Settling car pcp early 50 % rule

[cejsmith]

I’m thinking of selling my car and it appears that I’m in a bit of negative equity. I’ve been doing some research and it appears I can just hand it back under the 50% rule. My question is has anybody done it and if so have they had any problems afterwards getting car finance?

[TooLateForAName]

Plenty of people do and it doesn't seem to stop them doing more finance deals - some salesmen even encourage this.

Problem with PCP is usually the final balloon payment is so high that you struggle to benefit.

[red_slr]

I have done it twice. Once with Merc and once with BMW. Not made a jot of difference to my ability to get credit.
The only thing to watch is that you don't get stung with repair costs for any damage.

[easy_rider33]

Mine was a HP deal but the same principle. I gave it back when I was looking to change cars. There was 7k negative equity in it, so I let the finance company take the hit at auction and not me. The way I see it is that they must load it in to their interest rates and business plan. No issues with any comeback for repairs etc. If I were you i’d Just do it if it makes sense.

[cejsmith]

Because of the way mines strictured I’m over the 50% already.has anybody got experience with fca finance

[red_slr]

swerni said:

Was that a PCP?

Yes.

The merc was a Smart Car, it was just gathering dust. Was about 6 months from the end but it was just in the way.

The BMW was overpaid as the initial low monthly did not make sense to me at the time. Of course financially that was a mistake for me, but you live and learn it was a while ago. Handed it back after just over 2 years.

Merc tried to sting me for a few hundred for scratches etc. I refused and they never chased it so that was that,

[Dimebars]

cejsmith said:

Because of the way mines strictured I’m over the 50% already.has anybody got experience with fca finance

Remember, it's 50% of total payable, including interest and GFV, not just half the payments made

[cejsmith]

Dimebars said:

Remember, it's 50% of total payable, including interest and GFV, not just half the payments made

Yep I know, FCA have confirm that I can do it, I'm still thinking about it though.