Advice on my PCP and negative equity

domgreenslade

AdrianC wrote: »

Can you post the figures from that agreement?

How much deposit did you pay?
What is the monthly payment?
What is the APR?
What is the final payment, the balloon?
Are there other fees broken down on there?

This is everything from Renault Finance Online:
My Deposit: £1500
Renault Contribution: £500
Financed Amount: £10,984.00
Outstanding Amount: £7,432.17
APR Rate: 6.82%
True Rate: 6.13%
Payment 1: £261.59
Payment 2-48: £162.59
Payment 49: £5,318.50
Balloon Payment: £5,169.50

Money_saving_maniac

domgreenslade wrote: »

The advice, whether bad or good, is to look at a bank loan, rather than PCP in the future.
Handing the car back when possible, is going to affect getting another PCP deal, and may potentially affect getting a bank loan too, so either way, i am stuck.

The alternative, is to get a bank loan to pay for the balloon payment. Or to go for a cheaper car, and roll over the negative equity.

You clearly need a car as you are doing a lot of miles. Surely the most sensible thing to do is to get a loan for the balloon payment.

domgreenslade

Well I am hoping that towards the end of the year or at the very start of next year, I will be in a company car which I have been promised, and there's not really much use for the car anyway after that, so I don't really know what to do. I don't have the space to keep 2 cars at my house as it is, and wouldn't be used at all, as I can use the company car for pleasure as well as business and commuting.

domgreenslade

Sorry to resurrect this but does anyone know how to work or whether I am over halfway through the agreement, given the numbers I posted above?

Cornucopia

I know that it's 50% of the total amount payable, but I don't know how you account for the deposit & dealer contribution (if at all).

Including the Deposit, the total amount payable is £15222, half of which is £7611. Taking the deposit back off, gives £5611, and that takes you up to payment 34.

Excluding the Deposit, the total amount payable is £13222, half of which is £6611. This takes you up to payment 39.

k3lvc

domgreenslade wrote: »

Sorry to resurrect this but does anyone know how to work or whether I am over halfway through the agreement, given the numbers I posted above?

How about reading your agreement ? It'll tell you the exact answer rather than relying on us making assumptions

domgreenslade

Ok so the value in the agreement is £8360 which is apparently half the amount payable

Now my issue is that I would never have paid half until after the PCP ends????

domgreenslade

Or is that £8360 minus monthly payments, minus the deposits?

neilmcl

domgreenslade wrote: »

Or is that £8360 minus monthly payments, minus the deposits?

It really is simple. Take the Total Amount Payable (consisting of deposit, all monthly payments and optional final payment plus fee), this should be clearly outlined in your agreement. Then you divide this by 2 then minus your deposit and this will give your 50% VT figure.

In fact I'd be surprised if there wasn't a section in the agreement entitled "Termination: Your Rights" or similar which should state what the 50% repayment figure should be.

motorguy

domgreenslade wrote: »

Or is that £8360 minus monthly payments, minus the deposits?

By my calculations and based on total amount payable = deposit + monthly payments + residual + fees...

Deposit = £1500 + £500

Monthly payments = £261.59 + (47*£162.59) = £7,903.32

Residual + Fees = £5,318.50

Total amount payable = £15,221.82

50% marker is £7,610.91

£2,000 paid up front (£1,500+£500), so you need to make £7,610.91 - £2,000 = £5610.91 of monthly payments before you can VT with nothing further to pay.

£5610.91 / £162.59 = 34.51, therefore you will have exceeded the 50% marker after the 35th monthly payment.