Car Finance (PCP)
Comments
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My car is coming to the end of 0% PCP and I reckon if I argued a lot I might get just a bit more than the GMV given the sale prices for the model on ebay from dealers (GMV is about 8000 and the same model/spec is on sale for about 11000) but then I'd have no car and no money!
Not sure I understand this. At the end of the PCP term, you are free to sell the vehicle to whomever you choose (or you can return it) as long as the GFMV is settled in some way. If you can negotiate a higher trade-in/sale price with another dealer than your original dealer or the GFMV then go for that. Obviously the higher price may be contingent on buying a new car from the new dealer.
If the GFMV is £8000 and the sale price is £11000, then you won't have "no car and no money", you will have no car and £3000.0 -
You've fallen into the PCP trap, best of luck escaping it. Guess you'll be signing up for another PCP deal as I doubt running around in a £500-£1000 car is palatable to you.
Nope, no trap here pal. I will simply pay off the finance and keep the car, taking it on 0% meant I earned tonnes of interest with cash in the bank rather than paying up front. If you happen to have taken out PCP and not planned for the balloon then that's your business. I'm smarter than that0 -
Cornucopia wrote: »Not sure I understand this. At the end of the PCP term, you are free to sell the vehicle to whomever you choose (or you can return it) as long as the GFMV is settled in some way. If you can negotiate a higher trade-in/sale price with another dealer than your original dealer or the GFMV then go for that. Obviously the higher price may be contingent on buying a new car from the new dealer.
If the GFMV is £8000 and the sale price is £11000, then you won't have "no car and no money", you will have no car and £3000.
The dealer SELL price is about 11,000 for a great condition model which mine isn't, it's certainly been well maintained and looked after but it's not perfect, has the odd scratch and scrape. If the dealer sells around 11,000 (with some movement on negotiation) then they obviously aren't going to pay me 11,000 for it are they?
What I meant was, if I have to pay off £8000 (and don't have the money), then I could sell it, pay off the finance but I'd then have no money for a car and no car.
However, as I'm not stupid I have the money to pay it off earning me interest in various savings accounts so the finance firm have had the bill paid every month while I had the £8k in a Santander 123 which was initially earning me 3%, latterly 1.5% interest with other money in other accounts between 2.5% and 5%0 -
Yes, if you have the money available then you have the choice of pretty much all the PCP end-of-term options.
Even if you only end up with a proportion of the £3000 difference, it's probably worth shopping around, though.0 -
Cornucopia wrote: »Yes, if you have the money available then you have the choice of pretty much all the PCP end-of-term options.
Even if you only end up with a proportion of the £3000 difference, it's probably worth shopping around, though.
I double checked and it's around £8700 so suspect if I did want to sell it I'd be left with 1k or so and no car! However, I like the car and intend to run it for another 6-7 years as I did with my last so it works out well for everyone as I have the spec I like and car does everything I need and I don't see any need for a new car or spending another 20k!0 -
!!!8220; You've fallen into the PCP trap, best of luck escaping it. Guess you'll be signing up for another PCP deal as I doubt running around in a £500-£1000 car is palatable to you.
Originally posted by TaramborNope, no trap here pal. I will simply pay off the finance and keep the car, taking it on 0% meant I earned tonnes of interest with cash in the bank rather than paying up front. If you happen to have taken out PCP and not planned for the balloon then that's your business. I'm smarter than that
Same here. We also had a good deal on our 3 year PCP, which ended this year, and were seriously considering changing up to the latest model.
However....
As the engine we want isn't currently available in the new model.
We both like the car.
It has very low mileage.
...we paid the balloon payment and will reconsider our options in due course. We may go for another PCP, we may not - it depends on the deals available.0 -
I double checked and it's around £8700 so suspect if I did want to sell it I'd be left with 1k or so and no car! However, I like the car and intend to run it for another 6-7 years as I did with my last so it works out well for everyone as I have the spec I like and car does everything I need and I don't see any need for a new car or spending another 20k!
I'm in a similar position, too. 3+years into a 4 year 0% PCP. If I could get a similar deal to the previous one, and had a chunk of equity to put forward, I might consider another cheap (£150pm) PCP. But the temptation to just pay the GFMV is also quiet strong. The car's bodywork is like new, and the diesel engine is only recently fully run-in.0 -
Cornucopia wrote: »I'm in a similar position, too. 3+years into a 4 year 0% PCP. If I could get a similar deal to the previous one, and had a chunk of equity to put forward, I might consider another cheap (£150pm) PCP. But the temptation to just pay the GFMV is also quiet strong. The car's bodywork is like new, and the diesel engine is only recently fully run-in.
Exactly, fairly cheap service, decent MPG as I only really do long distance motorway journeys for sport and the odd supermarket shop. Full leather heated seats, can fit my bike in the back, £20 a year VED, cheap insurance and serves everything I need. Done 30000 miles and still on original tyres and serviced every year. Not going to waste money buying a new one and knew full well that after 42 months I would have to pay the GMV which is say in my bank waiting collection0 -
Nope, no trap here pal. I will simply pay off the finance and keep the car, taking it on 0% meant I earned [STRIKE]tonnes[/STRIKE] a very small of interest with cash in the bank rather than paying up front. If you happen to have taken out PCP and not planned for the balloon then that's your business. I'm smarter than that
Fixed that for you.
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I’ve had a little look on We Buy Any Car and it’s looking like £7,300 at best, which I imagine is way below any settlement figure Black Horse will offer (Evans Halshaw sold it for £10,750).
I can afford the payments: I was just contemplating ways I could save money with buying a new home that has good commuter links.
Nevermind, it was worth a thought!
Irrelevant how much you paid for the car in this instance but good to see how much the loaded dealer forecourt PCP price is against trade in/cash sale. Hope you can find an out for the vehicle.0
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