Funding cost of settlement figure and buying a new car.

humey86

We are looking at getting a new car, a campervan specifically. I currently have a 17 plate Sportage with low mileage on a PCP and have requested a settlement figure. The settlementment figure is within £1k of the valuation given by webuyanycar/wewantanycar and also relativley close to private sale. 

My question is, is there a way to get a loan to clear the pcp and then sell to a seller with the idea of then clearing the loan straight away? Our next vehicle will be around an £18k budget of which we will get a loan to purchase.
Any advice?

The_Rainmaker

Aye you can get a loan if your credit rating is OK.  But build a little slack in to your equations.

AdrianC

Sounds like that's a settlement to keep the car. For <£1k, is it worth the hassle?

So what's the settlement to hand it back?

humey86

I didn't know there was such thing as settlement to hand back?!

marlot

The settlementment figure is .... relativley close to private sale...

Don't forget that when you sell privately, you pay for advertising.  Also if the car doesn't sell quickly you're paying tax, insurance etc.  Just send it back?

Ectophile

humey86 said:

I didn't know there was such thing as settlement to hand back?!

PCP is a form of Hire Purchase.  It includes a legal right to voluntary terminate the agreement once you have paid 50% of the total amount payable.  On a PCP that won't be 50% of the payments, since the last payment is much larger.

Once you have reached 50%, you can hand the car back.  Before that, you can make a lump sum payment to bring it up to 50%, then hand the car back.