Part X-ing a PCP car HELP

Ed26

Hi id appreciate any help as i fear ive agreed to something a little dodgey!!

4 years ago i took out a PCP contract with a FIAT garage. I have recently paid my very last monthly payment so as i understood have 3 choice... walk away, pay the final baloon payment and own the car or... part X my car and pay pcp on another one. HERES THE PROBLEM...
I went to arnold clark without consulting the fiat garage looking at other cars. I decided to go into a PCP contract for a mini with them whilst part exing my fiat with them!!! I am confused as theyve taken the part ex value of the fiat off the mini but surely the finance company owns the fiat??? How can arnold clark knock tge part ex value off my mini when the fiat is not mine?? Am i going to have to pay the balloon payment to the finance company when i hand the fiat into arnold clark??

Please help

motorguy

Ed26 wrote: »

Hi id appreciate any help as i fear ive agreed to something a little dodgey!!

4 years ago i took out a PCP contract with a FIAT garage. I have recently paid my very last monthly payment so as i understood have 3 choice... walk away, pay the final baloon payment and own the car or... part X my car and pay pcp on another one. HERES THE PROBLEM...
I went to arnold clark without consulting the fiat garage looking at other cars. I decided to go into a PCP contract for a mini with them whilst part exing my fiat with them!!! I am confused as theyve taken the part ex value of the fiat off the mini but surely the finance company owns the fiat??? How can arnold clark knock tge part ex value off my mini when the fiat is not mine?? Am i going to have to pay the balloon payment to the finance company when i hand the fiat into arnold clark??

Please help

The finance deal has nothing to do the the FIAT dealer you originally bought the car off. There is no need to tell them or for them to be involved.

Did you tell Arnold Clark the car is on a PCP and the balance is due?

If not, they should have picked it up as soon as they HPI'd it?

Ed26

Hi thanks for replying, so yh i made it clear to arnold clark that i had paid the final pcp montly payment but had not paid the baloon payment... they said thats fine. I dont get it though as they valued the fiat at say 4grand and then knocked that off the price of my new car with arnold clark so it appears as though arnold clark are not only paying the finance company 4grand but also losing 4 grand on the mini they are allowing me to pcp??

molerat

Have they added the PVP settlement figure anywhere else ? The trade in value and PCP balloon can be 2 completely different amounts and dealers also do some creative accounting with trade ins to minimise their tax liability.

neilmcl

Although they've used the value of the Fiat to trade against the Mini you will still have to pay the settlement figure which they'll obtain from the finance co. If the settlement figure is less than the trade in value, ie, you have some equity then great just make sure it's not the other way round. This figure will no doubt be rolled into your credit agreement for the new car.

marty2be2000

In the circumstances of the OP, I would have just handed the Fiat back to the Fiat dealer to end the PCP and taken out a fresh agreement with Arnold Clark for the full amount.

Ending the PCP with Fiat means no worrys about negative equity as you would not need to pay anymore to Fiat. However if the Fiat is in negative equity, by selling the Fiat to Arnold Clark you will have to pay that in addition to the new car.

motorguy

neilmcl wrote: »

Although they've used the value of the Fiat to trade against the Mini you will still have to pay the settlement figure which they'll obtain from the finance co. If the settlement figure is less than the trade in value, ie, you have some equity then great just make sure it's not the other way round. This figure will no doubt be rolled into your credit agreement for the new car.

There shouldnt be any figure to roll in?

If the car is worth less than the O/P owes they should be simply handing the car back.

motorguy

The O/P needs to sit down with the salesman / sales manager and have them explain the figures to him line by line.

Anything else here, and we're just hypothisising.

The figures should at very least read like

"You owe £XXXX on your car"
"Your car is worth £XXXX therefore we will clear the finance for you"

neilmcl

motorguy wrote: »

There shouldnt be any figure to roll in?

If the car is worth less than the O/P owes they should be simply handing the car back.

I agree but it look likes the OP is jumping the gun before actually checking this out.

motorguy

neilmcl wrote: »

I agree but it likes the OP is jumping the gun before actually checking this out.

Poor show by the dealer if thats the case and they havent pointed it out...

Ed26

Hi ive just checked and i think im in trouble. Arnold clarks part ex is about 300 pounds less than the baloon payment requested by fiat!! Does this mean ill have to pay the 300 difference?? I wasnt told about this by the salesman at arnold clarke at all... just that im coming in tomorrow to pay the rest of the agreed deposits (500 pounds) when i part ex my fiat!!