In 1k negative equity on a PCP

ngc5195fly

Hi all, 

My question is very simple but I can’t seem to be able to figure out what the best solution to that would be. 

I am 19 months into a 48 month pcp. The car is worth around 5.5k with settlement figure at 6.5k. 

I am looking to get rid of it as I no longer need it but thinking that a private sale would be a nightmare due to the outstanding finance being tied to it. 

What would be the most straight forward way to do this? Would it be worth me calling the finance company and asking what additional payment I’d need to make in order to VT or is this a bad idea? 

If I went down the private sale route, would the buyer be able to settle the finance if they wished to do so?

Any answers would be much appreciated.

thanks 

Grumpy_chap

You are probably correct that a private sale may not be straightforward.

Where did you get the offer at £5.5k from?

You can check offers from other traders - WBAC, Motorway, local dealers.

ngc5195fly

Grumpy_chap said:

You are probably correct that a private sale may not be straightforward.

Where did you get the offer at £5.5k from?

You can check offers from other traders - WBAC, Motorway, local dealers.

Yeah, that’s from WBAC and some other similar websites. Would a local dealer be willing to buy it from me and clear the finance at the same time? 

AdrianC

Not VT - you'll be a LONG way from the 50% point - but settlement, which will require you to pay £6,500 and you don't return the car. You then sell it for £5,500 or whatever you can get.

VT requires you to pay to 50% and return the car.

ngc5195fly

I was thinking of paying £1,000 towards the finance and then going somewhere like WBAC show them the settlement figure which would of reduced by a £1,000 and get the car sold to them?

Nebulous2

ngc5195fly said:

I was thinking of paying £1,000 towards the finance and then going somewhere like WBAC show them the settlement figure which would of reduced by a £1,000 and get the car sold to them?

Have you ever sold a car to WBAC before?

The figure quoted online is a starting point. Any repainted panels, scratches, missing parcel shelves etc will see a reduction. They also take a fee from the price quoted. Unless the car is outstanding I'd expect you to end up closer to £5k. 

They hold their price for a period. It used to be a week I think, but they reduced it during the pandemic. You could get a price from them, then make a payment to bring the outstanding amount down just below the figure they offer. Or, if you can afford it, you can pay £2k in to be safe and they will pay off the finance and give you the balance. 

Finally - if the car is in good condition, dealers selling the same make of car may give you more than WBAC. They will also settle the finance. Make sure you get more than one price before agreeing a deal. 

ngc5195fly

Nebulous2 said:

ngc5195fly said:

I was thinking of paying £1,000 towards the finance and then going somewhere like WBAC show them the settlement figure which would of reduced by a £1,000 and get the car sold to them?

Have you ever sold a car to WBAC before?

The figure quoted online is a starting point. Any repainted panels, scratches, missing parcel shelves etc will see a reduction. They also take a fee from the price quoted. Unless the car is outstanding I'd expect you to end up closer to £5k. 

They hold their price for a period. It used to be a week I think, but they reduced it during the pandemic. You could get a price from them, then make a payment to bring the outstanding amount down just below the figure they offer. Or, if you can afford it, you can pay £2k in to be safe and they will pay off the finance and give you the balance. 

Finally - if the car is in good condition, dealers selling the same make of car may give you more than WBAC. They will also settle the finance. Make sure you get more than one price before agreeing a deal. 

This makes total sense, thanks for taking the time to explain to me. I will shop around and try to get the best price before settling the finance. Thanks everyone 

macman

You won't be at the VT point until probably 36m or later on a 48m PCP, depending on the balloon payment value
So at least 18m away from that point still.

motorguy

ngc5195fly said:

Hi all, 

My question is very simple but I can’t seem to be able to figure out what the best solution to that would be. 

I am 19 months into a 48 month pcp. The car is worth around 5.5k with settlement figure at 6.5k. 

I am looking to get rid of it as I no longer need it but thinking that a private sale would be a nightmare due to the outstanding finance being tied to it. 

What would be the most straight forward way to do this? Would it be worth me calling the finance company and asking what additional payment I’d need to make in order to VT or is this a bad idea? 

If I went down the private sale route, would the buyer be able to settle the finance if they wished to do so?

Any answers would be much appreciated.

thanks 

Theres no real issue with selling it privately.

Advise whoever is coming to look at the car that if they buy the car they will be paying the finance company directly and you have all the paperwork there / phone number ready, etc.  On the day ring the finance company, and then have the person speak to them and pay the finance.  Any difference, either you pay if its below the settlement at the same time, or the buyer pays you.  The finance company will be able to confirm by email they no longer have a financial interest in the car.

I've dont that several times when buying and the odd time in the past when selling.

Dont take the money off the buyer and then you pay it.  That will make everyone very jumpy.  Just have them pay the finance company direct.

Also, i'd probably avoid WBAC unless the car is totally totally as described.  They will go over it in forensic detail marking every stone chip, blemish, scratch, kerbing on the alloys.  They will also go through the service history.  Your definition of "full" may not meet theirs.  For example, i'd a Clio 197 with 4 renault main dealer stamps in the history and 48K miles and, in fact, a full maintenance history too.  By the miles it was "full", but it should have been serviced every two years irrespective, so they market it down as "part".  

Try the local dealer you bought it off, see if they will maybe buy it back for stock.  Try local dealers who stock similar cars - just ring and ask to speak to the person who deals with buying stock.  

AdrianC

motorguy said:

Your definition of "full" may not meet theirs.  For example, i'd a Clio 197 with 4 renault main dealer stamps in the history and 48K miles and, in fact, a full maintenance history too.  By the miles it was "full", but it should have been serviced every two years irrespective, so they market it down as "part".  

And quite rightly too.

The interval was, what, 12k/2yr, whichever comes first... And how old was the car?

GeordieGeorge

motorguy said:

ngc5195fly said:

Hi all, 

My question is very simple but I can’t seem to be able to figure out what the best solution to that would be. 

I am 19 months into a 48 month pcp. The car is worth around 5.5k with settlement figure at 6.5k. 

I am looking to get rid of it as I no longer need it but thinking that a private sale would be a nightmare due to the outstanding finance being tied to it. 

What would be the most straight forward way to do this? Would it be worth me calling the finance company and asking what additional payment I’d need to make in order to VT or is this a bad idea? 

If I went down the private sale route, would the buyer be able to settle the finance if they wished to do so?

Any answers would be much appreciated.

thanks 

Theres no real issue with selling it privately.

Advise whoever is coming to look at the car that if they buy the car they will be paying the finance company directly and you have all the paperwork there / phone number ready, etc.  On the day ring the finance company, and then have the person speak to them and pay the finance.  Any difference, either you pay if its below the settlement at the same time, or the buyer pays you.  The finance company will be able to confirm by email they no longer have a financial interest in the car.

It does put some buyers off; I’d prefer not to have this extra complication when buying, preferring to keep the transaction as simple as possible. If the seller can’t clear the finance until you pay them there’s still the chance that they take your money and then just refuse to pay the lender off.