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  • FIRST POST
    • Simon 23259
    • By Simon 23259 10th Jul 18, 11:50 AM
    • 2Posts
    • 0Thanks
    Simon 23259
    Break a PCP
    • #1
    • 10th Jul 18, 11:50 AM
    Break a PCP 10th Jul 18 at 11:50 AM
    Hi all,

    I'm looking for some advice, I have an existing PCP, this is my 2nd one, I traded my original PCP in for a diesel as I was doing more than triple my original milage in a month after a change of job.

    I've since seen the light and want an older car now I have other priorities in my life.

    Audi have told me that to settle this car I would need to fork out 3k.

    I want to know if I could take out a new PCP with them, essentially trading this car in for a new one where Audi absorb the negative equity and apply it to the new finance agreement and then cancel within 14 days if I can, or immediately settle without having driven the car more than 10 miles?

    Any advice is welcome

    Thanks

    Simon
Page 1
    • Nobbie1967
    • By Nobbie1967 10th Jul 18, 11:56 AM
    • 796 Posts
    • 878 Thanks
    Nobbie1967
    • #2
    • 10th Jul 18, 11:56 AM
    • #2
    • 10th Jul 18, 11:56 AM
    I don't think you understand how PCP works, if you have negative equity, you owe this money irrespective of any future deals you take out, it doesn't get absorbed by the dealer, they just hide it in the monthly payments. If you get a new PCP, you will be stuck with paying the depreciation on another car as well as this 3k.
    • Simon 23259
    • By Simon 23259 10th Jul 18, 12:03 PM
    • 2 Posts
    • 0 Thanks
    Simon 23259
    • #3
    • 10th Jul 18, 12:03 PM
    • #3
    • 10th Jul 18, 12:03 PM
    You're right, I don't fully understand it which is why I'm looking for advice.

    My first car was about 1k in negative equity which I was told was applied to the new car.

    So if I take out a new PCP and this is then included in the monthly payments, are you saying that even if I settle from day two I will still have the negative equity to settle?
    • Oakdene
    • By Oakdene 10th Jul 18, 12:07 PM
    • 2,444 Posts
    • 8,828 Thanks
    Oakdene
    • #4
    • 10th Jul 18, 12:07 PM
    • #4
    • 10th Jul 18, 12:07 PM
    You're right, I don't fully understand it which is why I'm looking for advice.

    My first car was about 1k in negative equity which I was told was applied to the new car.

    So if I take out a new PCP and this is then included in the monthly payments, are you saying that even if I settle from day two I will still have the negative equity to settle?
    Originally posted by Simon 23259

    As in pay off the total contracted price?


    If this is what you mean then it, the negative equity, will already form a chunk of the total amount.
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydion ddolen,
    Dau enaid ond un taith.


    • k3lvc
    • By k3lvc 10th Jul 18, 12:22 PM
    • 2,371 Posts
    • 3,928 Thanks
    k3lvc
    • #5
    • 10th Jul 18, 12:22 PM
    • #5
    • 10th Jul 18, 12:22 PM
    If you think you've found a magical way of getting out of the 3k then forget it.

    You walk into dealer with your car and start a new PCP on a 15k car you'll owe 18k (plus any interest). Assuming you then cancel new PCP you'll still owe 18k but only have a 15k car (assuming any grace period - a 12k car if not )
    • motorguy
    • By motorguy 10th Jul 18, 12:48 PM
    • 17,304 Posts
    • 10,443 Thanks
    motorguy
    • #6
    • 10th Jul 18, 12:48 PM
    • #6
    • 10th Jul 18, 12:48 PM
    Hi all,

    I'm looking for some advice, I have an existing PCP, this is my 2nd one, I traded my original PCP in for a diesel as I was doing more than triple my original milage in a month after a change of job.

    I've since seen the light and want an older car now I have other priorities in my life.

    Audi have told me that to settle this car I would need to fork out 3k.

    I want to know if I could take out a new PCP with them, essentially trading this car in for a new one where Audi absorb the negative equity and apply it to the new finance agreement and then cancel within 14 days if I can, or immediately settle without having driven the car more than 10 miles?

