PCP Termination/We Buy Any Car

meerkatpie

Afternoon All, 

Sorry for posting this question here. If this isn't the right place, please point me in the right direction! :') 

So, I heard an advert the other day for We Buy Any Car. It said in the advert that they will pay off cars, even with finance... 

I have done a bit of research and it turns out that they actually do buy cars even with outstanding finance, you just have to make up any shortfall in the finance with a debit or credit card.

Well, online they are offering £11,000 for my car, there is just shy of £13,000 outstanding. 

It's in very good condition with low milage, so let's say for arguments sake they will offer me £10,000.

I am not sure whether to take my car down and trade it in, then buy a cheap runabout for a few hundred pounds to cut off most of the debt, or whether to stick it out now I have a relatively decent car and work to pay off the larger amount of debt instead?

I do like the convenience of having an alright car and I do the odd long journey throughout the year, so it's reassuring there is less chance of it breaking down, but I am also thinking of my debt. 

If they offer me £10,000, I could put negative equity on my Barclaycard at 0%, which would be about £3,000. I would also need to pay for a runabout car which will probably need work doing to it (let's call that £1,000).

So overall that would take my debt from:

£18,341 to £9548, including £4000 for the finance shortfall and a runabout car. 

And would cut £292 from my monthly expenditure to towards my debt.

Does anyone think that it's worth it? Or has anyone had any dealing with this kind of thing before? I really don't know what to do for the best, but I also don't want to stretch myself with my credit card repayments. 

Or the only other option is to put £3000 towards my current finance and terminate as 50% of the agreement would be paid. But I am really not sure about the implications and logistics of this so that would be new territory too...

The whole aim is to be debt free, but I have no idea the effect it might have towards my credit. It relates to my debt free Home Goals if anyone needs more context:  https://forums.moneysavingexpert.com/discussion/6177323/home-goals#latest

Thanks in advance!

Hoorah

Using WBAC is a terrible decision. They always pay peanuts and try knock off what they can when you take it in.

Try https://www.arnoldclark.com/sell-my-car

They pay off the finance in the same way. I took my car there and they paid the full amount even though it had a fair few bodywork issues. 

meerkatpie

Thank you very much, they will even offer me a little more which is good.

I'll need to get it valued properly, I just need to navigate the minefield of buying a runabout car. I've never not had one from a dealership...

Ebe_Scrooge

meerkatpie said:

I'll need to get it valued properly, I just need to navigate the minefield of buying a runabout car. I've never not had one from a dealership...

At the £1000 price-point for a runabout, you're better off buying privately.  If you spend £1000 at a trader, you're buying a £700 car with a £300 markup (not precise figures, but you get the idea).

There are plenty of good guides available online, here's just one by way of example : https://www.autoexpress.co.uk/car-news/96595/buying-a-car-privately-advice-and-tips.  You'll also find websites that list common faults with particular models, these can be handy so you can make sure you check these items particularly thoroughly at the inspection.

Common things to be aware of when buying privately:

1. Always view the car at the seller's house, not in some anonymous car park.  When you phone up to enquire, say you're asking about "the car that's for sale".  A genuine private seller will only have the one, if he asks you "which one" then he could well be a dealer posing as a private seller.

2. Be aware that you have no come-back, so make sure you inspect and test-drive it thoroughly (the only come-back you would have is if the seller deliberately lies to you about a fault, and even that can be very hard to prove).  Basically, accept that it's sold as seen.  That's why the price will be cheaper than from a dealer.

3. Buy on condition.  Mileage is largely irrelevant on older cars, check the condition of the car, look for receipts or proof that it's been serviced and maintained regularly.  Looking up the MOT history online can give you a clue as to previous faults that have occurred and hopefully been rectified.

4. Check that the seller actually owns the car, or at least is legally entitled to sell it.  An HPI check is not too expensive and can be worth it for the peace of mind.

5. Accept that an older car will inevitably need work doing to it, you'll need to budget for this.

These are just general pointers, you really do need to give it a very thorough going-over.  That said, there's no reason that an older car bought privately can't be an absolute bargain if you do your research and check it over carefully.

