PCP Help

JoeHarrison94

Hi All,

So to break it down, currently I am in a 4 year PCP deal which commenced in August 2017, I pay £226 per month and I can VT after 31 months which is Feb 2020 or wait until August 2021 and hand it back. I also have warranty for the next 3 years and my final payment will be £3500 to own it outright. My settlement figure now is £10253 and my car is worth about £9000.

So my question is should I take out a loan and pay the settlement figure, I have looked at and it would cost me £229 a month for 4 years or £186 over 5 years and own it or should I just wait and Voluntarily Terminate it after the first 31 months. Ideally I would have liked to swap my car for a slightly bigger one as we are now expecting another little one, but with negative equity there is no way to swap cars without it costing me more money.

Any help would be very much appreciated.

Regards

facade

If you want the car take the loan. By your figures it will cost you 48x£229 which is £10992.
If you want to keep it with your PCP, you have 41 payments of £226= £9266 plus a balloon of £3500, which works out as £12,766.

No contest.

Your other option is to VT which will cost you another 24 x £226= £5424 and leave you with no car in 2 years.