Trading in a car on PCP

Frosticlez

Hello, so I bought a brand new Vauxhall corsa energy at the beginning of the year. I was wondering once I’ve had it a year and I’ve got my years no claim from the insurance I was wondering if it was possible to trade it in to say Audi or BMW for a bigger car. I know it’s brand new so I would loose a lot of money but just wanted to know how it works. If they valuated it at 10k for example could I straight swap my car for an Audi that’s also 10k and then keep paying the pcp or do I have to sell it to Audi get the 10k and then use that to pay back Vauxhall finance. But if I owed 14k how do I pay that 4k difference or can I only pay that up front? Any help is appreciated cheers

AndyMc.....

Frosticlez wrote: »

Hello, so I bought a brand new Vauxhall corsa energy at the beginning of the year. I was wondering once I’ve had it a year and I’ve got my years no claim from the insurance I was wondering if it was possible to trade it in to say Audi or BMW for a bigger car. I know it’s brand new so I would loose a lot of money but just wanted to know how it works. If they valuated it at 10k for example could I straight swap my car for an Audi that’s also 10k and then keep paying the pcp or do I have to sell it to Audi get the 10k and then use that to pay back Vauxhall finance. But if I owed 14k how do I pay that 4k difference or can I only pay that up front? Any help is appreciated cheers

Why not go straight for a Mazda?

Svein_Forkbeard

I'm just flabbergasted........best I say no more!

Frosticlez

Why’s that?

facade

You simply go to a dealer and take out another PCP on the car that you want. The dealer settles your finance, and adds the "negative equity" to the new PCP. (Whilst rubbing their hands with glee at the thought of the commission they get out of it)


You meanwhile end up paying more and more interest.....


Best is to keep paying your existing PCP until the VT point, and then VT it and start another PCP for the car you really want, or keep your car until the end of the PCP, at which point you might get more trade-in than the final payment, or you hand it back and start again.

bearcat16

Just my tuppenceworth...

You will usually get more money selling privately AND negotiating with no existing PCP is easiest too, so, this would be what I’d do:

Get a settlement figure for your PCP from the finance company. Let’s say it’s £10k.

Find out how much your new car costs, say it’s £15k

Take out a personal loan from a bank like Tesco etc (or your own bank) for £15k, interest rate will be about 3.3% if you’ve got decent credit.

Then, pay off the PCP with the Tesco loan. You can now sell your car privately with no finance outstanding on it.

Then go and buy your new Audi or BMW or Mazda or whatever, using the sale proceeds and remainder of the Tesco loan.

motorguy

Frosticlez wrote: »

Hello, so I bought a brand new Vauxhall corsa energy at the beginning of the year. I was wondering once I’ve had it a year and I’ve got my years no claim from the insurance I was wondering if it was possible to trade it in to say Audi or BMW for a bigger car. I know it’s brand new so I would loose a lot of money but just wanted to know how it works. If they valuated it at 10k for example could I straight swap my car for an Audi that’s also 10k and then keep paying the pcp or do I have to sell it to Audi get the 10k and then use that to pay back Vauxhall finance. But if I owed 14k how do I pay that 4k difference or can I only pay that up front? Any help is appreciated cheers

This is the financial equivalent of blowing your brains out.

Expect to be offered approx 60% of what you paid for the car and expect to owe at least 90% of what you paid for the car, so at a guess you will be probably £4,000 in negative equity as you say.

You'll need to clear that, and then you'll be going in to another deal whereby chances are you'll accrue probably a further £8,000 of negative equity in the first year.

If you can afford that massive loss on the whim of "fancying a change" then great but i suspect you cant.

AdrianC

Frosticlez wrote: »

...once I’ve had it a year and I’ve got my years no claim from the insurance...

This is the important bit of the original post.

motorguy

AdrianC wrote: »

This is the important bit of the original post.

Yes i think the O/P is using that as justification for blowing his brains out changing the car.

Madness.

AdrianC

I simply read it as new-driver naivety stirred gently with fear of horrendous insurance premiums. After all, the monthly DD for the premium could well be larger than the monthly DD for the PCP...

motorguy

AdrianC wrote: »

I simply read it as new-driver naivety stirred gently with fear of horrendous insurance premiums. After all, the monthly DD for the premium could well be larger than the monthly DD for the PCP...

Is there free insurance on Audis and BMWs at the minute?

If so then yes, there may be merit in jumping to another free insurance deal, however i read it as now the O/P had a years bonus behind them and a year older they were looking to bail on the Corsa

Any new BMW or Audi is going to be north of £20K so even with free insurance you're likely to accrue £5K+ of negative equity in the first year of any deal there so the approach isnt sustainable.