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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
    • 809 Posts
    • 883 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
    • 2,443 Posts
    • 8,836 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 cydio’n ddolen,
    Dau enaid ond un taith.


    • k3lvc
    • By k3lvc 10th Jul 18, 12:22 PM
    • 2,431 Posts
    • 4,037 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
    • 17,882 Posts
    • 10,908 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
    • 7,619 Posts
    • 3,123 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
    • 1,586 Posts
    • 2,467 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
    • 2,100 Posts
    • 1,413 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
    • 3,067 Posts
    • 1,722 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
    • 19,152 Posts
    • 17,558 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
    • 17,882 Posts
    • 10,908 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
    • 809 Posts
    • 883 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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