PCP finance help

ronken2012

I bought a new car on a PCP finance deal almost four years ago, during which time my credit score has taken a dive. At time of purchase my options given to me by salesman where the usual,
1. Hand car back walk away
2. Part exchange and enter new deal
3. Pay balloon payment
4. Refinance balloon payment with manufacturers finance.
A few weeks ago I got contacted by dealership about a part exchange deal. I visited showroom picked the new car. But on applying for the new deal my finance was declined. Even though through same dealership / finance as my current deal which I never missed a payment in almost four years.
I don't have the cash to pay balloon payment, it's now unlikely the manufacturer will refinance my balloon payment, and I have since been declined a personal loan to fund the balloon payment.
So it looks like my only option is to hand the car back and walk away. This is something I don't want to do as I have made a hefty initial deposit plus almost 48 monthly payments which I don't want to walk away from. A car is essential for me to get to work as I commute quiet a distance with no regular public transport. I can comfortably afford similar or even increased monthly payments for a new deal.

Has anyone else had a similar change in credit score while in a PCP deal and is there any other option apart from hand the car back?

sheslookinhot

I think the key here is why you can "comfortably " afford increased monthly payments but your credit score has taken a "dive". Something not quite adding up.

Regular HP payments should be underpinning your credit score.

BoGoF

Have you checked your credit files?

Bottom line is if you can't get a loan or get a new deal then the car will be going back.

DoaM

I wonder if the OP got a court claim for a private parking charge, ignored it (or never received the claim - e.g. moved house since the date of the incident and the PPC filed against the original address rather than engage any form of tracing) and got a default CCJ against them?

This scenario can lead to what is called "credit clamping" (rather than physical wheel clamping). If OP checks credit files this should be obvious if a CCJ was the cause. If it is what I've suggested above then OP could look at getting a set-aside to remove the CCJ and reset the claim to its beginning. This would repair the OP's credit file.

Cornucopia

ronken2012 wrote: »

1. Hand car back walk away
2. Part exchange and enter new deal
3. Pay balloon payment
4. Refinance balloon payment with manufacturers finance.

Just to clarify slightly:-

2. Part exchange with any dealership/any manufacturer.

3(b). Pay balloon payment and sell vehicle.

4. Refinance the balloon payment with any lender/fund from savings.

Penelopa.Pitstop

ronken2012 wrote: »

So it looks like my only option is to hand the car back and walk away. This is something I don't want to do as I have made a hefty initial deposit plus almost 48 monthly payments which I don't want to walk away from.

Is the car worth more than baloon payment? Is it even worth buying it out?

lopsyfa

ronken2012 wrote: »

I bought a new car on a PCP finance deal almost four years ago, during which time my credit score has taken a dive. At time of purchase my options given to me by salesman where the usual,
1. Hand car back walk away
2. Part exchange and enter new deal
3. Pay balloon payment
4. Refinance balloon payment with manufacturers finance.
A few weeks ago I got contacted by dealership about a part exchange deal. I visited showroom picked the new car. But on applying for the new deal my finance was declined. Even though through same dealership / finance as my current deal which I never missed a payment in almost four years.
I don't have the cash to pay balloon payment, it's now unlikely the manufacturer will refinance my balloon payment, and I have since been declined a personal loan to fund the balloon payment.
So it looks like my only option is to hand the car back and walk away. This is something I don't want to do as I have made a hefty initial deposit plus almost 48 monthly payments which I don't want to walk away from. A car is essential for me to get to work as I commute quiet a distance with no regular public transport. I can comfortably afford similar or even increased monthly payments for a new deal.

Has anyone else had a similar change in credit score while in a PCP deal and is there any other option apart from hand the car back?

Try and talk to the current finance company about financing the balloon. They may not do a credit check since you are already a customer and have kept up with your payments. That may even be better for you than entering in a never ending PCP finance deals as you will own the vehicle at the end.

Robby1988

lopsyfa wrote: »

Try and talk to the current finance company about financing the balloon. They may not do a credit check since you are already a customer and have kept up with your payments. That may even be better for you than entering in a never ending PCP finance deals as you will own the vehicle at the end.

I would go with this option too, assuming your current car is otherwise fine.

Forget the novelty of a new car, do this and viably in 2 years you'll be free of monthly car payments. :T