pcp loan help

j3nnavieve

In May 2015 I bought a fiat 500 on finance as my car broke and I wanted something nice for work.

I put down a £300 deposit and agreed to pay £134.54 a month.

In May I still had £5803.42 to pay off but I'm really beginning to hate the car and I would like to get a new one shortly. However I do not have the settlement fee to get out of the loan.

I know that in March next year I can voluntary terminate my contract as I would have finally paid over half. Is it best to just wait?
What happens when you voluntary terminate?

If I take it back to the dealer to get a new car do they add this existing loan to a new car?

Thanks

ratrace

Can i ask why do you hate the car, is it a problem with the seats or something that can be bought from a factors to rectify the issue or is it that its just too small for your needs, ive seen a lot about they seem to be very popular with young/new drivers and some quirky colours



its always cheaper (mse) to run the car you have into the ground than keep getting new pcp's/loans

foxy-stoat

You can VT at anytime - you just need to pay off 50% of the total amount of the purchase price when you do. Speak to the finance company for your options.

Buy the car you actually like/want/afford - maybe its best to get a loan for what you can afford to pay back over 3 years and buy a car with that.

Willing2Learn

Just 'buy out' the agreement and pay the 50% balance so that you can VT the agreement.

DrEskimo

What's the settlement now, about £5,500?

Don't know the exact spec/colour/options, but 15plate Fiat 500's with average mileage seem to be up for around £5k private. So that leaves you with an additional £500 to cover the remaining finance. What kind of trade in prices have you got from WBAC and the like (try Tootle as well)?

In any case, I work out that trying to sell for £5k will be the cheaper option:

£300 deposit, + 39 payments @ £134.54 + £500 negative equity = £6,000 in total.

If you VT is in March next year, that will be £300 deposit + 46 payments @ £134.54 = ~£6,500 in total.

Will save you about £500 to sell now. If you think you won't get much more than £4,500, then makes sense to just VT. Either drive it till march and then do it, or pay the ~£900 odd now and get rid. Seems a bit daft to pay early though when it will cost the same. Might as well keep the car and drive it for 7months. Unless you hate it that much..?

Maybe look at used with cheaper/no finance next.... :P

Smellyonion

Why on earth would you pay back half of the amount just to get out of the contract, you would lose months of use of the car (from now until March).


If you naturally reach the 50% mark in March, wait till March. It really isn't that far away. Hand the car back, pay nothing.

DrEskimo

Smellyonion wrote: »

Why on earth would you pay back half of the amount just to get out of the contract, you would lose months of use of the car (from now until March).


If you naturally reach the 50% mark in March, wait till March. It really isn't that far away. Hand the car back, pay nothing.

Not to mention that it is just 2months before the end of what I imagine is a 48month PCP?

So essentially hand the car back in March, or rent a Fiat 500 for £134.54pm for a couple of months? That's about the rate you would pay to hire a little car per week form the likes of enterprise, etc.!

iolanthe07

Can i ask why do you hate the car,



Though the manual Fiat 500 is a pretty decent car, it may be a model with the appalling jerky electro magnetic clutches often fitted to small European 'automatics' in place of a proper torque converter.

Herzlos

When does the PCP term actually run out? Not long after March, I assume?

j3nnavieve

ive simply had a million and one problems with it since the warranty ended, its not what it looks like, I love the look of it, just hate driving it