Can I / Should I trade in my car I got on PCP finance?

Dvekavo

I passed my test about 2 and a half years ago, and bought a car on the same day as passing.  As a result I think I may have made a quick decision and didn't look at finance options too well.  I probably got a bad interest rate too.  2015 Toyota x-wave aygo (soft top).  Currently has 37,300 miles on it (2,500 under the current allowance). 

Details of my finance agreement below (started 10th Aug 2018)

regular payments	46 payments of £ 121.98
Final payment	£ 3150.00

Loan amount	£ 7553.00
Credit facility (Document) Fee	£ 0.00
Completion Fee	£ 0.00
Total amount of interest	£ 1330.06
Total amount to pay	£ 8883.06
How long your agreement lasts	47 months

I'm still completely clueless when it comes to cars and finance.  I'm starting to think I need a bigger car.  It's only for me and my wife but we've started camping recently and getting everything in is a struggle.  How does it work, trading it in early?  Is this something which is inadvisable?  Should I just wait out the contract and hand it back? I could afford up to 200p/m on a car as my insurance has went down a lot since I passed too.

A general side note, I am quite reliant on the reverse camera, so much so I'm afraid to get a car without one...  I know you can get after market ones but halfords is charging £100 to get one installed.  Would a local mechanic be better ?  Sorry, like I said, I'm clueless with cars.  The only time I've been to a mechanic is for its MOT and service.

Dvekavo

Oh also, sorry for the double post, i cant edit my first post.  Just wondering, would a car dealer take care of all the PCP and finance stuff?

daveyjp

Car dealers will always do a deal.  If you can't pay the loan off, whatever you owe on the current car will be rolled over into the new loan.  If you can afford more start saving the extra.  You can hand the car back once 50% of what you borrowed is repaid, but this won't be until about month 40.

As you admit you don't have an understanding of the way finance works don't walk in and do a deal on a new car with outstanding finance as the dealer will have your pockets emptied before you realise what you have done.

neilmcl

When you "trade" a car on finance in what you're actually doing is asking the dealer to settle the finance on your behalf and then depending on what the dealer has valued the car the remainder get's rolled into the new finance deal. Trust me, the only person benefitting from this will be the dealer.

First thing you should do is ask for a settlement figure for your car, this will tell you what you (or the dealer) have to pay to clear the finance then look to get a valuation for your car to see what it's actually worth, try Webuyanycar for a no no-nonsense basic value.

Dvekavo

neilmcl said:

When you "trade" a car on finance in what you're actually doing is asking the dealer to settle the finance on your behalf and then depending on what the dealer has valued the car the remainder get's rolled into the new finance deal. Trust me, the only person benefitting from this will be the dealer.

First thing you should do is ask for a settlement figure for your car, this will tell you what you (or the dealer) have to pay to clear the finance then look to get a valuation for your car to see what it's actually worth, try Webuyanycar for a no no-nonsense basic value.

Thanks!  I worked out that the remaining amount for my car including the balloon payment is £4769.  Would a settlement figure from the finance company be less than this or more for doing it early?  Is this something I'd ask Barclays for? 

We buy any car says my car is worth £4715, so I assume that I'd basically break even if I were to trade it in? 

daveyjp said:

Car dealers will always do a deal.  If you can't pay the loan off, whatever you owe on the current car will be rolled over into the new loan.  If you can afford more start saving the extra.  You can hand the car back once 50% of what you borrowed is repaid, but this won't be until about month 40.

As you admit you don't have an understanding of the way finance works don't walk in and do a deal on a new car with outstanding finance as the dealer will have your pockets emptied before you realise what you have done.

Thank you!  Judging by my quick maths above I'll break even if I trade in the car which is perfect.  Should I go for PCP again or is there a 'better' option?  

I dont think I'd ever get a new car since it loses so much of its value with driving out of the showroom lol.  I'll try to not fall for the sales tactics again like I did when I got my first car.  The saleswoman must have seen dollar signs in her eyes when she found out I passed the same day, eager to buy a car and start driving RIGHT NOW, and I didn't haggle much on price.  I just told her "I have £200 a month for a car and insurance, what can you do for me".  Oh silly naïve younger me.

molerat

You need to ask for a settlement figure from the finance co, that will be less than the amount left to pay figure.  You then need to find out what you can actually get for the car - see what We Buy Any Car value it at or what a dealer will likely give you, you can look at somewhere like Arnold Clark and they will give a trade in value on their website. From there you can figure out the best way to go and if you have negative equity in the car which you will need to cover.

