PCP ending in September with positive equity - options?
Discussion
Hi all,
I ve got an i20N with the £9k balloon payment coming up in September.
I love the thing and was all set for getting a loan to pay off the balloon payment but the thought of getting something else (cheaper) and not having monthly payments is tempting. Moving from renting to a house in the next year with the missus and generally being to save money and afford things is taking priority in my mind over enjoying my little go kart.
Only thing is I don’t honestly know what happens when the car is worth more (£16-17k it seems). If I rocked up at a dealer and bought a car for £9k (just an example) and traded the i20N once I’d bought it from finance company (I’m aware using a loan means whoever supplied the loan owns it until paid off), would they give me the balance? It seems stupid to consider but I know car dealers don t just hand out cash so I figure I want to know these things.
If it came down to it then just having a runabout where I only pay for fuel, maintenance and insurance would be fine as priorities shift as I realise I’m sat on something worth more than Id be paying but I can t square it in my head.
I guess if it put it on Auto Trader I could sell it privately once I ve agreed to buy the car at the end of the agreement but it s hassle.
So please help me figure out my options.
Seems to be
1. Get a loan to pay off the balloon - not the end of the world
2. Give the car back - no monthlies but then need to buy something else which probably means monthlies
3. Pay the balloon and then sell it privately
4. Pay the balloon then find a dealer or WBAC or something to buy it
5. Find something for less than the worth of mine and use the difference to pay off more of the loan?
Anything else?
I ve got an i20N with the £9k balloon payment coming up in September.
I love the thing and was all set for getting a loan to pay off the balloon payment but the thought of getting something else (cheaper) and not having monthly payments is tempting. Moving from renting to a house in the next year with the missus and generally being to save money and afford things is taking priority in my mind over enjoying my little go kart.
Only thing is I don’t honestly know what happens when the car is worth more (£16-17k it seems). If I rocked up at a dealer and bought a car for £9k (just an example) and traded the i20N once I’d bought it from finance company (I’m aware using a loan means whoever supplied the loan owns it until paid off), would they give me the balance? It seems stupid to consider but I know car dealers don t just hand out cash so I figure I want to know these things.
If it came down to it then just having a runabout where I only pay for fuel, maintenance and insurance would be fine as priorities shift as I realise I’m sat on something worth more than Id be paying but I can t square it in my head.
I guess if it put it on Auto Trader I could sell it privately once I ve agreed to buy the car at the end of the agreement but it s hassle.
So please help me figure out my options.
Seems to be
1. Get a loan to pay off the balloon - not the end of the world
2. Give the car back - no monthlies but then need to buy something else which probably means monthlies
3. Pay the balloon and then sell it privately
4. Pay the balloon then find a dealer or WBAC or something to buy it
5. Find something for less than the worth of mine and use the difference to pay off more of the loan?
Anything else?
Edited by matherto on Tuesday 15th July 16:23
Options:
Trade it in - if the buyer is trade they should settle the PCP (9k), and the rest either pays for the new car and or goes to you if some left over. Yes, they should pay you. A bit like trading a Ferrari for a Fiesta, you would want the extra back.
Pay off the balloon - it's yours then.
Hand it back - they won't pay you the extra though, so probably not a good idea.
Trade it in - if the buyer is trade they should settle the PCP (9k), and the rest either pays for the new car and or goes to you if some left over. Yes, they should pay you. A bit like trading a Ferrari for a Fiesta, you would want the extra back.
Pay off the balloon - it's yours then.
Hand it back - they won't pay you the extra though, so probably not a good idea.
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