Grumpy_chap

£13k outstanding.
What is the settlement figure?

meerkatpie

Ebe_Scrooge said:

meerkatpie said:

I'll need to get it valued properly, I just need to navigate the minefield of buying a runabout car. I've never not had one from a dealership...

At the £1000 price-point for a runabout, you're better off buying privately.  If you spend £1000 at a trader, you're buying a £700 car with a £300 markup (not precise figures, but you get the idea).

There are plenty of good guides available online, here's just one by way of example : https://www.autoexpress.co.uk/car-news/96595/buying-a-car-privately-advice-and-tips.  You'll also find websites that list common faults with particular models, these can be handy so you can make sure you check these items particularly thoroughly at the inspection.

Common things to be aware of when buying privately:

1. Always view the car at the seller's house, not in some anonymous car park.  When you phone up to enquire, say you're asking about "the car that's for sale".  A genuine private seller will only have the one, if he asks you "which one" then he could well be a dealer posing as a private seller.

2. Be aware that you have no come-back, so make sure you inspect and test-drive it thoroughly (the only come-back you would have is if the seller deliberately lies to you about a fault, and even that can be very hard to prove).  Basically, accept that it's sold as seen.  That's why the price will be cheaper than from a dealer.

3. Buy on condition.  Mileage is largely irrelevant on older cars, check the condition of the car, look for receipts or proof that it's been serviced and maintained regularly.  Looking up the MOT history online can give you a clue as to previous faults that have occurred and hopefully been rectified.

4. Check that the seller actually owns the car, or at least is legally entitled to sell it.  An HPI check is not too expensive and can be worth it for the peace of mind.

5. Accept that an older car will inevitably need work doing to it, you'll need to budget for this.

These are just general pointers, you really do need to give it a very thorough going-over.  That said, there's no reason that an older car bought privately can't be an absolute bargain if you do your research and check it over carefully.

That's really great advice, thank you very much! 

I have never purchased a car privately before and to be quire honest, I'm not very mechanically savvy, so it does seem a bit daunting.

But once I have got a good price for my current car, I am going to have a look around at what I can find I think. 

I'm quite happy for something just to get me through the next year or so, at least until I have paid down all my debt so it doesn't need to go forever.

But £2k on a car and repairs over that year is better than the £292 I pay a month at the moment.

The advice is greatly appreciated!  

meerkatpie

Grumpy_chap said:

£13k outstanding.
What is the settlement figure?

That is the settlement, well I believe it is £12,793.40 now.

The PCP I took out is 0%, and when I requested a settlement figure it was the same as the finance outstanding.

CreditCardJunkie

Others may not agree with this but I handed back my PCP car at the end of the term and bought a £1200 run around which needed £600 worth of work and lasted a year. My car payments were around the same as that and the runaround was much heavier on fuel with much higher road tax. I ended up taking on another PCP agreement when runaround was done as I can afford it and I enjoy driving a nice reliable car.

DrEskimo

It's certainly an option for reducing your debt, but as others say shop around and see if you can get a better price than WBAC. Most garages/dealers will give you an offer to buy the car from you. Motorway.co.uk is another place to try.

Just be mindful that you may not be able to settle the shortfall with a purchase credit card. You would need to look at balance transfer.

You really need to sit down and think how much longer it will take to clear your debt with the current car, compared to changing it for a cheaper one. 

Karonher

As soon as I saw We Buy Any Car my thought was "don't do it."

meerkatpie

CreditCardJunkie said:

Others may not agree with this but I handed back my PCP car at the end of the term and bought a £1200 run around which needed £600 worth of work and lasted a year. My car payments were around the same as that and the runaround was much heavier on fuel with much higher road tax. I ended up taking on another PCP agreement when runaround was done as I can afford it and I enjoy driving a nice reliable car.

Ah okay, did you find you had quite a few problems with the cheaper car?

I think that's my worry, I don't want to get it and then break down all the time, but I suppose that's the chance you take and the reason why new cars cost more ultimately.