Is this settlement figure correct?

axil23

Car price 88,000
Deposit paid - 20,000
Amount of credit - 68,000
Interest charged over 4 years PCP - 16,322
Total paid so far 9 x 871 = 7,839.

I am selling the car and my settlement figure given is - 69,500

Would appreciate someone who knows about this advice. 

TadleyBaggie

What is the APR? And the balloon payment?

Ayr_Rage

If the settlement figure has been produced automatically there is only a very minute chance it is incorrect.

LightFlare

The same car ?

If so, I would ask for the threads to be merged

https://forums.moneysavingexpert.com/discussion/6465843/early-settlement-on-pcp-do-i-need-to-pay-50-of-interest-costs#latest

axil23

TadleyBaggie said:

What is the APR? And the balloon payment?

APR is 7.4% and final payment is £42,600 after 4 years. 

Ayr_Rage - Basically this was a personal purchase but I was sold a Business PCP. 

LightFlare yes it is the same thread. My apologies I completely forgot that I had set one up. Basically to follow up on that my buyer pulled out of the sale and I did an official complaint with both the broker and the finance company. It took around 6 months and they did not admit liability but the broker managed to get some sort of approval to get it treated as a Personal purchase. 

When I called up the finance company this week they treated it like a business PCP and gave me a figure when I pointed out that it should be treated as a personal settlement she came back with a figure only £600 lower. 

Hence why I can't figure out how to make sure its correct. 

Veteransaver

axil23 said:

Car price 88,000
Deposit paid - 20,000
Amount of credit - 68,000
Interest charged over 4 years PCP - 16,322
Total paid so far 9 x 871 = 7,839.

I am selling the car and my settlement figure given is - 69,500

Would appreciate someone who knows about this advice. 

It doesn't look right that your settlement figure is higher than the amount of credit taken.
Interest over 9.months would be approx £3700 but you've made £7.8K in payments.
So I'd expect settlement figure to be around £64k.
Very rough figures.

axil23

That's what I thought too. I don't want to loose the buyer with further delays. Since he is paying 71k can I ask him to pay the 69k to the finance company and 2k to me and take this up with them separately? 

It's a bit of a messy one as the front end call centre team are not doing the figures correctly. I will probably have to get in touch with the customer care manager to sort out again via email. 

I will certainly try clearing this up with the finance company Monday morning but if they say it needs looking into etc I don't want to delay things. 

Or once its paid is the matter closed? 

axil23

axil23 said:

Or once its paid is the matter closed? 

Anyone please? 

Veteransaver

It would be likely be more of a battle to get them to refund you if you've paid the settlement. 
You really need to get the finance co to confirm though.
I mean it does look like they are trying to charge you half the total interest payable and they haven't changed this to a personal PCP, but it could take them ages to sort out.

Herzlos

axil23 said:

That's what I thought too. I don't want to loose the buyer with further delays. Since he is paying 71k can I ask him to pay the 69k to the finance company and 2k to me and take this up with them separately?

That's the safest way for the buyer to do it, because if he pays you the £71k direct you'd need to pay the finance company before being able to transfer the car to him.

It's probably complicated by it being a business transaction where the 59-day interest rule won't apply. What's in the paperwork?

One the settlement figure is confirmed paid, then the car is yours to do with as you want.

axil23

Paperwork is still the Business PCP but I do have a email confirmation from the bank to say going forward they will treat it as a personal PCP if I settle early. 

A dealer is buying the car. How does this normally work? Do they pick up the car and settle the finance according to the settlement letter? I can’t see them paying me direct.