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    • akadessie
    • By akadessie 16th Apr 18, 5:09 PM
    • 4Posts
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    akadessie
    PCP Help
    • #1
    • 16th Apr 18, 5:09 PM
    PCP Help 16th Apr 18 at 5:09 PM
    Hi, 3 years ago we bought a new Nissan Qashqai on a PCP deal. It's a great car, which we put 8K down on, with monthly payments of 149.

    The deal is now finishing and we went to the Garage last week; we don't have any more deposit to put down to speak of, and the rather disinterested salesman advised that to either re-finance or replace with a new one our monthly payments are likely to go up to 350. This is not affordable for us.

    Having done a bit of scouting around I am coming to the conclusion that we should hand it back and get a deal with someone else (Vanarama offer a 5 year deal I think, with monthly payments around 200, with 1500 deposit, which I think we can do). Obviously we then lose what we've put into the car so far which is a shame, but is there any other reason why we shouldn't go down that route? What other options do we have? I will talk to the bank tomorrow about a loan to pay the 11350 still owing off, but we plan to remortgage next year to fund a big holiday (50th birthday / final family blow up with late teenage children) which I don't want to jeopardise.
Page 1
    • Cornucopia
    • By Cornucopia 16th Apr 18, 5:19 PM
    • 10,487 Posts
    • 10,648 Thanks
    Cornucopia
    • #2
    • 16th Apr 18, 5:19 PM
    • #2
    • 16th Apr 18, 5:19 PM
    How much is the car worth compared to the PCP's GFMV? That figure will tell you whether it is worthwhile trying to find a suitable trade-in deal or not. Otherwise, as you say, give the car back.

    Although you say: "we then lose what we've put into the car so far which is a shame", this isn't really how PCPs are intended to work. i.e. the idea is to pay for the car's depreciation over the period of the deal, leaving little or nothing as equity in the vehicle at the end of the term. Unfortunately, your original 149pm was never realistic to achieve this without the 8k deposit. (Although the corresponding equivalent monthly payment of 371 over 36 months looks excessive).

    If you are considering handing it back, the only other thing to be aware of are possible penalty charges for excess mileage or poor condition.#

    Edit to add: If you want another Qashqai, then I'd suggest looking at a Lease (where prices start from c. 200pm, with 1200 deposit, depending on model and mileage).
    Last edited by Cornucopia; 16-04-2018 at 5:28 PM.
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    • bris
    • By bris 17th Apr 18, 12:07 AM
    • 7,802 Posts
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    bris
    • #3
    • 17th Apr 18, 12:07 AM
    • #3
    • 17th Apr 18, 12:07 AM
    Putting a large deposit down on a PCP is never a good idea, it's instantly lost. Depreciation sees to that, you can get a similar car for about 200-250 a month with about a grand up front on a 3 year deal.


    that's just over 8k, that makes your last deal a very bad deal.


    If it's only 3 years old whats it worth? It should be worth a bit more than the settlement figure, the difference could be your deposit on the next one.
    • Tarambor
    • By Tarambor 17th Apr 18, 7:00 AM
    • 3,395 Posts
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    Tarambor
    • #4
    • 17th Apr 18, 7:00 AM
    • #4
    • 17th Apr 18, 7:00 AM
    Putting a large deposit down on a PCP is never a good idea, it's instantly lost. Depreciation sees to that, you can get a similar car for about 200-250 a month with about a grand up front on a 3 year deal.
    Originally posted by bris
    Makes no difference. You still lose the same amount of money with a small deposit, you just lose it via larger monthly payments instead.
    • akadessie
    • By akadessie 19th Apr 18, 3:39 PM
    • 4 Posts
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    akadessie
    • #5
    • 19th Apr 18, 3:39 PM
    • #5
    • 19th Apr 18, 3:39 PM
    Thanks all, I think I'm going down the refinance route - whichever route will be monthly payments and we need a car, so may as well have something to show at the end. I'll get a loan with the bank to pay off over 5 years, and I think at the end we still have a part-exchangeable car, disaster permitting.
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