PCP Next Steps Advice

FloralFox

Hi All,


I have PCP finance on my car, which is due to end in June 2020. I am not looking to purchase the car, and currently my mileage is set to go over the agreed limit (approx. 500-1000 miles over).


I currently have a SEAT and would like to trade it in at my local Hyundai garage for an i10. I am able to give the car back kind of any point now, however I have absolutely no idea how the trade in would work? or how it affects the value of car/ the deposit for the next vehicle. If someone could please explain to me the process of trading in a PCP car that would be much appreciated.


Also, is there much point in me waiting until June 2020 to do this?


(The estimated value of my car at the end of the agreement is about £5,500 and the car I was to get costs around £5,500 I don't know if that is relevant)


Thanks in Advance!

AdrianC

Effectively, the garage that you PX the car with will obtain the settlement figure from the finance house, and pay them, thereby buying the car from them and ending your PCP agreement.

If the settlement is more than the amount they're paying for it, then you'll roll that debt into your new car purchase. If it's less, then the surplus should go towards the purchase.

Because the car isn't going back to the financier, the mileage and condition are irrelevant - but they'll obviously affect the PX value. The balloon isn't particularly relevant, either, because it's the settlement-now value that's being used.

You can get a settlement figure at any stage in your PCP, so there's no difference in waiting for next June.