Car PCP - help!

TheCaptain1985

Hi there

I have a car which I got 1 year ago on a 3 year PCP, with a 9000 mile a year limit.

I have just changed jobs, and this won't work any more as my mileage will double / triple a year.

My new firm have given me a company car but I can return it if I wish.

I have been trying to sell the car but I am getting no where near the value which is remaining on the finance.

Remaining finance - £12780
Valuation (private sale) - £12500

I have listed the car on eBay, Gumtree, Facebook, Wizzer, and Autotrader. Closest I got was £7300 on eBay.

I have contacted loads of garages locally and the nearest I've had is about £10000.

But using the webuyanycar equivalents, I've got an offer of £11223, which means I'll have to find £1558 to cover the difference.

If I keep the car, and do the miles I'm predicting I will do, I will incur a change of around £3700 in excess mileage.

I have spoken to Ford Credit but they just tell me that its either pay it all off, or hand it back in 2 years.


SO, my question:

Do I:

1 - Sell the car and pay off the difference of £1558.

2 - Keep the car for 2 more years and pay the £3700 ish mileage penalty

3 - Stop paying for the car and get it repossessed by Ford (not really what I want to do, and I'd rather not have a credit rating hit).

4 - Do something else which you lovely people come up with?


Thanks in advance

PS - Anyone want to buy a car? :rotfl:

TadleyBaggie

The car isn't yours to sell. Until the final balloon payment has been made the car belongs to the finance company.

AnotherJoe

Will you get any money from the company if you dont take the company car?
If so, will that compensate (after tax) for the lost £4k?
If you did take the company car, how much in tax would you have to pay and how would that compare to the £4k?

TadleyBaggie

When I got a company car I kept my existing car, which turned out to be a good move as I:

- Kept my insurance NCD valid
- When I left the job two years later I had a car available

However in my case there was no finance on the car which made it a cheap option.

TheCaptain1985

TadleyBaggie wrote: »

The car isn't yours to sell. Until the final balloon payment has been made the car belongs to the finance company.

Thank you for your reply and that's a good point, but I've had a settlement figure from Ford Credit which is the £12780.

I think thats because my monthly payments are £199 a month at present if i did the 3 years would pay off £7164, and then the remaining balance (£5616) would be the balloon payment.........I think????

TheCaptain1985

AnotherJoe wrote: »

Will you get any money from the company if you dont take the company car?
If so, will that compensate (after tax) for the lost £4k?
If you did take the company car, how much in tax would you have to pay and how would that compare to the £4k?

Thank you for your reply.

No, they offer a company car, but no car allowance.

The company car works out about £2k a year in tax, which is roughly the same I'm paying now for the Fiesta (£2388 a year). So in taking the company car I can get a better car, not worry about miles or upkeep and pay about the same.

TheCaptain1985

TadleyBaggie wrote: »

When I got a company car I kept my existing car, which turned out to be a good move as I:

- Kept my insurance NCD valid
- When I left the job two years later I had a car available

However in my case there was no finance on the car which made it a cheap option.

Thank you for your reply.

That does sound like a good option to have had.

Good point on the insurance, but if I take the company car, I will just alternative with my wife on who takes out the policy on her car each year to keep my NCD up.

Niv

TheCaptain1985 wrote: »

Thank you for your reply.

No, they offer a company car, but no car allowance.

The company car works out about £2k a year in tax, which is roughly the same I'm paying now for the Fiesta (£2388 a year). So in taking the company car I can get a better car, not worry about miles or upkeep and pay about the same.

It is a shame the company do not offer an allowance.


If your PCP'ed car is just for your use (you suggest your wife has her own car) and your new company car can also be used for personal use (which it should as you say you pay tax on it) then I would be inclined to get rid of the PCP car asap. You will make a loss yes, but how does that balance against any interest you are paying for the car?

TheCaptain1985

Niv wrote: »

It is a shame the company do not offer an allowance.


If your PCP'ed car is just for your use (you suggest your wife has her own car) and your new company car can also be used for personal use (which it should as you say you pay tax on it) then I would be inclined to get rid of the PCP car asap. You will make a loss yes, but how does that balance against any interest you are paying for the car?

Thank you for your reply.

Yes the company car can be used for personal use.

I think you're right, I'm just trying to minimise the loss on my PCP car. I'm not sure on the exact amount in interest, but at the min I am looking at having to spend about £1700 to get rid of it (gone up since original post) so that will be around the same with interest I would have thought.

Andyjflet

I work in car finance for a dealer.

If you trade it again in 3 years for a new car then they will just value it at the time, the only time you will pay the overmileage is if you hand it back to Ford Finance.

My advice is to then trade it in a couple of years and get another one with a more accurate mileage.

Other option is to trade it now and pay the finance company the balance owed in total, even with a deficit.

TheCaptain1985

Andyjflet wrote: »

I work in car finance for a dealer.

If you trade it again in 3 years for a new car then they will just value it at the time, the only time you will pay the overmileage is if you hand it back to Ford Finance.

My advice is to then trade it in a couple of years and get another one with a more accurate mileage.

Other option is to trade it now and pay the finance company the balance owed in total, even with a deficit.

Hi and thanks for your reply

I should have said in my original post, I would like to join the company car scheme as that means I don't have to think about wear and tear, tax, service etc

So I wouldn't be trading it in for another car in 2 years.

What do you think with the new info?

Thanks