PCP: what should I do?

NOVAMET21

Yes 3 door Fiat is not practical with a baby. I think your car is on HP rather than PCP because with PCP after 3 years you can trade in with another brand new car.


PCP, they mentioned 3 options after 3 years;


Hand the car and walk away.
Hand the car and get finance on another brand new car or
Pay the balloon payment.


For my car, I'm planning to do none of the above but try to see if I can finance my car for the next years for the outstanding balance of £4,000. If they don't then I would just simply apply for a loan with another loan company and pay the outstanding balance to Honda. Then after that finance is over then I don't have to pay any monthly payment for my car.




RagingPolo - So you going to get a loan to pay off Fiat so that you can hand the car back? Also how are you going to get a bigger car?

leespot

£15k for a Fiat 500?? Jesus!

What is the value of the car if you sell privately? Dealers will never give you a decent price against it.

aphill24

Yeah, so looking at it, getting a small loan to pay off the rest and then buy a bigger car will still be cheaper in the long run, even though it's paying off negative equity. Unfortunately, I think it was a bad idea to get a car on finance, for me. And now I'm going to be (literally) paying for it.

Why do you have to get a small loan? small loans are notoriously expensive to finance unless you can get 0% on a money transfer CC . Basically what you are doing is consolidating the fiat loan and paying interest twice. You really need to think this through as I have seen many work colleagues lose a lot of money by changing their new cars every nine months and that's with a discount.

Put your reg number into webuyanycar and see if it comes up with a better offer.

RagingPolo

@agurung - Looking at the paperwork, the finance is PCP (it does say it), so I'm currently conversing with the finance company to find out how much it will be to get the VT started then the next step will be to either pay with some savings or to get a small loan. The loan will still be paying less than, which is the main objective. I'll then use the rest on the loan to buy a bigger car. I'll go for a cheaper one this time! Maybe 2k, 2.5k tops!!

@leespot - yeah, not the cheapest! Private value is about 6k so barely worth it

Oakdene

By my calculations & the method I used to VT my Toyota Aygo last year you need to pay a total of £1079.45 to VT & the excess mileage shouldn't apply.

leespot

I picked up a loan with Sainsburys for a new (new to me, not brand new as would never buy brand new) car and the rate was 3.1% - could be worth a look?

RagingPolo

Oakdene - Hopefully the excess mileage doesn't count. And £1079.45 is very doable.

Leespot - That's a good shout. I was looking at going with my bank, HSBC, and that was at 6.1%. I'll look into Sainsbury's

takman

I wouldn't automatically assume that a 3 door car is going to be impractical when having a baby. I've put a baby into a car seat in a 3 door car and it was actually easier than doing it with a 4/5 door car. When using a door car you can put the baby in straight ahead of you, with a 4/5 door car you have to do it at an angle which is slightly less easy.

leespot

Also, if she hasn't passed her test, don't forget to budget that into things when doing your figures. (much higher insurance for at least the first year etc)