Decision time about my car - these are my options

FDa65rdk

Hello

The monthly payments are due to expire soon and I have the option of:

- paying the balance and keeping the car

- returning the car and getting a new one through the same people

- returning the car and getting a new one elsewhere

I’m not interested in the option 3 and I was wondering what experiences people have had with option 2.

Is it common for there to be ‘problems’ with the car that are suddenly noticed that mean the customer occurs an unexpected expense?

Also, I did quick search on Philip Schofield’s favourite site and the value of my car is over £1000 more than the outstanding balance if I were to choose option 1.

Would I be able to pay the balance, so I keep my current car for the time being, get a new car through the same people and then sell my current car and pocket the £1000+?

Or would the dealership give me a worse offer on a new car if I paid the balance on the old car as well?

Thanks

NottinghamKnight

If the car suits your needs probably most sensible to pay the balance and keep it. WBAC may also reduce their offer when they see it and see faults, real or imagined, so their valuation could actually be less. 
It's probably a good idea to shop around rather than rely on one place if you are looking to change. Dealers often make more money from selling you finance rather than the actual car so if you do finance a car again pay particular attention to the interest rate offered and finance element.

molerat

There are many other options and combinations of options other than just the 3 you listed.  If the car has a value greater than the balloon then handing it back to the finance house - note, not the dealer as  they have no financial interest in the car - is not a good idea.

A dealer will give you a trade in value, take the car off you, pay off the finance and use any balance towards the new car. You may get a good deal, you may not, but it is an easy option with little involvement from you and you don't have to use the same dealership / marque as the car came from.

WBAC will buy the car off you, settle the finance and give you the balance. Again an easy option.

If you pay off the balloon then the car is yours to do with as you wish.

Grumpy_chap

FDa65rdk said:

Would I be able to pay the balance, so I keep my current car for the time being, get a new car through the same people and then sell my current car and pocket the £1000+?

That should be possible.
You have done well to end the PCP with over £1k equity extra.
If you get a new car from the same people, are they giving extra to reflect the higher equity?  The agreement only sets out the GMFV, no reason they cannot give more.

FDa65rdk

Thanks for the responses.
Another factor is that if I return my current car and get a new one through the same finance company before the end of this month, then my first 3 months will be free - this will be roughly the equivalent of £670.

Grumpy_chap

To choose a car and take delivery in a week and 3 days seems a bit of a rush.  Or, do you just need to choose and order this month?

daveyjp

They aren't free months, they are priced into the deal.

When to expect major unexpected expense depends on the vehicle in question, how it has been driven and how well it has been maintained.

FDa65rdk

Grumpy_chap said:

To choose a car and take delivery in a week and 3 days seems a bit of a rush.  Or, do you just need to choose and order this month?

This is what I was told in a recent email:
'The sooner the better so that we can get you the 3 months free as to benefit from that offer the car has to be collected by 30th September. All of the cars we have offered aren't at our site yet so we would need to allow for enough time to get them here.'
So it looks like I will have to delivery by the end of the month.

FDa65rdk

daveyjp said:

They aren't free months, they are priced into the deal.

When to expect major unexpected expense depends on the vehicle in question, how it has been driven and how well it has been maintained.

The car is in good condition but I'm concerned about them saying 'We've found this, this, this and this...' and I have to take their word for it.
I don't know a great deal about cars and would not be in a position to confidently or convincingly argue with them telling that.

FDa65rdk

daveyjp said:

They aren't free months, they are priced into the deal.

When to expect major unexpected expense depends on the vehicle in question, how it has been driven and how well it has been maintained.

So there's no saving to be made at all?
For example, in reality my options (using convenient figures) are:
- buy the car next month and I'm required to make 36 payments of £330
- buy the car this month and I'm required to make 33 payments of £360
If I take the second option I'll be under the impression that I'm paying less because I'm making fewer payments but (because I haven't been quoted for the first option) I wouldn't be aware that both options end up the same overall.
Is that correct?

macman

FDa65rdk said:

Grumpy_chap said:

To choose a car and take delivery in a week and 3 days seems a bit of a rush.  Or, do you just need to choose and order this month?

This is what I was told in a recent email:
'The sooner the better so that we can get you the 3 months free as to benefit from that offer the car has to be collected by 30th September. All of the cars we have offered aren't at our site yet so we would need to allow for enough time to get them here.'
So it looks like I will have to delivery by the end of the month.

This is simply an unsophisticated sales pressure technique to push you into making a rushed decision and getting a poorer deal. As others have said, there are no free months. It's costed in, and the real price would be the same now or later.