Car PCP Coming to an end
Options
timmy_g123
Posts: 4 Newbie
in Loans
As the title suggests, my PCP is coming to an end.
Due to one thing or another, I've gone over my mileage, and there are scratches etc, and I'm estimating the amount I'll have to pay won't be far off £1000 if I give it back.
I was planning to pay the balloon payment of £3500 on a credit card, then sell it instantly privately, to a dealer, or car website, which could be anywhere between £3500 - £4000, and so I'd pay back off the credit card, and maybe even make money (I appreciate I've paid over £10000 over the last 3 years, but in the moment I would certainly feel like I've "made" a little bit if I sell for a good price).
HOWEVER, the finance company have recently changed it's policy and no longer accept credit card payments. So now I'm struggling for my options.
Do I just give it back when it ends and face the mileage/damage charges.
Do I take cash out of my credit card to put in my bank account to be able to make the payment then pay it off, although I'll face cash fee charges, plus interest as it'll take me a good few days to withdraw that amount of cash from an ATM.
I have maybe £1000 cash available to me. I also have a good credit score.
Suggestions welcome
Due to one thing or another, I've gone over my mileage, and there are scratches etc, and I'm estimating the amount I'll have to pay won't be far off £1000 if I give it back.
I was planning to pay the balloon payment of £3500 on a credit card, then sell it instantly privately, to a dealer, or car website, which could be anywhere between £3500 - £4000, and so I'd pay back off the credit card, and maybe even make money (I appreciate I've paid over £10000 over the last 3 years, but in the moment I would certainly feel like I've "made" a little bit if I sell for a good price).
HOWEVER, the finance company have recently changed it's policy and no longer accept credit card payments. So now I'm struggling for my options.
Do I just give it back when it ends and face the mileage/damage charges.
Do I take cash out of my credit card to put in my bank account to be able to make the payment then pay it off, although I'll face cash fee charges, plus interest as it'll take me a good few days to withdraw that amount of cash from an ATM.
I have maybe £1000 cash available to me. I also have a good credit score.
Suggestions welcome
0
Comments
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Hi,
Some credit cards offer "money transfer" where you can transfer cash to your bank account at 0% for 12 months etc. Barclaycard often offer money transfer offers to existing customers if that is one of your credit cards then you could check.
https://www.moneysavingexpert.com/credit-cards/money-transfers/0 -
There doesn't seem much point in paying the balloon of £3,500 just to go to the hassle of selling the card for the same amount.
Even more so with cash fees and interest.
I'd just hand it back.0 -
Have a look at getting another pcp from a different dealer.
They'll probably give you more than the company your with just to get your business.0 -
Get valuations from different dealers and online valuation sites and see how that compares with your settlement figure. That valuation will be based on its current mileage and condition, so will avoid any additional charges.
You could find that the car is worth more than the finance owing, despite the higher mileage.
What are your plans with replacing the car though?0 -
Get valuations from different dealers and online valuation sites and see how that compares with your settlement figure. That valuation will be based on its current mileage and condition, so will avoid any additional charges.
You could find that the car is worth more than the finance owing, despite the higher mileage.
What are your plans with replacing the car though?
Yes that's the plan, hopefully will find a higher payback somewhere.
Replacement, I was going to start another one, zero deposit (but will put on higher mielage this time!)0 -
Have you taken the time to calculate how much interest you paid by taking PCP finance?
What sort of PCP deal are you looking at next?
Why not just borrow money and keep the car you've got? It will likely be much cheaper to borrow, and the car will unlikely depreciate much further.0 -
Deleted_User wrote: »There doesn't seem much point in paying the balloon of £3,500 just to go to the hassle of selling the car for the same amount.
Even more so with cash fees and interest.
I'd just hand it back.
There's about £1k's worth of point. Because if he hands it back they'll want £1k for mileage and damage so he'll be £1k worse off. If he buys/sells even for the same amount, then he wont be.
OP you may well find, especially at this time of year, that a dealer if you are doing a PCP through them will do you a better deal on trade in than you can get privately. They will handle paying the finance.0 -
Why do you feel the need for a new car?
You say that you have spent over £10,000 on PCP over the past three years, so would presumably be paying at least that amount over the next three years for the next car.
If you pay off the £3,500 for your present car and keep this for another three years then even if you add on a potential couple of thousand for repairs, which may never be required, you would be £4000 or more better off. A no brainier to me, this is the MSE website after all.0 -
Some people have to keep up with the jones's when it comes to cars, my OH has a friend with two bmw pcp agreements for cars, they forfeit holidays and the house although its a detached it needs updating but they would rather be seen driving brand new flash cars.......... husband has just lost his job.
I 'm not saying this is the case with the OP but it is the way people think/act.0 -
Another vote here for keeping the car - it's three years old for goodness sake - why on earth do you need to replace it?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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