Downgrading PCP ?

motorguy

Double_V wrote: »

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.

You wont be though as the severe amount you're going to be in negative equity in your current deal will outweigh that saving.

Drive on at what you have - and think more carefully about the long term implications of a PCP deal before doing it next time.

Johno100

And here's me thinking this thread was going to be about the re-classification of Angel Dust.

Double_V

Johno100 wrote: »

And here's me thinking this thread was going to be about the re-classification of Angel Dust.

From all the replies I am getting this thread is no different to Phencyclidine.

Double_V

motorguy wrote: »

You wont be though as the severe amount you're going to be in negative equity in your current deal will outweigh that saving.

Drive on at what you have - and think more carefully about the long term implications of a PCP deal before doing it next time.

Looks like I have to take the bite and carry on what I am paying.
And will think about it at the end of term.

gzoom

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.

Sounds like PCP deal is similar to mine - low/no deposit, but a massive final payments. Essentially it's a lease deal for 2 years.

You wouldn't be able to 'downgrade' the payments, your only option is want out is to pay 50% of the total owned and terminate the deal early - so your need to pay£15000 ish, which makes no sense since if you keep the car till the end of the term you can hand it back, and that would cost you another £5000.

Sorry but your pretty much stuck - just like me.

Double_V

Herzlos wrote: »

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).

Yeah I ran the numbers and I agree with you.
Think I will just carry on.

Double_V

gzoom wrote: »

Sounds like PCP deal is similar to mine - low/no deposit, but a massive final payments. Essentially it's a lease deal for 2 years.

You wouldn't be able to 'downgrade' the payments, your only option is want out is to pay 50% of the total owned and terminate the deal early - so your need to pay£15000 ish, which makes no sense since if you keep the car till the end of the term you can hand it back, and that would cost you another £5000.

Sorry but your pretty much stuck - just like me.

So after £15000 I can hand it back, they then can pay off the finance.
And I can get a new used car for say £12000 with less monthly payments ?

gzoom

Double_V wrote: »

So after £15000 I can hand it back, they then can pay off the finance.
And I can get a new used car for say £12000 with less monthly payments ?

I think your asking if paying £15,000 would mean you get some kind of money back??

When you choose to terminate the deal, your essentially saying the dealer can have the car back, in exchange your released from the financial commitment to carry on paying back £500/month. BUT your will have NOTHING to show for the 50% of payments you have made to terminate the deal...IE: You pay the finance company £15,000 to terminate the car goes back to them. Your than left £15,000 down and NO car. The dealer can than put the car back up for sale for some more profit.

If you want a new car on PCP your have to start again, with more deposit, more per month calculations etc....difference been your £15K out of pocket to try and save £200/month for 12 months. Much better to just hold on to the car and wait it out, 12 months goes quickly.

Essentially the real winners from PCP deals are dealers (who can sell you a new car on PCP again) and the finance company. Hopefully you can start to see why car dealers LOVE selling people PCP.

londonTiger

gzoom wrote: »

I think your asking if paying £15,000 would mean you get some kind of money back??

When you choose to terminate the deal, your essentially saying the dealer can have the car back, in exchange your released from the financial commitment to carry on paying back £500/month. BUT your will have NOTHING to show for the 50% of payments you have made to terminate the deal...IE: You pay the finance company £15,000 to terminate the car goes back to them. Your than left £15,000 down and NO car. The dealer can than put the car back up for sale for some more profit.

If you want a new car on PCP your have to start again, with more deposit, more per month calculations etc....difference been your £15K out of pocket to try and save £200/month for 12 months. Much better to just hold on to the car and wait it out, 12 months goes quickly.

Essentially the real winners from PCP deals are dealers (who can sell you a new car on PCP again) and the finance company. Hopefully you can start to see why car dealers LOVE selling people PCP.

I wish my customers had the same level of common sense as OP.

loskie

lease instead of pcp.