Options at the end of PCP

[JXN1990]

I'm looking for some advice. I've just come to the end of a PCP term with my Fiesta ST and ideally, I want to see what the new Polo GTI looks like before I decide to do anything.

I tried to see if there was an option to extend PCP for a few months (under the guise that I was waiting for the new Fiesta ST) and the finance company said that it was a fairly straightforward process, I just needed to speak to the dealer, I spoke to them and they agreed that it was straightforward but that I need to speak to the Ford finance and ask them to extend. I spoke to them again and they again, said that they need authorisation from the dealership manager to do anything... so I spoke to the dealer again and they've said that I'll need to go in and have them refinance the final payment over a few years, which they'll then cancel whenever I feel like a new car but that the refinance could be at a much higher APR.

Is this genuinely the case or are they just trying to pull a fast one? Because I'm not far off being able to afford the final payment and if they want to put me on a new deal for a few years then I might as well just take out a loan elsewhere and buy the car outright.

[kiethton]

How does the current car value compare to their GFV?

This would form the basis of my next step.

Either refinance (elsewhere) and get the final payment covered or hand the car back if out of the money and buy a anger to use for a month or 2 whilst waiting on a replacement

[daemon]

JXN1990 said:

I'm looking for some advice. I've just come to the end of a PCP term with my Fiesta ST and ideally, I want to see what the new Polo GTI looks like before I decide to do anything.

I tried to see if there was an option to extend PCP for a few months (under the guise that I was waiting for the new Fiesta ST) and the finance company said that it was a fairly straightforward process, I just needed to speak to the dealer, I spoke to them and they agreed that it was straightforward but that I need to speak to the Ford finance and ask them to extend. I spoke to them again and they again, said that they need authorisation from the dealership manager to do anything... so I spoke to the dealer again and they've said that I'll need to go in and have them refinance the final payment over a few years, which they'll then cancel whenever I feel like a new car but that the refinance could be at a much higher APR.

Is this genuinely the case or are they just trying to pull a fast one? Because I'm not far off being able to afford the final payment and if they want to put me on a new deal for a few years then I might as well just take out a loan elsewhere and buy the car outright.

You cant just extend for a few months. You'll need to pay the full residual value via a loan, savings or combination and then sell the car on later and repay the loan.

You would be much better to get a cheap personal loan for any difference between what you're putting in yourself and the residual value.

[JXN1990]

kiethton said:

How does the current car value compare to their GFV?

This would form the basis of my next step.

Either refinance (elsewhere) and get the final payment covered or hand the car back if out of the money and buy a anger to use for a month or 2 whilst waiting on a replacement

Car is worth 2k more than the final payment.

[daemon]

JXN1990 said:

kiethton said:

How does the current car value compare to their GFV?

This would form the basis of my next step.

Either refinance (elsewhere) and get the final payment covered or hand the car back if out of the money and buy a anger to use for a month or 2 whilst waiting on a replacement

Car is worth 2k more than the final payment.

When you say "worth" - do you mean relative to trade price or relative to what people or dealers are asking for them?

[JXN1990]

daemon said:

When you say "worth" - do you mean relative to trade price or relative to what people or dealers are asking for them?

Relative to trade price. 64Reg, ST-3, Blue, 21,000 miles.

Final payment is 8k, Dealer offered 10k, they sell for 12k minimum

[kiethton]

I'd clear the balance now then, using whatever savings you can, topped up by a 2.8% Sainsburys loan

[mcflurry]

daemon said:

You cant just extend for a few months. You'll need to pay the full residual value via a loan, savings or combination and then sell the car on later and repay the loan.

You would be much better to get a cheap personal loan for any difference between what you're putting in yourself and the residual value.

At the end of my last PCP, in addition to the usual car return and pay balloon options, Toyota also offered me another loan for 2 years at 2.5% APR to clear the balance (£5k value of car, PCP balloon £4k)

[daemon]

mcflurry said:

daemon said:

You cant just extend for a few months. You'll need to pay the full residual value via a loan, savings or combination and then sell the car on later and repay the loan.

You would be much better to get a cheap personal loan for any difference between what you're putting in yourself and the residual value.

At the end of my last PCP, in addition to the usual car return and pay balloon options, Toyota also offered me another loan for 2 years at 2.5% APR to clear the balance (£5k value of car, PCP balloon £4k)

Which is exactly what i said. In your case, Toyota were trying to get a bit of extra business and offer you a loan facility.

[daemon]

JXN1990 said:

daemon said:

When you say "worth" - do you mean relative to trade price or relative to what people or dealers are asking for them?

Relative to trade price. 64Reg, ST-3, Blue, 21,000 miles.

Final payment is 8k, Dealer offered 10k, they sell for 12k minimum

Seems a no brainer then. Pay the residual with savings / cheap loan, drive on as long as you need then trade it in / sell it

[JXN1990]

Okay, cheers for the advice. I've went ahead and got a loan to cover the final payment, knowing that I can hold on to it for a while longer and trade in for a profit when needed.