Any way of retaining equity in PCP car when downgrading to a cheaper second hand car?

[Scarfacé]

hi guys,

As per title really.

Wife has a focus st-3 on pcp (bought brand new from Ford in march 2017, which comes to an end in March 2020. Although pcp has been great, our circumstances have changed, have a child that is nearly two years old we now went to replace it with a cheaper second hand family car, like a ford kuga.

Now in theory I could just give the focus back to ford and buy a second hand kuga and the simple as that.


however, I’m almost certain that there is positive equity in the car and I would lose it if I just give the car back.

Does anyone know if a dealer would let me unlock the equity by trading in the car against a cheaper second hand car.

In a made up example if the balloon was 11k but the car trade in value was 13k, would they let me buy a 5k second hand car by trading the car in plus 3k. So they would effectively be buying the car off me for 13k, paying the 11k pcp loan off and using the 2k equity toward a deposit on the second hand car.

Any other suggests on best way forward appreciated. Thanks

 

[Scarfacé]

I think people are confused or I’ve not been clear ... the pcp is up in March so not long to go.

I want to go down to a second hand kuga.

Question is will they take the focus which will be worth more than a second hand kuga and pay off the pcp?

 

[Scarfacé]

Do you have a current settlement figure from the finance company?

If that is less than the value of the car, you'll get the difference back in cash or as a deposit/contribution for something else.

If it is more than the value of the car, you'll need to stump up the rest to settle it

Without knowing the settlement and p/x value, you dont and cant know the answer

Not got a settlement figure it I wanted to end the agreement right now but the ballon/settlement at the end of the pcp (March) is Less than £11k (think it’s about £10,500). It’s a fully specced st3 with only about 20k on the clock, and I know from looking at trade in values and auto trader that a three year old mint conduction low mileage focus st3 is worth more than 10-11 grand.


I do know that I could use any positive equity towards another pcp. I could even do that at another dealer by trading the car in and getting them to pay the balloon.

However, I didn’t think what you have said about them stumping up cash for any positive equity was true? I thought that if I choose to give the car back at the end of the pcp term then that’s that e.g if the car trade in value was 13k, I didn’t think they are obliged to give me the £2500 as cash? If that is really the case then that’s amazing and I’ll just take any positive equity and put it towards buying a second hand family wagon. Then I can hang on my BMW M4 for longer