Car PCP ending and want to keep - But there is a catch...

Floridamad101

I have a car on PCP ending soon and I want to keep it.
The problem is :  I cannot get a personal loan as the amount is too much for me afford (According to the bank). The amount I am paying is over £600 per month and never defaulted my credit score on Experian is 990 (excellent).
I have tried to get a car loan from Lloyds but again they will only deal with a dealer not a private sale neither will they clear finance and also tell me I cannot afford MY OWN CAR!!!!. 
Car value on that site with Philp Schofield rescuing the cat £29,255  PCP balloon figure £21036  (Typical forecourt price around £34000 to £36000 with more mileage) 
Anybody got any ideas or know of a company that will wager against the car at a reasonable rate (car finance) just so I don't have to start again?
I have also asked the dealer if they will buy the car off of me and re-invoice it so I can take their finance. (Not interested in just making the finance commission)
To trade the car in for a new one at £600 per month..... Not an issue... 
HELP!!!!!
ANYBODY??

[Deleted User]

They're not telling you that can't afford YOUR OWN CAR.

They're telling you that you can't afford THE CURRENT LOAN plus ANOTHER LOAN.

Try an eligibility checker to see if you have options.  But you'll need the affordability to stack up, as well as needing a very good credit history.

Floridamad101

I have explained it's a refinance and the other amount will no longer be applicable.
Still NO!! 
They think I am going to spend it on something else!! 
I could put this on CC with a 4% balance transfer fee for 12 months but couldn't afford to to pay it off in the 12 months also this would affect my credit rating so wouldn't get any other offer on my other cards to switch again next year. 
Car loan is the way as they would settle the finance on this one and start a new deal so I didn't have the option to spend the money elsewhere..
 

[Deleted User]

Floridamad101 said:

I have explained it's a refinance and the other amount will no longer be applicable.
Still NO!! 
They think I am going to spend it on something else!! 

They have to assume that, as so many people do spend it on something else.

In what what do you think moving the secured debt to unsecured will affect your credit rating?  And with which lender?  Just because one may give think that certainly doesn't mean they all would.  For most, it would make little difference as your indebtedness won't have changed.

onlyfoolsandparking

You cant keep what you cannot afford, pretty basic economics!

Floridamad101

Not my credit rating (Sorry me not being clear), that's not a problem as it will just be the same diminishing amount just on a different credit provider.
The ability to move the debt again next year to another card as I couldn't afford to clear it in 12 months.
I have found that the offers stop altogether or get considerably more interest applied (Fee) to move the money and the time span gets less to pay it off, if you have debt on a CC already. They know you need to move the money or face 24-30% interest to leave it where it is.
I do want car finance as I have the option further down the line with the "Termination your rights section" if the car ends up in negative equity (Based on the 1/3's 1/2's rule) I can just let it go without any implication.
Any ideas?
    

foxy-stoat

You dont need to clear the whole balance off in 12 months, just do the shuffle a few times.  If you have no other debt and earn north of £40,000 you will struggle to get a loan, but 20 large spread over a few credit cards is easier to get, but getting money transfer offers for all £20K but thats what I would be doing.

Odd how you have £8,000 equity on a PCP deal, unless you drove less mileage than your maximum.

Aran76

I've had several PCP's over the years and never been anywhere near a minimum £8k profit at the end of the term, so congratulations on that for a kick off. I'm sure that there was a time when dealers allowed you to re-finance the balloon payment but it seems not anymore, they want to do everything they can to push you into their preferred option of parting with another shed load of cash on a new purchase.

From the figures that you have given you have a potential £10k+ profit in the car, you should certainly not give it back, you need to move heaven and earth to make that final payment. 

How much do you want to keep the car? And for how long? Could you put it on the CC with 4% fee then attempt to get another 0% deal in 12 months? Then if you cannot, cash in and sell the car. But the chances are that you will get something, you can also overpay at every opportunity over the next 12 months.

JamoLew

the balloon is £21k and dealers are selling for £34k -- what car is this please ?

Grumpy_chap

I always thought the dealer would be happy to support you buying the car out at the end, so I initially thought that was a bit odd.  Thinking a bit more rationally, why would the dealer want to enable the OP paying £21k for this £35k car?

That means the OP is left with looking for simple bank finance for the £21k and it seems that is being assessed as unaffordable.  The OP reports credit files in good order so it could be that the £21k loan is being assessed as on top of existing £600 per month car payment.

Could also be that the OP cannot afford the car.  None of us know enough to assess that as we would need to know income and other liabilities.

Clive_Woody

Grumpy_chap said:

I always thought the dealer would be happy to support you buying the car out at the end, so I initially thought that was a bit odd.  Thinking a bit more rationally, why would the dealer want to enable the OP paying £21k for this £35k car?

That means the OP is left with looking for simple bank finance for the £21k and it seems that is being assessed as unaffordable.  The OP reports credit files in good order so it could be that the £21k loan is being assessed as on top of existing £600 per month car payment.

Could also be that the OP cannot afford the car.  None of us know enough to assess that as we would need to know income and other liabilities.

Exactly my thoughts, the dealer can make a lot more by having the car returned and selling it, there's no incentive for them to help.