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  • FIRST POST
    • paradigm
    • By paradigm 11th Jun 19, 10:03 AM
    • 13Posts
    • 0Thanks
    paradigm
    PCP Question - Negative Equity
    • #1
    • 11th Jun 19, 10:03 AM
    PCP Question - Negative Equity 11th Jun 19 at 10:03 AM
    A quick one hopefully

    I'm 7 months into a 4 year PCP and currently sat at around 6k negative equity.

    Question is: Is this gap between value and finance settle going to increase, decrease or stay broadly the same?

    I guess what I really want to know is, should I just bite the bullet now (if getting out of the PCP is essential) or am I better off waiting 6 or 12 months (noting that the ideal would be to just last the whole agreement!!).

    Thanks in advance
Page 2
    • motorguy
    • By motorguy 14th Jun 19, 8:32 AM
    • 19,325 Posts
    • 12,019 Thanks
    motorguy
    Yes, 3 would be a squeeze in a 1 series.

    Have you crunched the numbers on the best way forward?
    Originally posted by foxy-stoat
    3 would be fine in the back of a 1 series. We have one.

    I think the O/P should work with what they have currently rather than flush literally thousands down the toilet getting out of this deal nad changing now, to then flush literally thousands again down the toilet with immediate depreciation again on the next car.
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Herzlos
    • By Herzlos 14th Jun 19, 9:22 AM
    • 10,289 Posts
    • 9,875 Thanks
    Herzlos
    Yeah, you'll be financially much better off trying to endure with the current car even if you need to go and buy super compact buggies and what not.


    Are you a single car household? Might also be a lot cheaper upsizing the one that's not 7 months into a PCP.
    • Car 54
    • By Car 54 14th Jun 19, 9:27 AM
    • 4,540 Posts
    • 2,871 Thanks
    Car 54
    3 would be fine in the back of a 1 series. We have one.

    I think the O/P should work with what they have currently rather than flush literally thousands down the toilet getting out of this deal nad changing now, to then flush literally thousands again down the toilet with immediate depreciation again on the next car.
    Originally posted by motorguy
    Or in fact the precise opposite of "literally".
    • motorguy
    • By motorguy 14th Jun 19, 10:19 AM
    • 19,325 Posts
    • 12,019 Thanks
    motorguy
    Or in fact the precise opposite of "literally".
    Originally posted by Car 54
    The literally referred to the amount not to "down the toilet". I didnt say literally flush.

    But thanks for your input. I'm sure its helped the O/P a lot.
    Last edited by motorguy; 14-06-2019 at 10:21 AM.
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • Car 54
    • By Car 54 14th Jun 19, 11:29 AM
    • 4,540 Posts
    • 2,871 Thanks
    Car 54
    The literally referred to the amount not to "down the toilet". I didnt say literally flush.
    Originally posted by motorguy
    You're right. Obviously too subtle for a Friday! Apologies
    • Mercdriver
    • By Mercdriver 14th Jun 19, 1:12 PM
    • 2,820 Posts
    • 1,951 Thanks
    Mercdriver
    Yes, 3 would be a squeeze in a 1 series.

    Have you crunched the numbers on the best way forward?
    Originally posted by foxy-stoat
    TBH I wouldnt be rushing to change it then. Three kids will fit in the back of a 1 series no problem for the forseeable future. Certainly at least until you get yourself out of this negative equity position.

    I wouldnt be knee jerking in to changing a car.
    Originally posted by motorguy
    And here we have (sorry OP) a paradigm...
    • paradigm
    • By paradigm 14th Jun 19, 1:17 PM
    • 13 Posts
    • 0 Thanks
    paradigm
    Thanks everyone. TBH I've always known the least financial impact longterm would be to keep the car, that was never really the question.
    • Herzlos
    • By Herzlos 14th Jun 19, 2:35 PM
    • 10,289 Posts
    • 9,875 Thanks
    Herzlos
    If you're consigned to changing the car, then the best time to sell it is now and then clear the finance. You're going to get just as badly hosed as if you'd bought a new 1-series and sold it 7 months later, but there's likely a lot of demand for a tidy <1 year old car.


    The bigger concern is the financing - few private buyers will be able to give you cash for it, so you may need to see about selling it back to BMW, in which case you may be able to just roll the (significant) negative equity into the next car.


    Do you have any family you could get to 'take over' the PCP?
    • motorguy
    • By motorguy 14th Jun 19, 3:35 PM
    • 19,325 Posts
    • 12,019 Thanks
    motorguy
    You're right. Obviously too subtle for a Friday! Apologies
    Originally posted by Car 54
    Accepted

    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
    • motorguy
    • By motorguy 14th Jun 19, 3:38 PM
    • 19,325 Posts
    • 12,019 Thanks
    motorguy
    Thanks everyone. TBH I've always known the least financial impact longterm would be to keep the car, that was never really the question.
    Originally posted by paradigm
    Of course.

    However its maybe thinking outside the box in terms of getting the three and their gear in to a 1 series for a while or "making do" could will save you ,s.
    Life has never given me lemons.

    It has given me anger issues, anxiety, a love for alcohol and a serious dislike for stupid people, but not lemons.
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