PCP finance

kite99 · 2 December 2019 at 1:51PM

Hi guys,

Just wondering if anyone could advise.

2 weeks ago i was in a 3 vehicle accident and unfortunately my car has been deemed a write off. I've been waiting for Admirals valuation to come through for quite some time and really struggling to get to work and around without a car - hire cars etc are not an option.

I have secured a new deal with a VW but wanted to wait till the previous vehicle finance was cleared as the insurance settlement payout before applying to new finance.

Whats the likelyhood of being accepted on the new PCP finance when i still have existing attached to my file? How long does it generally take to clear from file after payout - could be another 3 weeks till final valuation is back from Admiral's underwriters. Keen to not get a rejection and black mark on my credit file. Debt to salary ratio is not the best but i am a home owner and been in my occupation many many years.

Thanks

[Deleted User] · 2 December 2019 at 1:55PM

It'll depend on affordability, which from what you say, will probably be a struggle.

However, an application won't lead to any 'black marks', whether accepted or not. Just a search.

DrEskimo · 2 December 2019 at 3:16PM

Do you have GAP insurance?

If not, be aware that you may have a shortfall between what Admiral will payout for your car, and the amount you still owe on the finance.

Do you know what your current settlement figure is on the written off car? Have you had any indication of what value Admiral will be offering?

kite99 · 2 December 2019 at 3:28PM

The car was nearly on the end of its term so the settlement figure and value from online valuations/like for like models is actually in my favour so there shouldn't be a shortfall, and if so minimal - luckily!

mrabz · 2 December 2019 at 3:55PM

Just remember, you will be paid market price for the car, not what online valuations may state. GAP Insurance covers this.

DrEskimo · 2 December 2019 at 5:47PM

kite99 wrote: »

The car was nearly on the end of its term so the settlement figure and value from online valuations/like for like models is actually in my favour so there shouldn't be a shortfall, and if so minimal - luckily!

Ah OK.

As above, lets hope that Admirals valuation is similar to the online valuations you are getting. They should be higher, as it's the price to buy a similar car to the one directly before it was written off.

GAP can be a good way to negate this risk (and vehicle replacement/return to invoice will also cover the depreciation as well). For the small price using online insurers, I feel the benefit really does outweigh the cost. In your current situation it would have been worth thousands, as you would be getting a brand new car if you had vehicle replacement, despite being towards the end of the agreement.

Andyjflet · 4 December 2019 at 6:08PM

I work in finance for VWFS, it will be down to affordability, some of my customer can fund two or three cars, some, VWFS want contra settle before they will pay out on the new one.
Just get VW to run the proposal.

PCP finance

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