Advice needed on end of PCP finance

Jonesya

Taygb97 said:

Hi @Jonesya, thanks for your assistance, your comment is really appreciated!

I would be in exactly the same mindset, however:
The car is 9 years old, I'm the 2nd owner;
Is a 2 seater convertible (I now want 5 doors);
For the mileage I do, the running costs (service, tax, fuel) aren't worth paying and a more economical car is sought;

Yes I agree, I'd hand it back - £9,100 is a lot to pay for a 9 year old car, for day to day motoring. Plus it won't just cost you that, it is reaching the age when it will start to need more major repairs which make sense if you already own it and it owes you little, but to shell out £9k to buy it and buy a load of problems, no I'd move on.

AdrianC

Jonesya said:
£9,100 is a lot to pay for a 9 year old car, for day to day motoring.

Given that we have absolutely no idea what the car actually is...

DrEskimo

Taygb97 said:

Hello,

This is my first post so I do hope I have done everything correctly!

I have a car on PCP finance that is due to end in September 2020. The balloon payment is £9,100, however, the car is only worth £7,800 now so expect this figure to drop even further come September. With this in mind, the option to pay the 'balloon-payment' isn't worth it as far as I can see.

Currently, I have found a car that I want, however, my settlement figure is £9,600 and px value is £7,800. Leaving me to pay the £1800 difference if I part exchanged it with the dealer.

Theoretically, I can wait until the end of the agreement and hand the car back with nothing to pay, letting the finance company take the hit, however, I'm not sure if it this simple as I haven't financed a car before.

My plan is to dispose of this car (part exchanging, selling or handing back) and then buy a new car on a low-interest personal loan that I will then be able to clear in a couple of years leaving me with a car that I own and loan free.

What do you think I should do in this situation, have I decided on the best plan of action?

Thanks

What is the £7,800 valuation based on? Is it what you have estimated, or what a single dealer/garage has given you as part exchange?

If the latter, how does this compare with the used market? You need to get a range of quotes, as they vary widely between different dealers and garages.

It's also possible this value reflects the current climate. Come September, it's anyones guess where we could be...