Positive Equity in my Vehicle

Harrier3

Hello MSE,

Last year I engaged in a PCP deal for a vehicle. After a few hours of browsing Autotrader I noticed that my vehicle (BMW 118i - 67 Plate M Sport Shadow Edition) is selling for well above my settlement figure.

I can see Vehicles closely matching the spec, mileage and condition of the one that I drive upwards of £20,000

My resettlement figure is just North of £14,000. 

Is there any scope here for me to profit from the current prices? For example... Obtaining a further Loan to buy out my vehicle, selling the Vehicle as my own and using the profit to purchase a new vehicle? (With less finance). Any recommendations welcome.

Just spit-balling ideas here!

Thanks in advance!

Grumpy_chap

Yes, you can sell your car at any time and don't need the complexity of another loan to do that 

Get prices from WBAC and Motorway and then try local dealers that buy cars for cash.  You could even try BMW dealer.  These companies will buy your car, settle the finance and pay you the surplus.

You can then buy any car you wish, but remember used car prices are strong across the board.

You may not realise the price of the highest advertised cars online - they may not sell for that much - even if they do, you are not offering warranty etc.

DrEskimo

Ignore the positive equity aspect. How much you happen to owe on the car is largely irrelevant.

The only thing that matters here is whether you can sell the car for more than you are able to buy the replacement? Are you looking to change to a cheaper car? What makes you think you will obtain a dealer level of price at sale, and then not have to pay over the odds for a replacement if yours is selling for more than you would expect?

Harrier3

Both valid points, after seeking a valuation the positive equity isn't as meaningful as at first thought.

Even if I managed to privately sell the motor, I would still be neglecting to consider how much I have already payed into the agreement and how much the replacement will cost, even with a downgrade I doubt it would be worth doing.

DrEskimo

The best thing you can do to save money is pay down the finance as quick as possible. You could save thousands in interest charges.

Harrier3

I think that's my best option currently, I appreciate your help.