Ending 4yr PCP just over a year in
Discussion
I have a Seat Ibiza which is currently on a 4yr PCP agreement. I got it in Jan 19 but due to personal circumstances I need a new car, preferably a diesel or self charging hybrid.
My two issues are 1) my car currently has damage from an incident November 19 which I couldn’t afford to fix at the time, and still can’t. 2) I still have 3yrs left on the PCP
Can I trade in elsewhere and get the outstanding balance settled without fixing the damage, or will I need to get the damage fixed and then swap?
My two issues are 1) my car currently has damage from an incident November 19 which I couldn’t afford to fix at the time, and still can’t. 2) I still have 3yrs left on the PCP
Can I trade in elsewhere and get the outstanding balance settled without fixing the damage, or will I need to get the damage fixed and then swap?
Some other much better informed members will confirm but I’d be surprised if after a year of payments you’ve made much of a dent in the amount owed due to the interest.
So you might struggle to get rid of it at a price especially with damage.
If I can ask, Why do you need a new car ? What could it do that a one year old car couldn’t ?
So you might struggle to get rid of it at a price especially with damage.
If I can ask, Why do you need a new car ? What could it do that a one year old car couldn’t ?
You need to get a settlement figure from your finance company, this will tell you what you owe on the car, you can trade the car in with existing damage and roll the negative equity into a new finance package but its going to cost you dearly (I'd wager you will be at least £3k in neg eq)
You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
Edited by Jazoli on Wednesday 22 July 08:56
Options you have
1 - Part exchange at another garage, but with damage + 1 yr into 4yr PCP do not expect to come away skipping. You will be very heavy into negative equity
2 - Sell the car privately
3 - Speak with your finance company to see if anything can be done. I doubt you'll be able to terminate your contact as you're not even halfway through
This is the downside to PCPs, I have been in your position and ended up being stuck with a car I couldn't afford (I went back to uni).
I hope you can get this sorted
PB
1 - Part exchange at another garage, but with damage + 1 yr into 4yr PCP do not expect to come away skipping. You will be very heavy into negative equity
2 - Sell the car privately
3 - Speak with your finance company to see if anything can be done. I doubt you'll be able to terminate your contact as you're not even halfway through
This is the downside to PCPs, I have been in your position and ended up being stuck with a car I couldn't afford (I went back to uni).
I hope you can get this sorted
PB
I’d suggest you get a settlement figure first ( if you haven’t already )
It’s quite likely that you might owe more money on the car than it’s worth
But yes you can trade it in anywhere .. they will give you a price and settle your finance for you as part of the deal. It only becomes a problem if you owe more than it’s worth
Clearly if you could afford to repair it before you sold it then you’d get more money for it
It’s quite likely that you might owe more money on the car than it’s worth
But yes you can trade it in anywhere .. they will give you a price and settle your finance for you as part of the deal. It only becomes a problem if you owe more than it’s worth
Clearly if you could afford to repair it before you sold it then you’d get more money for it
What's the change in circumstances? Hybrid or diesel suggests an increase in mileage? How bad is the damage?
Any Ibiza should be an economical car, the only financially logical solution is to keep what you have and if your way beyond the mileage allowance at end of term then decide to pay the fees or buy the car outright. Handing back now will cost thousands of imagine
Any Ibiza should be an economical car, the only financially logical solution is to keep what you have and if your way beyond the mileage allowance at end of term then decide to pay the fees or buy the car outright. Handing back now will cost thousands of imagine
Really the best way of finding out is to request a settlement quote from your lender. Get a quote from WBAC to see how much (roughly) you’d get with selling it, although this figure is usually higher when part exchanging. Compare the two and take it from there.
As above though, an Ibiza, even if it’s older than 1 year should do all tasks just fine and will almost certainly be the cheapest solution.
As above though, an Ibiza, even if it’s older than 1 year should do all tasks just fine and will almost certainly be the cheapest solution.
