Car Finance (PCP)

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FTBNow
FTBNow Posts: 146 Forumite
in Loans
Hi all,

Was hoping someone could help!

I currently have car finance with Black Horse, taken out 23rd March of this year.

Me and my partner are moving to a new area where a train station is within 0.5 miles of the property, and I work in the local city centre. It makes sense (certainly financially) as he drives to probably get rid of my car and instead invest in a train/travel pass of some description - the most expensive in our area is £99 a month (I currently pay about £400 a month for the car with petrol et al).

This is more in hope than expectation, but I'm assuming I would have to sell the car to a garage and hope they would give me the full amount remaining on the agreement? I assume there is no way to simply hand the car back and cancel the agreement as I'm not in a position where I have lost my job and so on.

Thanks for any advice received :)
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  • Nasqueron
    Nasqueron Posts: 8,827 Forumite
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    You can return it after paying 50% of the total package, otherwise yes if you sell it you would need to pay off the full settlement figure and it's unlikely to be lower than you'd get selling it off.
  • FTBNow
    FTBNow Posts: 146 Forumite
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    Ah I see - fair enough! I highly doubt the garage would give me what is currently outstanding on the car. It's a Vauxhall Astra 17 plate with about £12,000ish outstanding including interest, and when I purchased the car it was up for £10,700ish.

    Would getting a settlement from Black Horse, taking it to the dealer I purchased it from and asking them to match it be an option? Or is this just a messy way of going about things? I appreciate it's highly unlikely any car dealer will go for that, though.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    If the settlement figure is low enough for the dealer to sell it and make a profit then yes. Only if you bought on PCP with a low deposit and low monthly payments with a big balloon payment then I suspect there will not be enough in it.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi FTBNow


    It's worth bearing in mind you do not own a car on PCP until you have paid the full balance of the agreement. That means you need written permission from the creditor to sell the vehicle.


    You do have the right to terminate the agreement. They can hold you liable for 50% of the original agreement minus the payments you have already made. You should also check the terms and conditions of the agreement as additional charges may be incurred depending on things like how many miles you have done. As you only took the agreement out in March it's unlikely these will cause you any issues.


    If it is ever the case that you can't afford the monthly repayments head over to the DFW board for more advice.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Nearlyold
    Nearlyold Posts: 2,289 Forumite
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    As above get a Settlement figure from Black Horse and have a look at "We Buy any Car" to get an idea of how much dealers might bid you for the car. Dealers won't be interested in bidding against your settlement figure, their concern will solely be "can they make a profit" the big boys like Evans Halshaw have whole teams at Head Office devoted to pricing cars against current trends and historical data as to which brands, models, colours, trim levels, engines & optional extras sell best.
  • FTBNow
    FTBNow Posts: 146 Forumite
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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!
  • Crumble_
    Crumble_ Posts: 59 Forumite
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    We buy any car are shocking. My car is the second cheapest on autotrader at £11,000. The rest, all the same rare car are more than this.

    We buy any car - £7004. Absolute jokers!!
  • Nasqueron
    Nasqueron Posts: 8,827 Forumite
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    FTBNow wrote: »
    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!


    WBAC are essentially a customer facing front for the auction firm, of course they offer lower prices because they want to make a profit by selling your car. You can get a better price selling privately but yes it will be less than your finance (unless on 0% possibly). 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!
  • System
    System Posts: 178,094 Community Admin
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    Nasqueron wrote: »
    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!

    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.
  • Cornucopia
    Cornucopia Posts: 16,156 Forumite
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    edited 20 May 2018 at 12:45PM
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    Tarambor wrote: »
    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.

    There's really no need to be rude to other FMs regarding what you believe to be bad financial choices.
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