Keeping Car with Negative Equity

[Lambo FirstBlood]

Looking to see if anyone has had a similar experience:

I have a car on PCP with a balloon due in a few months and it’s upside down by quite a long way (£30k - £40K Negative equity). It should be even worse than that because due to COVID, I haven’t driven anywhere near the miles allowed in my agreement.

I’m fully aware that I can give it back and the losses are the finance company’s problem, but I like the car and would quite like to keep it. Clearly I’m not going to pay a ballon that is £30,000 - £40,000 more than the value though.

Had anyone been in this situation and had the finance company consider a low bid?

I realise all they would do normally is sell it at auction and they aren’t going to get any more for it there, but I wondered if anyone had any experience of this?

I know, I could try and find the auction and buy it back but would prefer to avoid the hassle.

Cheers,

LFB

[Driver101]

This was another thread recently.

https://www.pistonheads.com/gassing/topic.asp?h=0&...

That's a staggering amount to get the balloon payment wrong by.

[Turbo cab]

As the saying goes if you don't ask you don't get.

I would personally speak to the supplying dealer if you are friendly with them and see what there advise would be and also what a reasonable trade bid would be, at least then you have an opening gambit to start with.

[red_slr]

Are you sure the GFV is that far out?
As in don't look at screen prices, look at auction prices.

[Lambo FirstBlood]

red_slr said:

Are you sure the GFV is that far out?
As in don't look at screen prices, look at auction prices.

Yes, I’m pretty sure. Dealer has confirmed it.

[Lambo FirstBlood]

Driver101 said:

This was another thread recently.

https://www.pistonheads.com/gassing/topic.asp?h=0&...

That's a staggering amount to get the balloon payment wrong by.

Thanks. I couldn’t find one when I looked. I’ll take a look now.

[Lambo FirstBlood]

Anyone know how to merge threads?

12 yers on PH but no idea!

Seems the other thread has some decent incite and the general consensus is that no matter how daft, the finance house prefers to sell at auction and realise the loss rather than take a bid from the current owner.

I might try and find out where it’s being sold and buy it from the auction.

[jonah35]

Just let it go back
Buy another similar one

They won’t be of any help
Computer says no

[Rich1973]

Ask the dealer what will happen to it and buy it from where it ends up.

[shopper150]

Which company was it financed through?

[Steve H]

Am I the only one that is surprised by this?

I would hope it would just be a case of getting to talk to the right person and working out a figure. I guess the first level of phone-answerers you get won’t be much use but I wouldn’t think it would be too hard to get the attention of someone that can make a decision to reduce a £40k loss!

[Deesee]

Make an offer, sensible if you want to retain it, if its exotic it be an issue at auction, the underwriter at the finance house may take an offer.

If not ask the dealer if he will purchase it, and buy it back from him + a friendly margin, so everyone is happy, chances are you could still fund it through the same finance house

We had an issue with a F12 which I had funded, where the client did not want it any more after 6 months, it was not a PCP but an unregulated HP agreement with a bubble, we took the car back once sold and exported it for sale, and settled up with the client and the finance co.

Sitting on it for the finance company, storage, maintenance, security all adds up!