Lease is up... £4770 balloon to pay

Thatsthespirit

This is the first time I’ve took a PCP car out. I don’t do much driving in my car but I love it as had it from new (Hyundai i20 15k miles in 3 years). I have 3 choices - I think but I really don’t know what to do. I have that money to pay off the balloon but I wanted to invest that elsewhere after Christmas (stocks/shares). Choice 2 was apparently you can refinance that balloon payment to pay off the remainder over 3 years again or whatever it is then the car is officially mine. Or, trade in for a new car which as I say... do I really need? Granted it’s a new car, less issues etc but I’m tied in with paying arguably more monthly and bigger balloon payment again. Really don’t know what to do 

facade

First find out what the finance payments would be to finance the balloon

Pay the balloon with savings.

Then multiply the payment by the number of payments and subtract the balloon to see how much you have saved.

Put what would be the finance payment in a regular saver or equivalent each month.

Can't help with the stocks & shares. If you'd stuck it in Pfiser before the announcement, you would have made money, if you leave it in Pharmaceuticals you could loose a fortune if something goes wrong with a wonder drug and they are liable for compensation.

I have had a stocks & shares ISA for years, it has done nothing but loose money hand over fist, according to the statements.....

neilmcl

Thatsthespirit said:

This is the first time I’ve took a PCP car out. I don’t do much driving in my car but I love it as had it from new (Hyundai i20 15k miles in 3 years). I have 3 choices - I think but I really don’t know what to do. I have that money to pay off the balloon but I wanted to invest that elsewhere after Christmas (stocks/shares). Choice 2 was apparently you can refinance that balloon payment to pay off the remainder over 3 years again or whatever it is then the car is officially mine. Or, trade in for a new car which as I say... do I really need? Granted it’s a new car, less issues etc but I’m tied in with paying arguably more monthly and bigger balloon payment again. Really don’t know what to do 

It's just a simple case of maths. You need to do the sums and work out for yourself which is the best bet.

Can you buy the same car, similar mileage/condition for that amount?

NottinghamKnight

facade said:

First find out what the finance payments would be to finance the balloon

Pay the balloon with savings.

Then multiply the payment by the number of payments and subtract the balloon to see how much you have saved.

Put what would be the finance payment in a regular saver or equivalent each month.

Can't help with the stocks & shares. If you'd stuck it in Pfiser before the announcement, you would have made money, if you leave it in Pharmaceuticals you could loose a fortune if something goes wrong with a wonder drug and they are liable for compensation.

I have had a stocks & shares ISA for years, it has done nothing but loose money hand over fist, according to the statements.....

If your ISA has been losing money for years there is something seriously wrong with what you are investing in, average return over the last decade for a global equity find have been 10% per year.
OP  - first thing to do is get a valuation on your car, one option would be to pay the balloon and then sell it which might give you an immediate profit. Refinancing will probably be more expensive and you may get more from investing the money but by no means certain with markets back at all time highs (ex UK of course). 
I wouldn't get a new car as your mileage is very low, and presumably reduced further this year. One option is to buy a cheap car with cash, there's a risk you'll have to spend money on repairs but the overall cost is likely to be much lower.

Thatsthespirit

neilmcl said:

Thatsthespirit said:

This is the first time I’ve took a PCP car out. I don’t do much driving in my car but I love it as had it from new (Hyundai i20 15k miles in 3 years). I have 3 choices - I think but I really don’t know what to do. I have that money to pay off the balloon but I wanted to invest that elsewhere after Christmas (stocks/shares). Choice 2 was apparently you can refinance that balloon payment to pay off the remainder over 3 years again or whatever it is then the car is officially mine. Or, trade in for a new car which as I say... do I really need? Granted it’s a new car, less issues etc but I’m tied in with paying arguably more monthly and bigger balloon payment again. Really don’t know what to do 

It's just a simple case of maths. You need to do the sums and work out for yourself which is the best bet.

Can you buy the same car, similar mileage/condition for that amount?

Any idea an accurate valuation site for valuing my car?
autotrader is genuinely varying by the thousands so hard to get an accurate understanding off that. 

Also for someone with lack of a logical brain such as myself can you elaborate on the simple maths?
ive been paying £156(interest included) for 3 years, with a £2000 deposit . Ideally I would kee the car rather than sell it but that’ll be my savings blown if I pay the balloon payment. Plus side is im not paying out £156 per month anymore 

molerat

Unlikely you will be able to borrow the balloon amount cheaper than your savings interest unless you can get a 0% MT credit card.  If it will not use up all of your savings pay off the balloon and put the £156 per month back into savings which will take you 2.5 years. A quick look suggests you are not going to pay less than £7K for one at a dealers, and for that you are going to get pretty high mileage, so sticking with it would seem a good idea.

photome

My guess and it is only a guess is that you won’t be able to buy a 3 year old 15000 mile i20 for £4770. In which case it’s a no brainier , pay the money  from savings and the car is yours, unless you can get an interest free loan for £4770.

The car was never going to be yours without doing one of the above

 Taking out another pcp for a new car would be a waste of money given your mileage and the fact the i20 is still under warranty assuming you have kept up with the services

Thatsthespirit

photome said:

My guess and it is only a guess is that you won’t be able to buy a 3 year old 15000 mile i20 for £4770. In which case it’s a no brainier , pay the money  from savings and the car is yours, unless you can get an interest free loan for £4770.

The car was never going to be yours without doing one of the above

 Taking out another pcp for a new car would be a waste of money given your mileage and the fact the i20 is still under warranty assuming you have kept up with the services

Yep It is still under warranty. Thanks all for making me see a bit clearer, appreciate the responses . I will pay off the balloon and keep the car. Nothing wrong with it and it’s done me well(considering how little I drive it)

neilmcl

Thatsthespirit said:

neilmcl said:

Thatsthespirit said:

This is the first time I’ve took a PCP car out. I don’t do much driving in my car but I love it as had it from new (Hyundai i20 15k miles in 3 years). I have 3 choices - I think but I really don’t know what to do. I have that money to pay off the balloon but I wanted to invest that elsewhere after Christmas (stocks/shares). Choice 2 was apparently you can refinance that balloon payment to pay off the remainder over 3 years again or whatever it is then the car is officially mine. Or, trade in for a new car which as I say... do I really need? Granted it’s a new car, less issues etc but I’m tied in with paying arguably more monthly and bigger balloon payment again. Really don’t know what to do 

It's just a simple case of maths. You need to do the sums and work out for yourself which is the best bet.

Can you buy the same car, similar mileage/condition for that amount?

Any idea an accurate valuation site for valuing my car?
autotrader is genuinely varying by the thousands so hard to get an accurate understanding off that. 

Also for someone with lack of a logical brain such as myself can you elaborate on the simple maths?
ive been paying £156(interest included) for 3 years, with a £2000 deposit . Ideally I would kee the car rather than sell it but that’ll be my savings blown if I pay the balloon payment. Plus side is im not paying out £156 per month anymore 

Well any new loan/finance is going to cost money so you'd need to work out just how much that's going to be and then any potential return from your "investments". Subtract one from the other will tell you whether it's worth going down that route, personally I'd expect not.

macman

The dealer would of course love you to go for option 3 (rinse and repeat): that's where the profit is.

sheslookinhot

Price up each option and note the pros and cons of each. The answer will then become clearer. A personal loan might be an option for the balloon payment enabling you to keep the cash for your investment choice.