Pcp final payment

[Aprilia99]

Quick question, with values seemingly down, most likely below pcp final balloon figures, would finance companies take a lower cash sum than guaranteed future value instead of taking the car back.

Mine is coming to an end, and if prices are lower, the makes sense to see if go to auction and buy it back from there or just offer them less cash?

[Lambo FirstBlood]

Aprilia99 said:

Quick question, with values seemingly down, most likely below pcp final balloon figures, would finance companies take a lower cash sum than guaranteed future value instead of taking the car back.

Mine is coming to an end, and if prices are lower, the makes sense to see if go to auction and buy it back from there or just offer them less cash?

I called my dealer about this as one of my cars is on PCP and I only did a PCP deal as it had an unusually high GFV (70% after 3 years)

They said that they wouldn’t take a lower number as it sets a precedent they wouldn’t want to but he did go on to say that that in the height of the financial crisis, cars were given back as values fell below GFV and then went to auction and in some cases, the previous owner bought the car back from auction for considerably less (20%+) than the GFV.

[Jamescrs]

Lambo FirstBlood said:

I called my dealer about this as one of my cars is on PCP and I only did a PCP deal as it had an unusually high GFV (70% after 3 years)

They said that they wouldn’t take a lower number as it sets a precedent they wouldn’t want to but he did go on to say that that in the height of the financial crisis, cars were given back as values fell below GFV and then went to auction and in some cases, the previous owner bought the car back from auction for considerably less (20%+) than the GFV.

I may be wrong because I'm no expert on PCP but should the question not be to the finance company rather than the dealership?

It's in the dealers interest for you to hand back and take another new deal where as the finance company may view it differently.

[akadk]

Unfortunately many finance houses are behind the times in this respect

I handed a car back that went to auction and lost the fin Co £35k ... I’ve they’d had the commercial entrepreneurial vision to offer me a 1yr extension they could have earned some interest payments and further capital ...

[Aprilia99]

Yes it’s not dealer finance. I’ll happily hand the keys back and buy at auction if no discount available...

[Lambo FirstBlood]

Jamescrs said:

Lambo FirstBlood said:

I called my dealer about this as one of my cars is on PCP and I only did a PCP deal as it had an unusually high GFV (70% after 3 years)

They said that they wouldn’t take a lower number as it sets a precedent they wouldn’t want to but he did go on to say that that in the height of the financial crisis, cars were given back as values fell below GFV and then went to auction and in some cases, the previous owner bought the car back from auction for considerably less (20%+) than the GFV.

I may be wrong because I'm no expert on PCP but should the question not be to the finance company rather than the dealership?

It's in the dealers interest for you to hand back and take another new deal where as the finance company may view it differently.

No you’re right. Mine was dealer finance so closely connected but appreciate might be different for those using 3rd parties.

In my case, the dealer would be asked to deal with the auction on the finance company’s behalf so would tell me when and where it’s going to be.

[cheeky_chops]

rang nissan up in 2017 and got my leaf at end of 2 year PCP for £2k cheaper than the GFV. They also offered 4 years 0% finance so had their hand off. Dont ask, dont get

[KungFuPanda]

The difficulty is that most of the auction houses are closed at the moment. IIRC, the larger operators such as BCA are online only and they do not allow members of the public to bid online. This may make it difficult for you to find your car and buy it back.

[page3]

cheeky_chops said:

rang nissan up in 2017 and got my leaf at end of 2 year PCP for £2k cheaper than the GFV. They also offered 4 years 0% finance so had their hand off. Dont ask, dont get

They aren't doing that now. Tried multiple times as our Leaf is due back soon. Worth 2.5K below balloon. They wouldn't budge. Bought Ioniq instead

[HTP99]

page3 said:

cheeky_chops said:

rang nissan up in 2017 and got my leaf at end of 2 year PCP for £2k cheaper than the GFV. They also offered 4 years 0% finance so had their hand off. Dont ask, dont get

They aren't doing that now. Tried multiple times as our Leaf is due back soon. Worth 2.5K below balloon. They wouldn't budge. Bought Ioniq instead

The Leaf readjusted balloon payment was a thing at the time, as was the 0% offer, all Leaf PCP'ers had that option, I something was also offered on the ZOE, as RCi didn't want thousands of ZOE's and Leaf's coming back to them with massive negative equity for them to have to deal with.

Dealers were also offered a similar option too, to take them back with all the negative equity covered.

Edited by HTP99 on Tuesday 31st March 08:45