PCP advice, termination, handing car back.

Thomas_C_2

Thanks guys.

I need to weigh up my options as to whether I keep paying it whilst I'm in Australia (financial investment) or trying to get as much money for the car as possible.

I'll also see what Volvo say.

In regards to selling it and not coughing up the whole sum. Not an option. I would have to pay the settlement regardless and the finance company would charge me £2.29 a day just to keep it open.

bigjl

Thomas_C wrote: »

In regards to how much my car is worth.

Using autotrader,

Private sale: £13,345.

Part exchange £12,537

So about £2000 difference from settlement.

What spec and mileage?

As I could buy several 14 plate V40's today at CarGiant for under £13k

I would expect trade in to be closer to £10.5 or £11k

Put your details into WBAC and you will get a no frills trade book value on your car.

If you afford to park it up for a year or so then that is your best bet. Or pay the monthly payment till you actually reach the VT point then return to the UK, clean it and VT it

You are just getting to the point when the worst of the first 3 years depreciation has already occurred so you might aswell have the car when you return.

Either way it's going to cost you.

bigjl

Thomas_C wrote: »

Thanks guys.

I need to weigh up my options as to whether I keep paying it whilst I'm in Australia (financial investment) or trying to get as much money for the car as possible.

I'll also see what Volvo say.

In regards to selling it and not coughing up the whole sum. Not an option. I would have to pay the settlement regardless and the finance company would charge me £2.29 a day just to keep it open.

A car on a PCP is never an investment it's a depreciating asset at best.

As you have it on PCP all you are doing is basically financing the depreciation.

Thomas_C_2

bigjl wrote: »

A car on a PCP is never an investment it's a depreciating asset at best.

As you have it on PCP all you are doing is basically financing the depreciation.

Thanks.

It's a V40 R Design, 19,000 miles. I'm getting £12,735 on WBAC.

My next best bet is Volvo when I can speak to them.

There is an option of my parents using it whilst I am away.

I suppose I have to weigh up whether it is worth paying £3411 for a year when it's going to be sat on my driveway or putting some of that money into getting rid of it.

The only way I will win in this situation is to go the whole term and re-finance the balloon payment until it is eventually mine.

Just means paying out monthly for a car I won't be using for at least a year possibly two.

Thomas_C_2

I'm not going until October the 16th so there will be two more payments coming up.

So that will lower the settlement slightly. I just have to hope then that Volvo will offer me a price as close to the settlement as they can.

Cornucopia

bigjl wrote: »

A car on a PCP is never an investment it's a depreciating asset at best.

As you have it on PCP all you are doing is basically financing the depreciation.

To be fair, a new car isn't an investment, it's simply a ticket to depreciation.

All a PCP does is wrap up the depreciation into a neat little bundle of payments and then (optionally) underwrite the car's value at a point in time.

Personally, any PCP that was more than £2000 down and/or more than £200 per month would have me looking very closely to see where the value was, but I think there are some deals worth looking at below those figures.

plane_boy2000

Cornucopia wrote: »

To be fair, a new car isn't an investment, it's simply a ticket to depreciation.

All a PCP does is wrap up the depreciation into a neat little bundle of payments and then (optionally) underwrite the car's value at a point in time.

Personally, any PCP that was more than £2000 down and/or more than £200 per month would have me looking very closely to see where the value was, but I think there are some deals worth looking at below those figures.

Agree - V40's are expensive to lease / PCP compared to a seat leon / VW Golf / merc A class, and for me, 48 months is to long as you are stuck with the car for a year after the warranty runs out

Herzlos

Thomas_C wrote: »

I suppose I have to weigh up whether it is worth paying £3411 for a year when it's going to be sat on my driveway or putting some of that money into getting rid of it.

You'd be cheaper, after a single year, to sell it to WBAC now and stump up the settlement difference (~2500), definitely so after 2 years.

Of course, if you can get someone else to use it and cover the costs whilst you're away that might be best all round.

I wouldn't assume that the value and settlement figures will get closer together as time progresses; it might, but it's also likely that the value will fall just as fast if not faster. Your £280/month payment is mostly interest rather than capital.

If it were me and I was going to be away for at least a year, I'd (a) offer it to my parents and then (b) sell it and borrow the difference. Leaving a car unused on a driveway for a year or 2 is going to cause problems (cars don't like being left like that; so you'll probably need new battery, tires, fuel cleaning), and you've still got insurance and so on to deal with. The car will also be worth a lot less by that point too, despite having low mileage for the age.