PCP car deal settlement

[scottS3]

Hi Folks

I have an Audi A4 on a PCP deal, and at present I owe c£19000 on it. I now want to settle the finance and sell the car.
What is the best way to do this if I dont have the cash to pay for it myself? I did think about a 0% credit card, but Ive never had a credit card and know next to nothing about them. I am saving up to try and do this with my own money, but thought that it would be worth investigating paying it off sooner than I can save up, if at all possible.

Anyone got any suggestions as to the best way to do it?

[Sarnie]

Sell car, get buyer to phone finance company and clear finance, buyer pays you the difference, buyer drives away...

[Simpo Two]

Make it easy for them - get the settlement figure yourself and present it as part of the sale price.

Finance company gets £19K from the buyer, you get £5 or whatever is left

[scottS3]

Thanks for the quick replies. I didnt think it was a good idea to do that but after searching for a while it seems reasonably common to do that.

[Gio G]

How many years are you into the agreement? If over half way, you could VT it. However @ £19k, I doubt it.

[scottS3]

What is VT? I am 11 months into a 3 year deal at present.

[rfoster]

scottS3 said:

What is VT? I am 11 months into a 3 year deal at present.

Voluntary Termination - a right you have under a regulated agreement whereby once you have paid 50% of the TOTAL amount payable (including any deposit paid) then you do have the right to just had the vehicle back to the finance company. Note - this is not halfway through the term (unless it's a hire purchase agreement with no balloon) but half of all payments. If you have a balloon then the termination point will be much closer to the end of the contract.

On a PCP agreement, if you VT the car, your mileage will be calculate pro-rata and if you're over mileage, you'll be charged for excess mileage (and for any damage to the vehicle / missed services / bald tyres etc.)

Whilst you do have this right, I would not recommend VT'ing a car as it does leave a mark on your credit file - although it's not a 'black' mark and doesn't affect your credit rating, it may have an effect on whether a finance company will consider loaning to you again.

[Gio G]

scottS3 said:

What is VT? I am 11 months into a 3 year deal at present.

Voluntary terminate the agreement. This is possible when you reach half the payments of the agreement. It will usually tell you on the agreement that figure. That is if you want to hand the car back and move on to something else. Makes sense for people for own cars on PCP that have depreciated substantially. I suspect that you are probably not there yet, unless you put in a huge deposit..

[scottS3]

you are correct. I owe c£19k on a £36k car so not quite halfway yet. I think advertising it for sale with advice that the finance must be paid by the buyer is the simplest way forward.

[Gio G]

rfoster said:

Voluntary Termination - a right you have under a regulated agreement whereby once you have paid 50% of the TOTAL amount payable (including any deposit paid) then you do have the right to just had the vehicle back to the finance company. Note - this is not halfway through the term (unless it's a hire purchase agreement with no balloon) but half of all payments. If you have a balloon then the termination point will be much closer to the end of the contract.

On a PCP agreement, if you VT the car, your mileage will be calculate pro-rata and if you're over mileage, you'll be charged for excess mileage (and for any damage to the vehicle / missed services / bald tyres etc.)

Whilst you do have this right, I would not recommend VT'ing a car as it does leave a mark on your credit file - although it's not a 'black' mark and doesn't affect your credit rating, it may have an effect on whether a finance company will consider loaning to you again.

I must be one of the lucky one's then. I VT'd my car with Audi Finance and got straight into another agreement on a new car with Audi Finance.

[rich12]

Just sell it back to the dealer.
I bought a brand new A3 on PCP and then sold it back to Audi 5 months later. I put in £3k as a deposit and came out with £2300 which I don't think is too bad for a brand new car.

[scottS3]

I would if the dealer offer was anything like reasonable, I reckon it would sell for atleast 6k more than what the dealer offered me for it.

[Mattt]

What's the value of the car?

I wouldn't advertise upfront that you want people to pay the finance company as that will put people off viewing, if someone is serious then they will investigate when you tell them at a viewing.

[rfoster]

Gio G said:

I must be one of the lucky one's then. I VT'd my car with Audi Finance and got straight into another agreement on a new car with Audi Finance.

Oh, there's no hard and fast rule on whether finance companies will offer funds after termination - some are quite happy to and some take a dimmer view on it. Audi Finance are pretty good in fairness.

[scottS3]

The value of the car is between £27k and £30k depending on where you look. The dealer offered around £22k.

[Mattt]

At 11 months into the deal that seems a lot of equity in the car, did you put down a huge deposit?

[scottS3]

Yes I put down some cash + trade in to the total value of £12.5k