Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • 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
    • 346 Posts
    • 947 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.
    In 1879, armed only with their spears, their rawhide shields, and their incredible courage, the Zulus challenged the might of Victorian England.
    • marlot
    • By marlot 14th Jan 19, 7:40 AM
    • 3,752 Posts
    • 2,868 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
    • 20,423 Posts
    • 19,100 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
    • 3,428 Posts
    • 2,194 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
    • 7,703 Posts
    • 3,161 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
    • 166 Posts
    • 134 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
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

221Posts Today

1,627Users online

Martin's Twitter
  • As normal I am signing off twitter for the weekend - to spend time with mini and Mrs MSE. Hope you have a wonderfu? https://t.co/FG3sRfkIgA

  • RT @LauraFrancis9: Top crew! We may film in the freeeeeeeezing cold every week, but this bunch make it fun. (And huge thanks as always to @?

  • Turns out this is all Google served. We've been in touch and it's shutting it down which should cut it on many webs? https://t.co/8OYeMjEu4n

  • Follow Martin