PCP balloon payment

robbo837

My balloon payment for £15k is due in a few months and other cars exactly the same are valued at 22k. 

Im interested in returning it and getting an electric car for £25k. If I hand it back will they take any value from the vehicle to use as deposit or new car from same dealership. 

Or should I get a loan for £15k and sell the car for 22k and use that money as the deposit. 

Also the new car will be built but don’t think it will be ready for when the balloon payment is due 

Ayr_Rage

If you hand it back to the finance company you get nothing and is only a good idea if the balloon is more than the value of the vehicle.

Get a settlement figure.

Then you can sell the car to a dealer/WBAC/Motorway etc, they will clear the outstanding finance and return any balance above the settlement value to you.

You can then use that money as a deposit on a new vehicle.

robbo837

Thanks. That’s what I was thinking 

Wonka_2

Out of interest what’s your definition of ‘valued’ ? Is that the dealer price they’re selling at or what a dealer will give you as PX ? 

ManyWays

If the new car wont be ready and you need a car, then a loan for the balloon payment sounds the best option.