Car on PCP can we go anywhere after term is up

Youcancallmejane

We have approximately 6 months left on our PCP, when it's time to change do we have to go through nissan where we took the car out with or could we go say to a vauxhall, ford garage etc.
Thanks for your help

motorguy

Youcancallmejane wrote: »

We have approximately 6 months left on our PCP, when it's time to change do we have to go through nissan where we took the car out with or could we go say to a vauxhall, ford garage etc.
Thanks for your help

You can go anywhere you like. They may well be interested in your car as a trade in rather than you having to hand it back, which might work out better all round as they may give more than the residual.

AdrianC

At the end of your PCP, you have two options...
Hand the car back and walk away.
Buy the car from them for the balloon figure.

If you choose the second, you can then sell it immediately, if you so choose.

There is zero obligation to do anything more with the manufacturer or finance house or dealer than pick from those two options.

neilmcl

Youcancallmejane wrote: »

We have approximately 6 months left on our PCP, when it's time to change do we have to go through nissan where we took the car out with or could we go say to a vauxhall, ford garage etc.
Thanks for your help

First thing you'll need to do is find out if there's any equity in the car, or possibly more likely any negative equity. If the latter then any dealer will want to roll that into your next finance deal, assuming that's what you're going for but in that scenario you'd be better off simply handing the car back anyway.

motorguy

AdrianC wrote: »

At the end of your PCP, you have two options...
Hand the car back and walk away.
Buy the car from them for the balloon figure.

If you choose the second, you can then sell it immediately, if you so choose.

There is zero obligation to do anything more with the manufacturer or finance house or dealer than pick from those two options.

Thats quite misleading. The most common route is to simply trade the car in against another and have the dealer clear the finance (which may well be just the residual payment if its completely at the end of term). No need to buy the car from them and resell it immediately - that would be plain daft.

motorguy

neilmcl wrote: »

First thing you'll need to do is find out if there's any equity in the car, or possibly more likely any negative equity. If the latter then any dealer will want to roll that into your next finance deal, assuming that's what you're going for but in that scenario you'd be better off simply handing the car back anyway.

Any dealer would be simply saying hand the car back if its worth less than the final payment. No need at all to even consider the situation of having to roll negative equity in to another deal as its wholly not relevant.

AdrianC

motorguy wrote: »

Thats quite misleading. The most common route is to simply trade the car in against another and have the dealer clear the finance (which may well be just the residual payment if its completely at the end of term). No need to buy the car from them and resell it immediately - that would be plain daft.

IF you want another car from that dealer... And, of course, you don't need to wait for the end of the finance period for them to do that, they'll be happy to tuck you up at any stage...

motorguy

AdrianC wrote: »

IF you want another car from [STRIKE]that[/STRIKE] ANY dealer... And, of course, you don't need to wait for the end of the finance period for them to do that, they'll be happy to tuck you up at any stage...

EFA

The O/P has already told us they want to change to another (new) car and from a dealer.

Advising them they need to buy the car off the finance company and then resell it immediately under those circumstances is at best misleading and at worst plain nonsense.

Oh, and sorry to hear if you've previously got "tucked up" by a dealer. Not all of us do.

Post on here and we'll see if we can help you next time.

AdrianC

If you take your PCP'd Ford into a Volkswagen dealer, how are that VW dealer settling the PCP? They're buying it off Ford finance by paying the balloon.

neilmcl

AdrianC wrote: »

If you take your PCP'd Ford into a Volkswagen dealer, how are that VW dealer settling the PCP? They're buying it off Ford finance by paying the balloon.

Precisely, they (the dealer) will settle the finance on behalf of the OP and if there's negative equity that will be rolled into the next deal. Pretty much standard practise. They "may" advise the OP to hand the car back themselves but not all dealers will.

AdrianC

Great, so we're all agreed that there are two options at the end of the PCP - it gets handed back, or it gets bought off the finance for the balloon amount...