AdrianC

Dvekavo said:

I passed my test about 2 and a half years ago, and bought a car on the same day as passing.  As a result I think I may have made a quick decision and didn't look at finance options too well.  I probably got a bad interest rate too.  2015 Toyota x-wave aygo (soft top).  Currently has 37,300 miles on it (2,500 under the current allowance). 

Details of my finance agreement below (started 10th Aug 2018)

regular payments	46 payments of £ 121.98
Final payment	£ 3150.00

Loan amount	£ 7553.00
Credit facility (Document) Fee	£ 0.00
Completion Fee	£ 0.00
Total amount of interest	£ 1330.06
Total amount to pay	£ 8883.06
How long your agreement lasts	47 months

I'm still completely clueless when it comes to cars and finance.  I'm starting to think I need a bigger car.  It's only for me and my wife but we've started camping recently and getting everything in is a struggle.  How does it work, trading it in early?  Is this something which is inadvisable?  Should I just wait out the contract and hand it back? I could afford up to 200p/m on a car as my insurance has went down a lot since I passed too.

A general side note, I am quite reliant on the reverse camera, so much so I'm afraid to get a car without one...  I know you can get after market ones but halfords is charging £100 to get one installed.  Would a local mechanic be better ?  Sorry, like I said, I'm clueless with cars.  The only time I've been to a mechanic is for its MOT and service.

47 months from Aug 2018 takes you to July next year, 13-14 more months, so another £1,600-£1,700 in monthlies. Then you hand it back, or pay £3,150 - so, basically, getting out of the deal is going to cost you about £4,800 or so.

Looking on Autotrader, retail for your car is about that much. So... you'll be covering a shortfall if you chop it in now. Probably the thick end of a grand.

Is that worth it? Only you can answer that.

As far as the reversing camera goes, you proved in your driving test that you could reverse by actually turning your head and using your mirrors... You've simply got reliant on the gadget since.
It's an Aygo. If you reached your arm behind you, you could probably park by feel...

neilmcl

Dvekavo said:

neilmcl said:

When you "trade" a car on finance in what you're actually doing is asking the dealer to settle the finance on your behalf and then depending on what the dealer has valued the car the remainder get's rolled into the new finance deal. Trust me, the only person benefitting from this will be the dealer.

First thing you should do is ask for a settlement figure for your car, this will tell you what you (or the dealer) have to pay to clear the finance then look to get a valuation for your car to see what it's actually worth, try Webuyanycar for a no no-nonsense basic value.

Thanks!  I worked out that the remaining amount for my car including the balloon payment is £4769.  Would a settlement figure from the finance company be less than this or more for doing it early?  Is this something I'd ask Barclays for? 

We buy any car says my car is worth £4715, so I assume that I'd basically break even if I were to trade it in? 

daveyjp said:

Car dealers will always do a deal.  If you can't pay the loan off, whatever you owe on the current car will be rolled over into the new loan.  If you can afford more start saving the extra.  You can hand the car back once 50% of what you borrowed is repaid, but this won't be until about month 40.

As you admit you don't have an understanding of the way finance works don't walk in and do a deal on a new car with outstanding finance as the dealer will have your pockets emptied before you realise what you have done.

Thank you!  Judging by my quick maths above I'll break even if I trade in the car which is perfect.  Should I go for PCP again or is there a 'better' option?  

I dont think I'd ever get a new car since it loses so much of its value with driving out of the showroom lol.  I'll try to not fall for the sales tactics again like I did when I got my first car.  The saleswoman must have seen dollar signs in her eyes when she found out I passed the same day, eager to buy a car and start driving RIGHT NOW, and I didn't haggle much on price.  I just told her "I have £200 a month for a car and insurance, what can you do for me".  Oh silly naïve younger me.

