PCP Advice

stand_free

Morning folks,

First time poster looking for some advice....

I am 18 months into a 48 month PCP with VW. Due to a change in circumstances I am looking to reduce my repayments on my car and downsize. I currently owe £19,800 on the car, cap value suggests a maximum of £17500 which is inline with what I've been offered for it.

I've been offered a deal on two different cars by the same dealer to downsize, however that includes a negative equity loan to cover the shortfall. In either situation I'm saving over £100 a month, but I'm wary of getting into a situation whereby I'm rolling up this debt into an older car.

A bank loan to pay off existing car would result in paying more money so defeating the purpose.

I could keep the car and look to save money elsewhere but as it's my second biggest outgoing it seems sensible to cut that cost as much as I can.

Any suggestions/advice would be much appreciated

molerat

You have very few options. Work out which one is cheapest - bank loan or new PCP. Bank loan could be cheaper overall but dearer monthly but will not be tied to the car. There is only going to be one winner here and it is not you, the cheapest may well be keeping the car you have.

stand_free

Yeah unfortunately that's the most apparent thing! Either way I'm not winning in this scenario