Pcp & HP what to do with both need advice pls

DD1A

Hi I have a vehicle on pcp which has passed the 50% mark on term
I also have a vehicle on hp which I have paid 25% so far I think.

I want to cut down to one car and change at the same time if possible which would be the best route to take,
A. Trade the pcp vehicle in and terminate the HP.

B. Trade in the HP and terminate the pcp.

C. Try sell HP privately then trade pcp.

TIA

Geodark

Can you VT the car on HP when you have only paid 25%?

System

When you say it has passed the 50% mark on the PCP do you mean 50% of the term, 50% of the PCP payments or 50% of the total value of the vehicle when new including the balloon payment?

With VT it is when you've passed 50% of the total new value of the vehicle when you got it including the PCP payment. Usually you don't reach that until part way through the final year.

You'll find it hard to sell a car with finance on it privately without taking a real hit.

DD1A

Maybe I should have been a bit more precise sorry,
It’s over 50% on term, a 4 year deal and 2 years and 5 months passed.

facade

Then you likely can't VT it. Get settlement figures for both, compare them to what you could get for the cars and take the route with the lowest hit, or wait until you have repaid the VT figure, which will be in your original paperwork (It is 50% of the total payable under the agreement, including the final payment for the PCP, and interest)

System

As above. You're nowhere near having paid 50% of the total price of the car so can't VT unless you pony up the difference.

DD1A

I got my question wrong I have corrected my first post, is there a way/solution to where I want to get to?
Thanks

facade

I posted a suggestion above.


Find the settlement figures for both cars.
Compare to what the car is worth/WBAC will give you for it.
Settle the finance on both and sell the cars.


Or sell the HP one to WBAC, and chip in the difference to the settlement figure, then take the PCP car to a dealer who will settle the finance and roll the negative equity into a very very expensive new PCP if you absolutely must get another.


The least cost option would most likely be to sell the HP one to WBAC and chip in the extra, then continue the PCP until the VT point is reached and hand it back.


I personally would decide on the one I liked the best and keep it, and then settle & sell the other.

DD1A

I appreciate your response, would a dealer take both for exchange with one expensive car?

facade

They might, but you are asking them to settle the finance on two cars, and roll that into your new deal as negative equity.

They might rub their hands in glee at the interest they can charge you, I have no idea I'm afraid.

DD1A

But luckily they’re both under vwfs so they maybe able to work something out.