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  • FIRST POST
    • Investor62
    • By Investor62 13th Jan 19, 10:59 PM
    • 10Posts
    • 0Thanks
    Investor62
    PCP - pay balloon or finance new car
    • #1
    • 13th Jan 19, 10:59 PM
    PCP - pay balloon or finance new car 13th Jan 19 at 10:59 PM
    Pcp term ends in a couple of months. Need to decide whether to pay balloon or rollover pcp to purchase a new car. Car has done 16k miles over 3 yrs. balloon payment approx 11k.Advice please.
    Thanks
Page 1
    • Cetshwayo
    • By Cetshwayo 13th Jan 19, 11:04 PM
    • 449 Posts
    • 1,379 Thanks
    Cetshwayo
    • #2
    • 13th Jan 19, 11:04 PM
    • #2
    • 13th Jan 19, 11:04 PM
    What is the car worth?

    The only advice you need is, do the sums and act accordingly

    Once you have done that then have a reality check and decide whether PCP is all it is cracked up to be.
    • marlot
    • By marlot 14th Jan 19, 7:40 AM
    • 3,804 Posts
    • 2,926 Thanks
    marlot
    • #3
    • 14th Jan 19, 7:40 AM
    • #3
    • 14th Jan 19, 7:40 AM
    Pcp term ends in a couple of months. Need to decide whether to pay balloon or rollover pcp to purchase a new car. Car has done 16k miles over 3 yrs. balloon payment approx 11k.Advice please.
    Thanks
    Originally posted by Investor62
    Are you happy with the car? Would you be happy to keep it longer?

    Is it worth more or less than the balloon payment (check webuyanycar and autotrader)?
    Can you find the 16k (or a way to finance it)?
    • AdrianC
    • By AdrianC 14th Jan 19, 8:19 AM
    • 21,128 Posts
    • 19,833 Thanks
    AdrianC
    • #4
    • 14th Jan 19, 8:19 AM
    • #4
    • 14th Jan 19, 8:19 AM
    Need to decide whether to pay balloon or rollover pcp to purchase a new car.
    balloon payment approx 11k.
    Originally posted by Investor62
    If you want to keep this car, then pay the balloon.


    If you're thinking of staying on the PCP merry-go-round, then there's one piece of information that you didn't give... what's the car worth as a trade-in?


    If the answer is "less than the balloon", then hand it back.
    If the answer is "more than the balloon", then chop it in with whoever you want a new car from - it doesn't have to be the same dealer, dealer chain, or manufacturer.

    (But given that you've only done 5k/year in this one, do you REALLY need a new car every three years? How much will this one have cost you per mile in finance cost alone?)
    • Investor62
    • By Investor62 14th Jan 19, 3:37 PM
    • 10 Posts
    • 0 Thanks
    Investor62
    • #5
    • 14th Jan 19, 3:37 PM
    • #5
    • 14th Jan 19, 3:37 PM
    yes
    yes
    more than the balloon
    yes

    so keep the car
    • Investor62
    • By Investor62 14th Jan 19, 3:42 PM
    • 10 Posts
    • 0 Thanks
    Investor62
    • #6
    • 14th Jan 19, 3:42 PM
    • #6
    • 14th Jan 19, 3:42 PM
    Agree. that's why I am leaning towards keeping the car. I will have a tangible asset that I own.
    thanks
    • Ectophile
    • By Ectophile 14th Jan 19, 8:11 PM
    • 3,497 Posts
    • 2,236 Thanks
    Ectophile
    • #7
    • 14th Jan 19, 8:11 PM
    • #7
    • 14th Jan 19, 8:11 PM
    Agree. that's why I am leaning towards keeping the car. I will have a tangible asset that I own.
    thanks
    Originally posted by Investor62

    Plus, you're not paying finance every month.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
    • Investor62
    • By Investor62 14th Jan 19, 8:38 PM
    • 10 Posts
    • 0 Thanks
    Investor62
    • #8
    • 14th Jan 19, 8:38 PM
    • #8
    • 14th Jan 19, 8:38 PM
    presumably if deal is 0%apr then pcp makes more sense?
    • Investor62
    • By Investor62 14th Jan 19, 8:44 PM
    • 10 Posts
    • 0 Thanks
    Investor62
    • #9
    • 14th Jan 19, 8:44 PM
    • #9
    • 14th Jan 19, 8:44 PM
    Got 18% discount up front. I also put a fair deposit in myself as well as a 1500 dealer deposit so presumably this would point more to buying it?
    • almillar
    • By almillar 15th Jan 19, 12:48 PM
    • 7,772 Posts
    • 3,194 Thanks
    almillar
    Got 18% discount up front. I also put a fair deposit in myself as well as a 1500 dealer deposit so presumably this would point more to buying it?
    You won't get a proper answer without providing the proper numbers - car, amount paid, GFV etc...
    • WaywardDriver
    • By WaywardDriver 15th Jan 19, 2:55 PM
    • 184 Posts
    • 139 Thanks
    WaywardDriver
    You won't get a proper answer without providing the proper numbers - car, amount paid, GFV etc...
    Originally posted by almillar
    Agreed - OP needs to number crunch 4 scenarios: (1) have k11 and pay balloon; (2) have k11 and use as deposit for new PCP; (3) don't have k11 and take out loan to pay balloon; (4) don't have k11 and take out new PCP with no deposit.
    • Investor62
    • By Investor62 16th Jan 19, 9:33 PM
    • 10 Posts
    • 0 Thanks
    Investor62
    - quashquai petrol nav 1.2
    - orig price post dealer deposit Approx 19k
    - balloon approx 11k
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