Barclays Car Finance Query

Andyboy555

Hi everyone, I’m hoping someone a little more savvy can explain all this to me.

2 years ago I “purchased” a BMW on what I thought was a PCP scheme, through a main dealer.

Now, I’m almost at the end of the deal, and started to look around.
The dealer I visited ran an HPI and turns out there is nothing against the car.
So kindly they called Barclays and it turns out it’s a personal loan, which I’m presuming is secured on the car somehow.

Now I have a settlement figure, and a GFV.
My question is, considering it’s looking like a personal loan am I free to sell/ trade the car?
I (perhaps wrongly) presumed the GFV would be my balloon payment but that and my settlement are completely different.

Numbers are as follows.
2 year PCP on a 6 month old model
RRP 19,990
Deposit 7800 (roughly)
24 x 148 monthly payments.
GFV 14,600
Settlement 11;000

So does that mean if I want to keep the car I’m only paying the 11,000?
I’ve been offered 13,000 as a trade in ( non bmw dealer)

Thanks in advance

Andy

lopsyfa

Yes, you can pay the 11000 and the car is yours.

Nebulous2

I don't understand this. It seems to be a personal loan, with part-repayment and part interest only, or a personal loan with a longer timescale, which you can repay now with an £11000 settlement figure.

What relevance does the guaranteed future value have?

Nearlyold

With HP based PCP the car belongs to the finance company until you pay the balloon payment at the end or if you want to hand the car back it goes back to the finance company (as it already belongs to them) and the finance company guarantee the value of the car so that you have no more to pay.

With Personal Loan based "PCP" arrangements you own the car from outset with an option in the contract to require the finance company to buy the car back at the end of the agreement (when the balloon would otherwise be due) for the GMFV.

However I am puzzled by the OPs figures like you as I can't see how the settlement figure is less than the GMFV unless perhaps the OP has made previous overpayments or maybe a quirk of the rather large deposit.

The personal loan based PCP is usually not something the customer applies for but rather something the finance company chooses to offer for whatever reason (they might be concerned about the VT risk for example with a heavily depreciated car being handed back with monster miles).

Mobeer

OP, are you sure the GFV value you quote is not the total amount payable over the term of the deal?

Doing a quick calculation I can get similar figures like:

RRP 19,900
Deposit 7,800
Amount to finance 12,100
Final Payment 11,000
24 months @ 147/month
APR 10.49%
Total payable 14,528

Not quite the same as you have but maybe closer than your original post?

Nearlyold

Usually the Total Amount Payable includes the deposit as the calculation is normally the Price of the Goods plus interest plus fees? Of course as the OP has not come back it could just be a mistype.

Nebulous2

I'm sure we are missing key information. Most cars lose 50% plus in first 3 years. Giving a GFV on a 6 months old car of close to 3/4s of the purchase price after 2 years seems unlikely.

Maybe I should be looking at a used BMW for my next car!