Discussion
Irrespective of the PCP pros and cons that 17% interest rate is just really ridiculous. It’s so high that you should cut your losses when you can. Like you said you just wanted a car for a few years. You are paying in the region of 3000 a year for your car... 4 years is 12000. A bank loan would have made more sense....
Anyway you are where you are so you have to answer a few questions:
1- how long do I need the car before you leave the country and how much will it cost me?
2- it’s 250 rent something you can do with ease and just bear and grin it as it can cost money and time vt’ing and the. Search, buy and then sell another car?
3- just stating the obvious again...sorry 17%????!!! How did you miss that?
If needed for another year or so I would just carry on as you are
Anyway you are where you are so you have to answer a few questions:
1- how long do I need the car before you leave the country and how much will it cost me?
2- it’s 250 rent something you can do with ease and just bear and grin it as it can cost money and time vt’ing and the. Search, buy and then sell another car?
3- just stating the obvious again...sorry 17%????!!! How did you miss that?
If needed for another year or so I would just carry on as you are
Jaetten said:
Thanks for the replies folks.
The interest is high, 17%, however the PCP was recommended
Recommended by the salesman? There’s a good reason for that. The interest is high, 17%, however the PCP was recommended
I’m not trying to rub in that you seem to have made a bad deal here. Whether you decide to VT or carry on you need to learn from this.
This is worth reading:-
https://www.thecarexpert.co.uk/car-finance-volunta...
Edited by bad company on Tuesday 5th February 12:06
I think it's a little unfair to ridicule the OP, yes the APR is high but it is all done now
We know that on used cars the APR is set higher but then there is less depreciation on the vehicle
Even 0% deals can be expensive when the value of the car plummets, it doesn't neccessarily make it a wise choice
I am glad the car served its purpose OP and that's the important thing
We know that on used cars the APR is set higher but then there is less depreciation on the vehicle
Even 0% deals can be expensive when the value of the car plummets, it doesn't neccessarily make it a wise choice
I am glad the car served its purpose OP and that's the important thing
Montybaber said:
We know that on used cars the APR is set higher but then there is less depreciation on the vehicle
Ah yes, when you put it like that it makes perfect sense to spend almost £13,000 hiring a £9,500 car for four years, after which you have nothing (unless you pay a further £3,000). It may have served its purpose but Jesus I hope the OP is a bit more savvy next time round. 
I don't have paperwork to hand, but interest is accrued and not front loaded. My settlement figure is £9430.26 saving £2904.25 on interest.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
Jaetten said:
I don't have paperwork to hand, but interest is accrued and not front loaded. My settlement figure is £9430.26 saving £2904.25 on interest.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
Borrowing £9,400 on a cheap 2.8% APR loan and you'd repay £272 a month over three years and then have nothing further to pay, effectively saving you the residual value payment.The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
https://www.money.co.uk/loans/unsecured-loans.htm
Roger Irrelevant said:
Montybaber said:
We know that on used cars the APR is set higher but then there is less depreciation on the vehicle
Ah yes, when you put it like that it makes perfect sense to spend almost £13,000 hiring a £9,500 car for four years, after which you have nothing (unless you pay a further £3,000). It may have served its purpose but Jesus I hope the OP is a bit more savvy next time round. Do nothing
Try to settle the PCP and take on a bank loan instead at a vastly lower rate
Change the car.
Welshbeef said:
Pointless talking about the split milk. It’s the next move that’s important.
Do nothing
Try to settle the PCP and take on a bank loan instead at a vastly lower rate
Change the car.
Whilst its an option, i think option 3 would be a bad idea - you've a big loss on the car (hes only a year in), negative equity, and then you're in to the realms of buying another car in to which hes going to immediately be in negative equity again, etc.Do nothing
Try to settle the PCP and take on a bank loan instead at a vastly lower rate
Change the car.
I think any saving would be lost in the transition.
I'd be doing (b) - as per the figures i provided above.
Roger Irrelevant said:
Ah yes, when you put it like that it makes perfect sense to spend almost £13,000 hiring a £9,500 car for four years, after which you have nothing (unless you pay a further £3,000). It may have served its purpose but Jesus I hope the OP is a bit more savvy next time round.
I didn't say it made perfect sense at all I suspect the OP will take the advice offered on here and hop in a time machine to negotiate the APR
Buying/owning cars costs money, as long as people realise that what business is it to anyone else?
Jaetten said:
I don't have paperwork to hand, but interest is accrued and not front loaded. My settlement figure is £9430.26 saving £2904.25 on interest.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
Wow, after a year of payments on a £9,500 car you can settle it for £9,439.26!! A full £60.74 of the actual car paid off and roughly £3,060 spent on extras and interest The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
Begall said:
Wow, after a year of payments on a £9,500 car you can settle it for £9,439.26!! A full £60.74 of the actual car paid off and roughly £3,060 spent on extras and interest
Come on guys, it’s time to lay off. The op knows he didn’t do a great deal. He needs help to move forward.Begall said:
Wow, after a year of payments on a £9,500 car you can settle it for £9,439.26!! A full £60.74 of the actual car paid off and roughly £3,060 spent on extras and interest
Surely you must be aware there are additional costs associated to early settlement?Take out HP the interest is loaded into the loan from day 1 so after a year it’s liely to be the same situation then over the next 6 years loan will decrease down to zero.
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