PCP advice - pay off remaining balance, then trade in car for new one, or trade in car first.

HenryDark

Hi, i just cant work out which is the best thing to do.  I have 18k left in PCP on a car.  I want to hand back the car to the original dealer and essentially swap for an EV.   I can potentially have 18k cash available.  Is it best to, pay off existing PCP, then hand back the car and get a much smaller finance agreement on a new EV.  Or is it better to hand back the car and use the 18k cash as a deposit on the new EV?   

I think there is a max amount they will accept as a deposit, so in terms of option 2, it would involve using some of the case for deposit, then the remaining cash to pay off part of the PCP after the purchase.

Thanks very much in advance!

KimJongUn88

Are you at the end of the PCP and the £18k is the balloon? 

Looking at the state of the current market, the car’s salute may well be higher than the balloon. In which case, you could pay the balloon and sell on at a profit or trade in with the dealer if they value it at higher than the balloon.

Grumpy_chap

HenryDark said:

Hi, i just cant work out which is the best thing to do.  I have 18k left in PCP on a car.  I want to hand back the car to the original dealer and essentially swap for an EV.   I can potentially have 18k cash available.  Is it best to, pay off existing PCP, then hand back the car and get a much smaller finance agreement on a new EV.  Or is it better to hand back the car and use the 18k cash as a deposit on the new EV?   

I think there is a max amount they will accept as a deposit, so in terms of option 2, it would involve using some of the case for deposit, then the remaining cash to pay off part of the PCP after the purchase.

Thanks very much in advance!

Treat this as two separate transactions that do not need to be linked, though can be if that gives the best overall outcome.

1. Negotiate the most favourable price (including cost of finance if applicable) for the purchase of the new car.
2. Negotiate the best possible value for the sale of the old car.  By all means, ask the garage supplying the new car to offer a price, but also check WBAC, Motorway, Arnold Clark plus local "we buy cars for cash" dealers.

BOWFER

I think the OP means he has £18k outstanding on his PCP agreement.
In which case he needs to ask for a settlement figure (which should have some form of discount and make the figure smaller).
Then he needs to see if the sale/trade value of the car will cover the settlement figure.
This is what I did with my Polo GTi, only 9 months into a 48 month deal.
the current high used prices meant I was able to settle the PCP early and still have a small amount of equity left.

HenryDark

BOWFER said:

I think the OP means he has £18k outstanding on his PCP agreement.
In which case he needs to ask for a settlement figure (which should have some form of discount and make the figure smaller).
Then he needs to see if the sale/trade value of the car will cover the settlement figure.
This is what I did with my Polo GTi, only 9 months into a 48 month deal.
the current high used prices meant I was able to settle the PCP early and still have a small amount of equity left.

Thanks, yes the 18k is the settlement figure supplied by Santander finance.  I'm only 1 year into the PCP.

HenryDark

Grumpy_chap said:

HenryDark said:

Hi, i just cant work out which is the best thing to do.  I have 18k left in PCP on a car.  I want to hand back the car to the original dealer and essentially swap for an EV.   I can potentially have 18k cash available.  Is it best to, pay off existing PCP, then hand back the car and get a much smaller finance agreement on a new EV.  Or is it better to hand back the car and use the 18k cash as a deposit on the new EV?   

I think there is a max amount they will accept as a deposit, so in terms of option 2, it would involve using some of the case for deposit, then the remaining cash to pay off part of the PCP after the purchase.

Thanks very much in advance!

Treat this as two separate transactions that do not need to be linked, though can be if that gives the best overall outcome.

1. Negotiate the most favourable price (including cost of finance if applicable) for the purchase of the new car.
2. Negotiate the best possible value for the sale of the old car.  By all means, ask the garage supplying the new car to offer a price, but also check WBAC, Motorway, Arnold Clark plus local "we buy cars for cash" dealers.

ok thank you.  that sounds sensible.  I will look at WBAC et al.  Thanks.

BOWFER

HenryDark said:

BOWFER said:

I think the OP means he has £18k outstanding on his PCP agreement.
In which case he needs to ask for a settlement figure (which should have some form of discount and make the figure smaller).
Then he needs to see if the sale/trade value of the car will cover the settlement figure.
This is what I did with my Polo GTi, only 9 months into a 48 month deal.
the current high used prices meant I was able to settle the PCP early and still have a small amount of equity left.

Thanks, yes the 18k is the settlement figure supplied by Santander finance.  I'm only 1 year into the PCP.

Ok, great.
So you need to ask the dealer what they will offer to buy the car back off you.
In my case I was due £19700 to settle the PCP early and the garage offered me £20400.
So I accepted, they paid VW finance and then transferred the £700 equity to me, which I used a deposit on a Nissan Leaf.
I may have been offered more by others, but I was desperate to get rid of it and it was easy.
Try 'Motorway' for or 'Cazoo' for selling your car, they both seem to be getting better reputations than WBAC.
They don't beat you down for every little mark.

sheslookinhot

HenryDark said:

Grumpy_chap said:

HenryDark said:

Hi, i just cant work out which is the best thing to do.  I have 18k left in PCP on a car.  I want to hand back the car to the original dealer and essentially swap for an EV.   I can potentially have 18k cash available.  Is it best to, pay off existing PCP, then hand back the car and get a much smaller finance agreement on a new EV.  Or is it better to hand back the car and use the 18k cash as a deposit on the new EV?   

I think there is a max amount they will accept as a deposit, so in terms of option 2, it would involve using some of the case for deposit, then the remaining cash to pay off part of the PCP after the purchase.

Thanks very much in advance!

Treat this as two separate transactions that do not need to be linked, though can be if that gives the best overall outcome.

1. Negotiate the most favourable price (including cost of finance if applicable) for the purchase of the new car.
2. Negotiate the best possible value for the sale of the old car.  By all means, ask the garage supplying the new car to offer a price, but also check WBAC, Motorway, Arnold Clark plus local "we buy cars for cash" dealers.

ok thank you.  that sounds sensible.  I will look at WBAC et al.  Thanks.

Motorway and Arnold Clark offered me over £1500 more than WBAC

WaywardDriver

Is the new EV in stock? If not, will the dealer guarantee the current P/E value for 3-6 months say delivery?

HenryDark

WaywardDriver said:

Is the new EV in stock? If not, will the dealer guarantee the current P/E value for 3-6 months say delivery?

Not sure, i will find out on thursday when i test drive.  thanks!

BOWFER

HenryDark said:

WaywardDriver said:

Is the new EV in stock? If not, will the dealer guarantee the current P/E value for 3-6 months say delivery?

Not sure, i will find out on thursday when i test drive.  thanks!

Which EV is it?