    Any advice is welcome

    Thanks

    Simon
    Originally posted by Simon 23259
    The holes in your plan :-
    • If you cancel the agreement, you'd still owe the dealer all the money you commited to pay for the car including the 3K negative equity
    • Buying another car to get out of negative equity will lead to even more negative equity.

    Either
    • Find the 3K to pay the negative equity
    • Drive the car to the end of the term and hand it back
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • almillar
    • By almillar 10th Jul 18, 12:48 PM
    • 7,540 Posts
    • 3,100 Thanks
    almillar
    • #7
    • 10th Jul 18, 12:48 PM
    • #7
    • 10th Jul 18, 12:48 PM
    My first car was about 1k in negative equity which I was told was applied to the new car.
    In which case, you hand the car back, walk away, and into another dealership. Start from 0, not -1,000.

    They will allow you to start another PCP, they'll love it. They will not 'absorb' any loss, they'll wrap it up into your new PCP. Just watch what they'll expect you to pay!
    • Arklight
    • By Arklight 10th Jul 18, 12:50 PM
    • 1,466 Posts
    • 2,302 Thanks
    Arklight
    • #8
    • 10th Jul 18, 12:50 PM
    • #8
    • 10th Jul 18, 12:50 PM
    It must be fun driving an Audi. Vroooooooooooooommm!
    • Mercdriver
    • By Mercdriver 10th Jul 18, 1:53 PM
    • 2,015 Posts
    • 1,384 Thanks
    Mercdriver
    • #9
    • 10th Jul 18, 1:53 PM
    • #9
    • 10th Jul 18, 1:53 PM
    Watch out, OP, you'll soon see an Autorader ad for an old Almera...
    • foxy-stoat
    • By foxy-stoat 10th Jul 18, 2:25 PM
    • 2,667 Posts
    • 1,533 Thanks
    foxy-stoat
    Best thing you can do is hand them the 3 large and the keys to the car - hopefully you havent damaged it.

    Then go and buy another cheaper car for cash using a bank loan or something else.
    • AdrianC
    • By AdrianC 10th Jul 18, 2:31 PM
    • 18,379 Posts
    • 16,601 Thanks
    AdrianC
    You're right, I don't fully understand it which is why I'm looking for advice.

    My first car was about 1k in negative equity which I was told was applied to the new car.

    So if I take out a new PCP and this is then included in the monthly payments, are you saying that even if I settle from day two I will still have the negative equity to settle?
    Originally posted by Simon 23259
    Yes, absolutely.


    "Straight" PCP - you walk in, "buy" a 15k car. You borrow 15k. If you cancel, you hand back 15k car, you no longer owe 15k.

    PCP with 3k -ve equity - you walk in, "buy" a 15k car. You borrow 18k. If you cancel, you hand back 15k car, you no longer owe 15k. You still owe 3k.
    • motorguy
    • By motorguy 10th Jul 18, 3:13 PM
    • 17,304 Posts
    • 10,443 Thanks
    motorguy
    Yes, absolutely.


    "Straight" PCP - you walk in, "buy" a 15k car. You borrow 15k. If you cancel, you hand back 15k car, you no longer owe 15k.

    PCP with 3k -ve equity - you walk in, "buy" a 15k car. You borrow 18k. If you cancel, you hand back 15k car, you no longer owe 15k. You still owe 3k.
    Originally posted by AdrianC
    If you cancel the finance agreement you still owe the seller 15K.

    They're not obliged to simply take the car back and if they do they could quite rightly pursue you for all associated costs.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Nobbie1967
    • By Nobbie1967 10th Jul 18, 3:25 PM
    • 796 Posts
    • 878 Thanks
    Nobbie1967
    You're right, I don't fully understand it which is why I'm looking for advice.

    My first car was about 1k in negative equity which I was told was applied to the new car.

    So if I take out a new PCP and this is then included in the monthly payments, are you saying that even if I settle from day two I will still have the negative equity to settle?
    Originally posted by Simon 23259
    Sorry if that sounded snarky, clearly if you understood you wouldn't have been asking the question!!!128578;
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