Need help making a decision
Discussion
Hello all, I am after a bit of guidance/help.
1) I currently have an Abarth 500 on a PCP deal (got 1.5 years left) and I've had nothing but issues with it. I've took legal help, the lot and I'm still stuck with it. The warranty expires this year and it will also be due an MOT. With the way the car has been over the past couple of years, and it's awful reliability, I don't want to risk keeping it once the warranty runs out in case any major parts malfunction. I'm willing to put some money towards it to settle the negative equity. However, I'm unsure what to do in terms of getting rid of it. Do I trade it in or sell it privately?
2) I'm also stuck on what car to replace the Abarth with. Do I buy a second hand car (will more than likely be with a bank loan), lease one or jump back into a PCP? My Abarth experience has put me off PCP if i'm completely honest. My budget would be circa £7k.
Any help on moving forward would be appreciated.
Cheers
1) I currently have an Abarth 500 on a PCP deal (got 1.5 years left) and I've had nothing but issues with it. I've took legal help, the lot and I'm still stuck with it. The warranty expires this year and it will also be due an MOT. With the way the car has been over the past couple of years, and it's awful reliability, I don't want to risk keeping it once the warranty runs out in case any major parts malfunction. I'm willing to put some money towards it to settle the negative equity. However, I'm unsure what to do in terms of getting rid of it. Do I trade it in or sell it privately?
2) I'm also stuck on what car to replace the Abarth with. Do I buy a second hand car (will more than likely be with a bank loan), lease one or jump back into a PCP? My Abarth experience has put me off PCP if i'm completely honest. My budget would be circa £7k.
Any help on moving forward would be appreciated.
Cheers
Tony33 said:
I am guessing it is a 4 year PCP if the warranty runs out this year?
My daughter had the same car on 3 year PCP (no issues) and sold it after about 18 months as she got a company car. She managed to break even to cover the finance.
Yeah, it's a 4 year deal. I think I've just been really unlucky and got a lemon of a car. Literally every little thing has gone wrong with it, from the exhaust leaking to both interior and exterior handles falling off.My daughter had the same car on 3 year PCP (no issues) and sold it after about 18 months as she got a company car. She managed to break even to cover the finance.
2.5 years into a 4 year PCP you should be in a reasonable position in terms of breaking even. The simplest option would be another PCP and trade it in, though with the experience you had go for 3 year or choose something like a Hyundai or Kia (if any appeal) so you are under warranty for the duration. The dealers can play with discounts to give you some deposit.
If you decide to lease then you will have to sell your car and clear the finance. Also bear in mind getting out of a lease is harder than a PCP if things change over the duration of contract.
If you decide to lease then you will have to sell your car and clear the finance. Also bear in mind getting out of a lease is harder than a PCP if things change over the duration of contract.
Tony33 said:
2.5 years into a 4 year PCP you should be in a reasonable position in terms of breaking even. The simplest option would be another PCP and trade it in, though with the experience you had go for 3 year or choose something like a Hyundai or Kia (if any appeal) so you are under warranty for the duration. The dealers can play with discounts to give you some deposit.
If you decide to lease then you will have to sell your car and clear the finance. Also bear in mind getting out of a lease is harder than a PCP if things change over the duration of contract.
Cheers for your input. I'm thinking about saving for a mortgage and I've heard a few people saying that having a car on finance may prevent you from getting a mortgage so I'm not sure if taking another PCP will be ideal?If you decide to lease then you will have to sell your car and clear the finance. Also bear in mind getting out of a lease is harder than a PCP if things change over the duration of contract.
P4D said:
Cheers for your input. I'm thinking about saving for a mortgage and I've heard a few people saying that having a car on finance may prevent you from getting a mortgage so I'm not sure if taking another PCP will be ideal?
Whatever you do, PCP, PCH or bank loan for a secondhand car you are going to have something on finance. It depends when you think you might get a mortgage and what you will do for transport when you do (e.g. get a cheap car you can pay outright or get a basic runaround with a low monthly outlay.)Tony33 said:
hatever you do, PCP, PCH or bank loan for a secondhand car you are going to have something on finance. It depends when you think you might get a mortgage and what you will do for transport when you do (e.g. get a cheap car you can pay outright or get a basic runaround with a low monthly outlay.)
Yeah makes sense, it was PCP that was mentioned and it having a negative impact when coming to get a mortgage. P4D said:
Tony33 said:
hatever you do, PCP, PCH or bank loan for a secondhand car you are going to have something on finance. It depends when you think you might get a mortgage and what you will do for transport when you do (e.g. get a cheap car you can pay outright or get a basic runaround with a low monthly outlay.)
Yeah makes sense, it was PCP that was mentioned and it having a negative impact when coming to get a mortgage. Tony33 said:
s I understand it the impact will simply be the affordability aspect - i.e. all your committed outgoings, be it loans, credit cards, mobile phone contracts etc.
Correct. It helps to have less out-goings for things on some kind of finance but it's all about affordability, at the end of the day.My GF's sisters and her fella have just got a mortgage and they've both got new cars on finance on don't really get paid that much i.e. Sub 20k pa. They both managed to get a 150k mortgage between them. Their parents helped to put a bigger deposit down but it just goes to show that it is possible.
If you decide to buy, first you have to think about what the car needs to do for you and only then what you want.
There are masses of used cars out there that would get you from A to B with a degree of entertainment and style too, if you choose & buy carefully. My daily driver is a 10 year old BMW 130i with refreshed suspension and proper tyres. I enjoy every drive. It'll still be worth what I paid for it next year.
My wife has a 12 year old 3 litre Subaru that has a drinking problem & £500 VED, but has never had a significant fault in the 8 years she has been using it - it's a fantastic all-weather, do anything, go anywhere car. It's quick, quiet and comfortable and it's only depreciated about £5,000 in the years we have owned it. Even though it's thirsty and expensive to tax, it's still been very cost effective motoring. Other than normal service consumables, it's only needed 2 drop links and 2 suspension bushes in 8 years!
I'd suggest that you buy a nice older car, maybe even something with a non-pc carbons and enjoy the savings overall!
Good luck - it's stressful!
There are masses of used cars out there that would get you from A to B with a degree of entertainment and style too, if you choose & buy carefully. My daily driver is a 10 year old BMW 130i with refreshed suspension and proper tyres. I enjoy every drive. It'll still be worth what I paid for it next year.
My wife has a 12 year old 3 litre Subaru that has a drinking problem & £500 VED, but has never had a significant fault in the 8 years she has been using it - it's a fantastic all-weather, do anything, go anywhere car. It's quick, quiet and comfortable and it's only depreciated about £5,000 in the years we have owned it. Even though it's thirsty and expensive to tax, it's still been very cost effective motoring. Other than normal service consumables, it's only needed 2 drop links and 2 suspension bushes in 8 years!
I'd suggest that you buy a nice older car, maybe even something with a non-pc carbons and enjoy the savings overall!
Good luck - it's stressful!
alorotom said:
Can you not just VT it since you’re more than 50% in?? Get rid, end of??
I’d be exploring this route, however finance companies don’t like it; so in the OPs shoes I would be prepared to ask for clarification on their refurb costs after they get the car back. But be prepared to spend some cash yourself having the alloys refurbished and fixing any bigger marks/dents on the car because they will send you a bill for anything they deem outside of ‘normal’ wear and tear.Take plenty of pictures before it’s assessed/collected to cover yourself just in case.
I only know one person who has VT’d a car (through BMW finance) and it went very smoothly, although the car was immaculate and not needing any work done at all, which helped.
Mercky said:
Why has the car got awfully kurbed alloys? its no good thrashing and trashing it and expecting no trouble, you have to take care of cars if you want them to be reliable. Especially if its a Fiat 500.
How does having kurbed alloys instantly mean I've trashed it about? Majority of the faults the car has had are not caused from the way I drive the vehicle. P4D said:
alorotom said:
Can you not just VT it since you’re more than 50% in?? Get rid, end of??
I don't think I'm able to VT yet.Gassing Station | Car Buying | Top of Page | What's New | My Stuff