PCP end of term questions
Discussion
Hopefully someone can answer the below for me as this is my first PCP I have taken out. I plan on keeping the car to the end of the deal (24 months) unless the dealer offers me something amazing, but it is looking likely i will buy private/dealer next time with a personal loan on a 2-3 year old car.
1. I plan on handing the car back say 2-3 days before it is 24 months old but would have paid my last PCP monthly payment, do I need to have the 2nd service done, my milage is not enough so it will be time intervals of every 12 months?
2. Do I need to tell the dealer/finance house if i want to sell to a dealer/WBAC and let them pay my balloon payment, or do I pay the balloon and then sell to dealer/WBAC ? again i would do this just before the cars 2nd birthday but after my last PCP monthly payment.
3. Can I trade in my car with a used car and let this dealer pay my balloon and any equity will go towards said used car, again my last PCP monthly payment would have been paid and i hope to have a deal in place with another car before my cars 2nd birthday.
4. Im right in thinking I could do any of the above say 2 months before my PCP deal ends and just keep the 2 monthly payments I owe saved up and pay as necessary so I have not broken any agreement ?
Thanks in advance
Tony
1. I plan on handing the car back say 2-3 days before it is 24 months old but would have paid my last PCP monthly payment, do I need to have the 2nd service done, my milage is not enough so it will be time intervals of every 12 months?
2. Do I need to tell the dealer/finance house if i want to sell to a dealer/WBAC and let them pay my balloon payment, or do I pay the balloon and then sell to dealer/WBAC ? again i would do this just before the cars 2nd birthday but after my last PCP monthly payment.
3. Can I trade in my car with a used car and let this dealer pay my balloon and any equity will go towards said used car, again my last PCP monthly payment would have been paid and i hope to have a deal in place with another car before my cars 2nd birthday.
4. Im right in thinking I could do any of the above say 2 months before my PCP deal ends and just keep the 2 monthly payments I owe saved up and pay as necessary so I have not broken any agreement ?
Thanks in advance
Tony
With a PCP it is generally better to ask a dealer for a PX value against your next car (if your going to use a dealer) without telling them its on a PCP.
The PX offered in most cases will be more than the GFV therefore giving you some equity to put into your next car. If you go ahead the dealer will settle the finance on your PCP (pay the GFV amount) and deduct the equity from the cost of the new car, leaving you to finance the difference or pay cash.
In the unlikly event that the PX value is less than the GFV, just hand the car back. This is very rare these days as it means the finance co taking a hit and they don't like doing that.
I would start looking a month or two before your PCP ends, nothing to stop you settling the PCP early if need be. You just ask the finance co for a settlement figure and the dealer you buy the new car off will take care of this and pay it.
The PX offered in most cases will be more than the GFV therefore giving you some equity to put into your next car. If you go ahead the dealer will settle the finance on your PCP (pay the GFV amount) and deduct the equity from the cost of the new car, leaving you to finance the difference or pay cash.
In the unlikly event that the PX value is less than the GFV, just hand the car back. This is very rare these days as it means the finance co taking a hit and they don't like doing that.
I would start looking a month or two before your PCP ends, nothing to stop you settling the PCP early if need be. You just ask the finance co for a settlement figure and the dealer you buy the new car off will take care of this and pay it.
Edited by oldnbold on Sunday 13th July 19:50
Here's a whacky, left-field suggestion:
You're going to go to a dealer and buy a two year old car? Presumably that car will have all the dealer margin on it and be quite expensive? Presumably you will have to finance it?
Why don't you get a loan for your final balloon payment and buy "your own" two year old car? It will be much cheaper.
You're going to go to a dealer and buy a two year old car? Presumably that car will have all the dealer margin on it and be quite expensive? Presumably you will have to finance it?
Why don't you get a loan for your final balloon payment and buy "your own" two year old car? It will be much cheaper.
I would start getting prices from group buyers and webuyanycar etc. a month or two before the end, if you have some equity sell it to them.
The buyer always clears the finance generally.
You could try it privately for a grand more as well, same again, get the buyer to settle finance and pay you any equity.
If you sell it at 23 months it isn't even due a service then.
The buyer always clears the finance generally.
You could try it privately for a grand more as well, same again, get the buyer to settle finance and pay you any equity.
If you sell it at 23 months it isn't even due a service then.
If your plan is to part exchange the vehicle with another dealer then get a px price assuming you don't get the service completed - no point paying for this if they are only going to service it prior to the next owner taking it on. The finance company is not interested in the service history or mileage covered UNLESS they take possession at the end of the term.
You can leave it up to the garage to pay off the final balloon payment - but be aware that if they don't pay, you are responsible for it.
You can leave it up to the garage to pay off the final balloon payment - but be aware that if they don't pay, you are responsible for it.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff