Anyone ever handed back a PCP car?

Mercdriver

missile wrote: »

You are in a hole, stop digging. Re-financing will surely cost you more. Best stick with the original deal ... if you can.

I think the OP is talking about refinancing when he gets to the end of the term to pay for the £4k balloon payment. As he knows the car and is happy with it (or will still be happy with it in 2 years time) then getting a loan to cover the £4k on a good rate might be a good idea.

To the OP, if the salesman told you that you would never own the car, he was probably selling you the whole PCP bubble where you never own the car because you never pay the balloon as you take out another PCP at the end of the term instead of paying the balloon payment.

As many say, on a typical PCP, VT qualification point is usually quite close to the handover point in any case, so might be worth holding til the end of the term and then refinancing as you've suggested. Better a loan for £4k for a car you know, than one for 3k that you don't.

neilmcl

missile wrote: »

You are in a hole, stop digging. Re-financing will surely cost you more. Best stick with the original deal ... if you can.

Why do you say that? If the OP chooses not to pay the balloon then he's still going to find money for a new car. If he's otherwise happy with the car he's got, and as long as there's no negative equity on the car, then he may as well get a cheap bank loan and keep it.

That's assuming you haven't misunderstood the OP's post

missile

I was voicing an opinion as to re-financing now. IMHO it will (most likely) work out more expensive to cancel one finance agreement to take out another. OP would be wise to ask for a settlement figure then review his/ her options.

Little point in speculating now what OP might do in two years time. Hopefully finances will have improved and he/she can save toward that balloon payment and / or review options then.

If the inflation trend continues "a cheap bank loan" may not be available.

Mercdriver

missile wrote: »

I was voicing an opinion as to re-financing now. IMHO it will (most likely) work out more expensive to cancel one finance agreement to take out another. OP would be wise to ask for a settlement figure then review his/ her options.

Little point in speculating now what OP might do in two years time. Hopefully finances will have improved and he/she can save toward that balloon payment and / or review options then.

If the inflation trend continues "a cheap bank loan" may not be available.

But the OP wasn't talking about refinancing now, that's the point!

If the OP can get a better loan rate now for the payments remaining, then it might be worth looking at the settlement figure, but if he has a good rate on the finance, there will be limited value to this. If it is the 'Just Add Fuel" agreement, then I'm not sure what would happen re the insurance in this instance.

sheramber

CreditCardJunkie wrote: »

Yes it says about the 50% so I've paid £5200 and the car was around 12k so I can't hand it back yet then!

Wondering is it worth refinancing for the balloon payment - the car has been well looked after and at the point of owing 4k I'm likely going to need to spend at least 3 for something half decent. Better the devil you know?

I think the 50% payment is 50% of the finance package, which is the cost of the car plus the interest charge.

missile

Mercdriver wrote: »

But the OP wasn't talking about refinancing now, that's the point!

The intention was

hand the car back at any stage now

To do that he would need to refinance now