PCP Dilemma

[Rob2005uk]

Hi All. I’m looking for some advice on the following

I have a 2014 Mercedes c class diesel on a PCP which I have had for around 18 months. It costs £330 which when I took it out was fine

However circumstances have changed since then (namely a child has entered the building) and I have changed job so my commute is now only a couple of miles each way, and whilst I can afford it, some extra pounds in the pocket would be handy

Unfortunately as it’s early in the PCP I’m in negative equity by about £1300

I’ve looked for some new cars which will allow a minimal deposit, is automatic and petrol and the Nissan Juke seems to be ticking the boxes.

Through a deal with a dealer on a new juke they are offering a Bose edition, for £288 which also takes care of the negative equity, whilst it’s not a massive reduction to the headline figure, do you guys think in the long run I’d be better off? I.e the juke should be cheaper to fuel, cheaper to run, cheaper to service, insure etc

Thanks in advance

[Rob2005uk]

Sorry no.

They will take the merc in part ex, and add the negative equity to the finance for the juke.

So all in for the new juke and to pay off the negative equity is one payment of £288

Thanks

[Rob2005uk]

I’m not really sure of the intricacies of how it works but from the conversation with salesman basically that negative amount can be added to the finance of the juke

[Rob2005uk]

SWoll said:

I'm assuming the Juke deal is for a further 3 years, and with rolling in the negative equity on the Mercedes it'll take even longer to get back into a positive state?

Personally for the sake of £50 a month I'd keep the C-Class as the Juke will be a significant step down from an ownership perspective (My wife had a 2015 C220 until recently and I had a Juke hire car for 3 months whilst waiting for my company car to be built and delivered so have spent plenty of time in both).

In a few months the negative equity situation will have reversed and you can consider you options rather than making what seems like a snap decision?

I had considered this option but worried about how long it’ll take to get into positive, because obviously as fast as I’m paying it off there will be added depreciation.

With the settlement being £15k currently and the part ex value ranging from £13k to £13,700

My guess is I’ll be positive by August/September if I’m lucky - would I be right on that?

[Rob2005uk]

Thanks for all comments. Plenty of food for thought