Thinking of PCL but what about current car?

NSmith

Hi,

I'm looking at changing my car in the next few months, my current one is on PCP but my brother has told me that he just got his on PCL and that I should think about going down that line instead. I have done some searching and although it looks good I was wondering how I could solve the issue of my current car as I understand that with PCL you don't trade in your current car.

Presently I am on PCP and I have 15 months left on my finance, by July I will be very close to having no negative equity on the car. I am not in a financial situation to be able to pay off all of the remaining payments so not sure what I would have to do if I did go down the PCL route.

Would the lease company trade in my car or would I have to look at selling in seperatley in order to pay off the remaining balance?

Any help or advice would be very much appreciated.

Neil

AdrianC

The dealer that you get the leased car from may well take your old car into stock. Leases are normally 3x monthly payment up front. If your old car is in -ve equity, then you'll need to pay the dealer that -ve equity plus the upfront.

Why is your current car a "problem" that can be solved by spending more money to get a different one?

NSmith

There's no real problem with my current car I just want to upgrade in a sense before the preset mileage per year runs out. So just looking at differerent options

AdrianC

NSmith said:

There's no real problem with my current car I just want to upgrade in a sense before the preset mileage per year runs out. So just looking at differerent options

The simplest and easiest way to resolve the issue, if your use has changed since you took the PCP on, is to simply speak to the financier and ask about upgrading the contracted mileage. Alternatively, pay the per-mile extra at the end of the term, if you're handing the car back.

How much over do you think you'll be, and how much per mile?

DrEskimo

The cheaper option will be just to buy your current car and then have no mileage restrictions or worries about having to change car at the end of a 'deal'. 

But to answer your question, find whoever will offer you the best price for your car. Try as many different garages or online brokers as you can and get a range of prices to just buy your car and clear the finance. They will settle the finance and you will either have to pay the negative equity or they will give you the positive equity. 

You will get more selling privately, but that requires settling the finance first.

Ectophile

Before you start the PCL, do check how expensive it will be to get out of it early.  They can be very inflexible when compared with credit purchases.

The_Rainmaker

Do nothing and hunker down for the next 6-12 months.

[Deleted User]

I wouldn't like to try and sell a car now. 

NSmith

That's all for your comments and advice. I took a couple of days to have a good think about things and I'm just going to leave things as they are right now. I will, as I have done for the last 6 months, keep an eye out on car prices and also reseacrh other cars that may take my eventual interest.

Thanks again