Options when settle PCP early (positive equity)

DrEskimo

AdrianC wrote: »

Yes, the keys-back-and-walk-away figure, whether it's strictly VT or not. Yet the OP appears to think that'll see them driving away in the car.

It is entirely feasible it is the settlement figure for the OP to drive the car away. Loan fully settled, now own the car settlement. Not VT.

Nobbie1967

DrEskimo wrote: »

It is entirely feasible it is the settlement figure for the OP to drive the car away. Loan fully settled, now own the car settlement. Not VT.

I think Adrian's right, as the OP currently thinks can walk away with a new i10 for £4000 plus their payments to date of £1900. If you can buy a new i10 for £5900 and delay most of the payment for 18 months, where do I sign up:beer:

DrEskimo

You're forgetting the deposit.

To get to around £106 per month would require about £5k upfront based on a 37month term and 27k miles per annum. Of course this doesn't have to be all the OPs own money. It could be a mixture of deposit contribution from Hyundai finance (currently £1000), P/X value and money upfront.

The list price starts from £9k before discounts, so again, £4k is too high for the GFV and an additional £4k is far too high to reach the VT on top of what's already been repaid from deposit/monthlies. Looking at Hyundai's PCP calculator and using a loan settlement calculator, the settlement at this point would be about £4k.

Catta_coombes

Thanks for sharing your experience amadavat. I'll keep my options open about who to sell to as the rough figure above is fairly optimistic.

To clear up the little argument going on DrEskimo is right (thanks for having my back) I am not talking about the GFV which is £2700 ish. This being payable at the end of the contracted payment to buy the car. And I did have a large deposit of something like £3000 from an old car and I got a good deal on the new car at around £8500 + some contributions. (I highly recommend Carwow for new cars)

If you want to end a PCP contract early you are right a voluntary termination is an option after 50% is paid but this should only be done if you absolutely cannot keep up with payments and you have no other option (as a debt solution) as you wouldn't be paid any extra money you literally give the car back (pay damage and extra milage) and then you are done with it all. If anyone is considering this please get debt advice first.

Another option is to settle the finance which is paying off the outstanding balance. For me, it is something like £4500 which is the total amount of fiance + interest to date - payments already made. If you settle your finance you own the car and can do what you want. For me as it is worth more than the settlelment, I am looking to sell it either back to the dealer/finance company or another buyer who is willing to settle the finance for me as part of the payment.

Catta_coombes

Anyway, thanks for all the support so far guys it has helped me structure my options.

I am talking to the finance company now and going to see what deals I can get and see if it's worth it.

DrEskimo

Catta_coombes wrote: »

To clear up the little argument going on DrEskimo is right (thanks for having my back) I am not talking about the GFV which is £2700 ish.

Pleasure.

Quite bizarre to enter the discussion on the assumption that you didn't understand what you were writing, but there we are. Of course if you took a second to think about it logically, VT typically occurs around month 30 on a 36month deal, so with only £1,900 until you complete the full term, how could it possibly be an additional £4k to just reach VT??

I won't hold mine or your breath for an acknowledgement that they were in fact mistaken....last discussion I had with another poster, he even went as far as to belittle me that they knew more about EV battery technology than me, and when it was clear they were talking nonsense they just go eerily quiet....

Best of luck with the car. If you did want to purchase it and do a private sale, could you look at money transfer credit cards? Almost certain you can't clear the balance with the card itself, but could transfer the money from a money transfer card, and then pay that back after selling:

https://www.moneysavingexpert.com/credit-cards/money-transfers/#tesco

Would cost about £136 in fees though.