PCP considerations (near ending)

Espresso79

I bought a mini s on a PCP deal (48 months) about this period in 2015 from a mini dealer. The car was one year old with 8k miles. I basically covered my PCP deal with my employer's car allowance scheme (had to prove I had the car to get onto the scheme) although I didn't need it for work and my total mileage after all these years has been just above 12k. I am now close to my third year (36 months) and was considering returning the car as new employer offered better economic conditions (and no mandatory car allowance). Although the car is an absolute joy to drive and see

I have been in touch in July with the mini dealer and they offered to take the car back and cover/close the remaining finance agreement but I though the car had more value (positive equity). I have initially put down a deposit of 2K.

What would be your recommendation? When would be the best time to discuss bearing in mind car insurance and MOT are due in the first week of October?

foxy-stoat

Work out how much it will be to own outright, remaining payments + balloon and find out the market value.

You may find that due to the mileage and condition you would be better off keeping it and buying it outright at the end.

motorguy

foxy-stoat wrote: »

Work out how much it will be to own outright, remaining payments + balloon and find out the market value.

You may find that due to the mileage and condition you would be better off keeping it and buying it outright at the end.

There will be discount applied to that. Better to ring the finance company and ask for a Settlement Figure.

Espresso79

Thank you for answering.
Remaining payments + balloon are about 12. 5k, while market value I believe would be around 2k more considering car is immaculate!

I am tempted to hand the car back considering the very low usage done and expected.

facade

Espresso79 wrote: »

Thank you for answering.
Remaining payments + balloon are about 12. 5k, while market value I believe would be around 2k more considering car is immaculate!

I am tempted to hand the car back considering the very low usage done and expected.

As Motorguy says, if you ring the finance people and ask for a settlement figure it will be lower, probably nearer £12k.


So the dealer is offering to clear the £12k, and they will make £2k selling it, which seems reasonable if you want shot of it with zero hassle.


That will leave you with no car, and no money to buy one, but if you don't need a car why have one?
I reckon I could have a taxi to do my shopping each week for less than the tax & insurance on my car, but I like the imagined "freedom" and "independence" of having a moneypit on the drive.

wgl2014

Espresso79 wrote: »

Thank you for answering.
Remaining payments + balloon are about 12. 5k, while market value I believe would be around 2k more considering car is immaculate!

I am tempted to hand the car back considering the very low usage done and expected.

Why would you be tempted to hand back a car worth £14.5k to clear £12.5k debt?

If the figures stack up then buy the car and if you don't want it then sell it on. Double check the figures though.

Svein_Forkbeard

wgl2014 wrote: »

Why would you be tempted to hand back a car worth £14.5k to clear £12.5k debt?

If the figures stack up then buy the car and if you don't want it then sell it on. Double check the figures though.

Who is the OP going to sell it to?

Too expensive for most folk to buy privately, if the OP trades it in the the dealer will still be looking fore a turn.

You then have to price in the hassle factor and decide whether a bird in the hand is worth more than two in the bush.