Jazoli said:
You need to get a settlement figure from your finance company, this will tell you what you owe on the car, you can trade the car in with existing damage and roll the negative equity into a new finance package but its going to cost you dearly (I'd wager you will be at least £3k in neg eq)
You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
Lump n bump, isn't that illegal now? You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
Edited by Jazoli on Wednesday 22 July 08:56
Jazoli said:
You need to get a settlement figure from your finance company, this will tell you what you owe on the car, you can trade the car in with existing damage and roll the negative equity into a new finance package but its going to cost you dearly (I'd wager you will be at least £3k in neg eq)
You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
This is key, I think. Unless the excess mileage charges for any potential uptick in travel are going to be excessive I think you are likely better off staying put.You will not make any savings by switching to a diesel or hybrid as what its going to cost you to change will massively outweigh any perceived savings in fuel, I can't imagine many seat Ibiza's will do less than 40mpg anyway.
Why can't you claim on your insurance to fix the damage?
Edited by Jazoli on Wednesday 22 July 08:56
Jonny8v said:
Some other much better informed members will confirm but I’d be surprised if after a year of payments you’ve made much of a dent in the amount owed due to the interest.
So you might struggle to get rid of it at a price especially with damage.
If I can ask, Why do you need a new car ? What could it do that a one year old car couldn’t ?
I am moving away from where I currently live and the trip to and from work is 120 mile round trip. My little Seat doesn’t give me enough mileage to do this long term. So you might struggle to get rid of it at a price especially with damage.
If I can ask, Why do you need a new car ? What could it do that a one year old car couldn’t ?
DuraAce said:
So you can't afford to repair your current car, yet you want to buy a new one?
Madness!
I couldn’t afford it at the time, even with going trough insurance. I need a new car due to an increase in mileage which my current car cannot provide. Madness!
Obviously, at the time of me getting the car, I wasn’t planning on moving away but due to a change in my personal circumstances, I need to look at something else.
Fattyfat said:
What's the change in circumstances? Hybrid or diesel suggests an increase in mileage? How bad is the damage?
Any Ibiza should be an economical car, the only financially logical solution is to keep what you have and if your way beyond the mileage allowance at end of term then decide to pay the fees or buy the car outright. Handing back now will cost thousands of imagine
Moving 60 miles from where I work, resulting in 12 mile round trip to and from everyday. Any Ibiza should be an economical car, the only financially logical solution is to keep what you have and if your way beyond the mileage allowance at end of term then decide to pay the fees or buy the car outright. Handing back now will cost thousands of imagine
My car is economical, but it struggles and I would have to fill it up every other day to ensure I don’t run out of juice on the way to work or coming home
Lottie96 said:
My car is economical, but it struggles and I would have to fill it up every other day to ensure I don’t run out of juice on the way to work or coming home
That's probably true, but even with a diesel you might only gain an extra day unless you go up a lot in fuel tank capacity, and cars tend to have smaller tanks now to keep the weight down.Self-charging hybrids are massively dependent on type of use and journey conditions - it could end up being worse than you've got now.
keo said:
What is it? A 500bhp fire breathing Ibiza? Otherwise it should be well capable of 120 daily trips. It won’t be that uneconomical. It will cost you more changing cars even if the next one does do a few more mpg.
He’s a 1.0l and gets 395mpg to a full tank. Granted, my driving sometimes alters that but I did manage to get just over 400mpg a few weeks ago when I back and forth from where I am to where I am moving too. Keep the Ibiza for now and see how it actually works for you. On a long run driven sensibly you should get decent economy, it might surprise you. At this point unless you put a big deposit in you are likely to be heavily in negative equity anyway.
As others have said, get a settlement figure from the finance company, then you’ll know where you are.
As others have said, get a settlement figure from the finance company, then you’ll know where you are.
Jasey_ said:
You should call the finance co and get a price for extending the annual mileage allowance.
Getting out of the PCP so early will cost thousands !
Terminating it at this stage by the sounds of things is not going to be possible for you.
You should also calculate what the excess mileage charge is likely to be - sit down with a calculator.
Mileage allowance & excess mileage charges are only really relevant if you plan to VT or hand the car back to the finance company. Getting out of the PCP so early will cost thousands !
Terminating it at this stage by the sounds of things is not going to be possible for you.
You should also calculate what the excess mileage charge is likely to be - sit down with a calculator.
If you plan to keep it, part-ex it or sell it in the future, then the PCP mileage allowance is irrelevant*
- note: future value of the car may be affected by the prevailing mileage at the time of trade in / sale
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