 - £300 a month with no deposit.

So I am thinking to change or downgrade my current PCP.
Is this possible ?
Or shall I go back to Audi and ask them to change it to A1 ?

I have just heard about government ISA account, where you put £200 and government will add £50 towards your house saving.

I would like to do that, and I can only do it if I can save my monthly car payments.

Thanks for the help.

I would say at this stage you owe wayyyy more than your car is worth, so unless you have a large financial injection you can put in, you're fairly stuffed.

How long is your PCP deal over?


PCP deals are designed to run to the end of their term. Changing your mind part way through is usually quite costly.

Herzlos

But talk to the PCP company and see what they can do; you might be able to drop your payments down even if you lose some money doing it (and it might be less than you get from the deposit scheme)

Double_V

motorguy wrote: »

I would say at this stage you owe wayyyy more than your car is worth, so unless you have a large financial injection you can put in, you're fairly stuffed.

How long is your PCP deal over?


PCP deals are designed to run to the end of their term. Changing your mind part way through is usually quite costly.

I don't have large sum to put in.

The PCP deal is for 48 months.

However, half way through the deal I can either hand the car back and walk away or I can part exchange for an other car.

Shall I wait til next year then ? Is that the best option. ?

I calculated, so far I have paid £5258 in 11 months. Bringing the total to £33606.

I am going to the dealer on Saturday anway, I will speak to them and see what they say.

Double_V

Herzlos wrote: »

But talk to the PCP company and see what they can do; you might be able to drop your payments down even if you lose some money doing it (and it might be less than you get from the deposit scheme)

How can i drop my payments ? And what do you mean by lose some money ?

motorguy

Double_V wrote: »

I don't have large sum to put in.

The PCP deal is for 48 months.

However, half way through the deal I can either hand the car back and walk away or I can part exchange for an other car.

Shall I wait til next year then ? Is that the best option. ?

I calculated, so far I have paid £5258 in 11 months. Bringing the total to £33606.

I am going to the dealer on Saturday anway, I will speak to them and see what they say.

No. Not halfway through.

Once you have paid 50% of the total transaction cost, including amount borrowed, interest, fees and deposit paid.

These figures will be in your finance agreement.

Typically, you will be about 36-39 months in to a four year PCP deal before you've reached the half way point (balloon payment is included)

Also, dont forget the salesman wont have your best interests at heart, he will be trying to flog you another car so he gets commission.

I really think you're fairly stuffed trying to bail this early, unless you've deep pockets and dont mind taking a massive bath.

motorguy

Double_V wrote: »

How can i drop my payments ? And what do you mean by lose some money ?

There is no easy solution here. Reduced payments = cost somewhere else.

londonTiger

why return a £38K car to get a £18k car???

Is it just because it's old? I would keep the car you have.

Double_V

londonTiger wrote: »

why return a £38K car to get a £18k car???

Is it just because it's old? I would keep the car you have.

So I could pay less monthly and save the extra I am paying towards the car.
I am payin £478 a month, if I can get Audi A1 for £300 a month then I am saving £178 a month.

Double_V

motorguy wrote: »

No. Not halfway through.

Once you have paid 50% of the total transaction cost, including amount borrowed, interest, fees and deposit paid.

These figures will be in your finance agreement.

Typically, you will be about 36-39 months in to a four year PCP deal before you've reached the half way point (balloon payment is included)

Also, dont forget the salesman wont have your best interests at heart, he will be trying to flog you another car so he gets commission.

I really think you're fairly stuffed trying to bail this early, unless you've deep pockets and dont mind taking a massive bath.

I had Audi A1 previously on PCP on 36 months.
After 19 months I was able to change my car to A5 with no deposit.
As I don't have deep pockets. The salesman said there was £2000 negative equity but we will pay that off.
So I didn't have to pay anything to clear that car off.
But my monthly increased by £100 as I did not put any deposit.

Herzlos

Double_V wrote: »

How can i drop my payments ? And what do you mean by lose some money ?

You'd terminate your current lease early, paying whatever they want to break out (which could be a lot, since you're not even a quarter of the way through the term), and then you can probably carry that negative equity into the next PCP for a cheaper car.

You'd need to run the numbers, but I reckon you'd be many thousands in negative equity at this point (as much as £10k at a guess).