Your settlement figure will be less because it won't include the future interest, and yes you ask your finance provider, in this case Barclays to provide this. The trade in figure will depend exactly on how much the dealer is willing to pay for it, don;t for one minute think you'll be quids in or even break even, and they may well ask for you to stump another deposit for the new car.

neilmcl

AdrianC said:

Dvekavo said:

I passed my test about 2 and a half years ago, and bought a car on the same day as passing.  As a result I think I may have made a quick decision and didn't look at finance options too well.  I probably got a bad interest rate too.  2015 Toyota x-wave aygo (soft top).  Currently has 37,300 miles on it (2,500 under the current allowance). 

Details of my finance agreement below (started 10th Aug 2018)

regular payments	46 payments of £ 121.98
Final payment	£ 3150.00

Loan amount	£ 7553.00
Credit facility (Document) Fee	£ 0.00
Completion Fee	£ 0.00
Total amount of interest	£ 1330.06
Total amount to pay	£ 8883.06
How long your agreement lasts	47 months

I'm still completely clueless when it comes to cars and finance.  I'm starting to think I need a bigger car.  It's only for me and my wife but we've started camping recently and getting everything in is a struggle.  How does it work, trading it in early?  Is this something which is inadvisable?  Should I just wait out the contract and hand it back? I could afford up to 200p/m on a car as my insurance has went down a lot since I passed too.

A general side note, I am quite reliant on the reverse camera, so much so I'm afraid to get a car without one...  I know you can get after market ones but halfords is charging £100 to get one installed.  Would a local mechanic be better ?  Sorry, like I said, I'm clueless with cars.  The only time I've been to a mechanic is for its MOT and service.

It's an Aygo. If you reached your arm behind you, you could probably park by feel...

Nice one 🤣, but true.

If someone can't reverse without any aids in an Aygo then they really shouldn't be anywhere near the roads.

Dvekavo

neilmcl said:

AdrianC said:

Dvekavo said:

I passed my test about 2 and a half years ago, and bought a car on the same day as passing.  As a result I think I may have made a quick decision and didn't look at finance options too well.  I probably got a bad interest rate too.  2015 Toyota x-wave aygo (soft top).  Currently has 37,300 miles on it (2,500 under the current allowance). 

Details of my finance agreement below (started 10th Aug 2018)

regular payments	46 payments of £ 121.98
Final payment	£ 3150.00

Loan amount	£ 7553.00
Credit facility (Document) Fee	£ 0.00
Completion Fee	£ 0.00
Total amount of interest	£ 1330.06
Total amount to pay	£ 8883.06
How long your agreement lasts	47 months

I'm still completely clueless when it comes to cars and finance.  I'm starting to think I need a bigger car.  It's only for me and my wife but we've started camping recently and getting everything in is a struggle.  How does it work, trading it in early?  Is this something which is inadvisable?  Should I just wait out the contract and hand it back? I could afford up to 200p/m on a car as my insurance has went down a lot since I passed too.

A general side note, I am quite reliant on the reverse camera, so much so I'm afraid to get a car without one...  I know you can get after market ones but halfords is charging £100 to get one installed.  Would a local mechanic be better ?  Sorry, like I said, I'm clueless with cars.  The only time I've been to a mechanic is for its MOT and service.

It's an Aygo. If you reached your arm behind you, you could probably park by feel...

Nice one 🤣, but true.

If someone can't reverse without any aids in an Aygo then they really shouldn't be anywhere near the roads.

Bahahaha, yes I've probably become over reliant on it and could park without it, i just feel it makes it a lot safer lol

Thank you so much everyone for your replies  

MovingForwards

You don't need a big car for camping, you just need a more appropriate 5 door as when stuff is packed right it goes in the boot and on the back seat, or seats folded down to give the illusion of space.

I've crammed a lot into small cars over the years, family size tent, sleeping bags, air mattress, camping stove with half size gas bottle, BBQ, coal, food, drink, clothes, chairs, icebox, cooking equipment, table the list goes on.

And with reversing, stop and get out the car if your unsure about space or stop and stick your head out the window, you'll soon learn what the distance is. Relying on a parking aid isn't good as they can fail.