After some PCP advice please.

aaron125

Hello fellow MSE people,

Around two years ago i bought a Audi A1 on PCP as there was no future plans of owning a home in the foreseeable future and i lived around a 10-15 minute drive from work and around 30 minutes from my partner.

Fast forward two years i now own a home with my partner and live around a 5 minute walk from work, i was looking for some advice on how to get out of the PCP or take as less of a hit as possible.

Ive tried the following:

Selling back to dealer (offered me £3000 less than settlement).
Selling to local dealers (only marginally better).
Selling to dreaded "webuyanycar" type dealers (not much better but i know theyll knock off money here and there).
It is not as the positive equity mark so i cannot just terminate and hand the car back.

I have thought about selling privately and trying to get as much back as poss and maybe taking a small hit of up to around £1000 which i am okay with. Im aware selling a car with outstanding finance is difficult also.

Any other ideas?

Thank you
Aaron

neilmcl

Voluntary terminate the agreement. You'll no doubt have something to pay to get to the 50% mark of the total amount payable.

aaron125

neilmcl wrote: »

Voluntary terminate the agreement. You'll no doubt have something to pay to get to the 50% mark of the total amount payable.

Unfortunately that is around the £3000 mark aswell, which I do not have right now, I only have around £1000 to spare. Thank you anyways!

tonyh66

keep paying the monthlies until you get to the VT point.

E30M3

aaron125 wrote: »

I have thought about selling privately and trying to get as much back as poss and maybe taking a small hit of up to around £1000 which i am okay with. Im aware selling a car with outstanding finance is difficult also.

If you can pay the finance off with an interest free credit card to bridge the gap whilst you sell privately then you resolve that issue and make it more attractive to potential buyers.

AdrianC

aaron125 wrote: »

Around two years ago i bought a Audi A1 on PCP

You haven't bought it. You have the option to buy it at the end of the PCP - until then, you're renting it.

i was looking for some advice on how to get out of the PCP or take as less of a hit as possible.

Ive tried the following:

Selling back to dealer (offered me £3000 less than settlement).
Selling to local dealers (only marginally better).
Selling to dreaded "webuyanycar" type dealers (not much better but i know theyll knock off money here and there).

You cannot sell it. It's not your car.

If you do find somebody willing to buy it from you, then you will need to buy it from the financier so you can sell it on. The financier are not going to sell it to you below market value, and you are not going to sell it above market value.

It is not as the positive equity mark so i cannot just terminate and hand the car back.

You're going to have to pay them one way or another...

Quite simply, the car has depreciated far more in the early part of the life, and you haven't paid enough to cover the cost of you having it. Over the remainder of the contract, the depreciation will be less than your monthly payments, so the amount you pay will "catch up" with the cost. If you terminate early, then you need to make that difference up with cold, hard cash.

aaron125

AdrianC wrote: »

You haven't bought it. You have the option to buy it at the end of the PCP - until then, you're renting it.

Put your fishing rod away, and that tackle back in the box.

AdrianC wrote: »

You cannot sell it. It's not your car.

If you do find somebody willing to buy it from you, then you will need to buy it from the financier so you can sell it on. The financier are not going to sell it to you below market value, and you are not going to sell it above market value.



You're going to have to pay them one way or another...

Quite simply, the car has depreciated far more in the early part of the life, and you haven't paid enough to cover the cost of you having it. Over the remainder of the contract, the depreciation will be less than your monthly payments, so the amount you pay will "catch up" with the cost. If you terminate early, then you need to make that difference up with cold, hard cash.

How is it that you have written such a large post but not actually managed to help in any way, shape or form like the more brief posts on this thread? :T

DrEskimo

Private sale is the best way to maximise the resale value, but it's not without its challenges given you need to clear the finance first. Trusting a random stranger when transferring large sums of money is tricky at the best of times, without having to throw in clearing finance!

Is it possible to borrow the money from somewhere to clear the finance and then sell? Appreciate you are taking the risk, but would make it much easier.

Alternatively you can try Tootle.com. I sold my Audi S5 on there that was coming to the end of its PCP, and got a very good price from a dealer after a bit of haggling.

Otherwise I would just soldier on with the payments and then reassess the settlement vs. trade value as you approach the VT point. Then you can decide which option works best.

aaron125

DrEskimo wrote: »

Private sale is the best way to maximise the resale value, but it's not without its challenges given you need to clear the finance first. Trusting a random stranger when transferring large sums of money is tricky at the best of times, without having to throw in clearing finance!

Is it possible to borrow the money from somewhere to clear the finance and then sell? Appreciate you are taking the risk, but would make it much easier.

Alternatively you can try Tootle.com. I sold my Audi S5 on there that was coming to the end of its PCP, and got a very good price from a dealer after a bit of haggling.

Otherwise I would just soldier on with the payments and then reassess the settlement vs. trade value as you approach the VT point. Then you can decide which option works best.

Thank you DrEskimo, It seems like the option is to wait until its a lot closer to being able to call it quits with the vehicle, thank you for your positive input.

Mercdriver

aaron125 wrote: »

Put your fishing rod away, and that tackle back in the box.



How is it that you have written such a large post but not actually managed to help in any way, shape or form like the more brief posts on this thread? :T

From the tone of your post, you aren't as new to this forum as your post count makes out.

Adrian C isn't exactly correct. You can sell the car, and most lenders will allow it by the buyer paying the money to them to remove their interest in the car. However no one sensible is going to do that if there is more owing on the car than they are paying for it. Now if you were to pay the difference, then it would be sorted.

The suggestion to get an interest free card to pay off the balance is a good one, but you would need a pretty hefty credit limit to buy it. You could, however use such a card to pay off the difference between what you can get for it private sale and the settlement figure at that time.

aaron125

Mercdriver wrote: »

From the tone of your post, you aren't as new to this forum as your post count makes out.

Adrian C isn't exactly correct. You can sell the car, and most lenders will allow it by the buyer paying the money to them to remove their interest in the car. However no one sensible is going to do that if there is more owing on the car than they are paying for it. Now if you were to pay the difference, then it would be sorted.

The suggestion to get an interest free card to pay off the balance is a good one, but you would need a pretty hefty credit limit to buy it. You could, however use such a card to pay off the difference between what you can get for it private sale and the settlement figure at that time.

Hello Merc,

Yeah i browse these forums every now and then for a lot of great advice and very occasionally post.

Thank you for your advice, it would be a case of trying to get the settlement price for the car and basically trying to walk away with no gain or loss, ive read a lot regarding selling a vehicle with PCP on the car and as stated in my original post, i know it will be hard to sell and get someone to pay the finance company rather than me paying them and hoping it sells.

In regards to the 0% credit card option, it is very unlikely to get a credit card with a £10k+ limit from the get go.

Thank you for your suggestion and positive input