PCP and Equity.

Clearcut · 9 Dec 2018 at 09:55

Morning, I took a car on PCP 4 years ago and I hand it back in January. My plan is to exchange it. The set mileage was 8,000 per year (32,000 overall) but I have only put 10,000 on it in total. Is it likely that the car will be worth more than the balloon payment, giving me equity to put towards the next. I can Google but I prefer the answer to be black and white.

Thanks.

Clearcut · 9 Dec 2018 at 10:26

2011 1.6 mK3 Focus (Petrol). £3,200
46,000 miles

Thanks

Clearcut · 9 Dec 2018 at 10:31

Yes it is. Thanks Fox.

Clearcut · 31 Dec 2018 at 10:48

You will have to forgive my ignorance with PCP. I'm now in the position of, in order to avoid the balloon payment been taken by direct debit (which I don't have) at the end of January, I have a deadline of today to state if I am to hand the car back, or find another car by Jan 28th - which may be difficult (not sure how smoothly that works).

What would you do? Would it be best to call telling them I am handing it back and still look for something, or risk it?

I only have an automatic license so my choices are more limited.

Thanks.

Clearcut · 31 Dec 2018 at 14:35

Thanks for the answers, unfortunately, I can't raise the funds and probably couldn't sell it in time. May have to re-finance it.

Clearcut · 4 Jan 2019 at 07:04

'Semi' outcome. I found a car at my original dealers and as part of the process they take the car as part exchange. The original finance was set at 8000 miles per year (32,000 for period of contract) I actually did 10 over the 4 years. Despite this and the car being in excellent condition, they offered me £3,600 (£250 equity). The salesman actually suggested I try Webuyanycar. I got a quote online for £5,000. I took it to them and after a ridiculous amount of scrutiny - tiny paint chips etc. they knocked it down to £4,000 take it or leave it.

At the end of the day, the finance is settled, I have the deposit for the new car and £350 in my back pocket so I'm fine with that.

There is one thing however, he said it would take 5 working days for the finance settlement to go through. It never crossed my mind at the time but I have a deposit on another car which I now can't finance for at least 5 days. So as it stands, Webuyanycar have the car and the money for the next week. This is ridiculous.

Clearcut · 4 Jan 2019 at 09:04

Thanks for confirming the position I am in.