Purchase PCP car vs giving it back and starting again!
Discussion
Hi all,
In a bit of a situation and need some advice from the hive mind.
The missus drives a 2015 Fiesta 1L ecoboost (titanium spec). She's had it on PCP from new and is coming to the end of the finance deal in the next month or two.
She paid for 6k miles per year, and the car is currently near 17/18k miles, so there may be a small excess by the time any deal is made, and the car has a few scratches / dings from other people opening their doors into it.
The final value owed is circa £6000. I think she has a bit of equity in it from trading in her previous car.
The current payments are around £199 a month, which was her going halves on the payments with a family member. Now that we've moved out, this arrangement will finish at the end of the contract, and it's not hugely in her budget to be paying £200 - £250 a month on a new car.
Initially I thought this was a no brainer, as a 2015 ecoboost Fiesta in good spec and low mileage should be worth the £6k final price, so she should get a personal loan and pay it off over the next few years, but I've seen / heard a lot of rumblings about coolant system troubles on the 1L ecoboost so now I'm not so sure.
Buy vs trade in, any thoughts?
In a bit of a situation and need some advice from the hive mind.
The missus drives a 2015 Fiesta 1L ecoboost (titanium spec). She's had it on PCP from new and is coming to the end of the finance deal in the next month or two.
She paid for 6k miles per year, and the car is currently near 17/18k miles, so there may be a small excess by the time any deal is made, and the car has a few scratches / dings from other people opening their doors into it.
The final value owed is circa £6000. I think she has a bit of equity in it from trading in her previous car.
The current payments are around £199 a month, which was her going halves on the payments with a family member. Now that we've moved out, this arrangement will finish at the end of the contract, and it's not hugely in her budget to be paying £200 - £250 a month on a new car.
Initially I thought this was a no brainer, as a 2015 ecoboost Fiesta in good spec and low mileage should be worth the £6k final price, so she should get a personal loan and pay it off over the next few years, but I've seen / heard a lot of rumblings about coolant system troubles on the 1L ecoboost so now I'm not so sure.
Buy vs trade in, any thoughts?
Kind of already answered your own question really, if she will struggle to manage the £200-250 per month for a new one then it does not make sense to do it.
A loan for £6k over 4 years will be what, circa £150 per month? Or go for a five year loan and either buy a warranty or put a bit aside each month to cover reliability issues.
A loan for £6k over 4 years will be what, circa £150 per month? Or go for a five year loan and either buy a warranty or put a bit aside each month to cover reliability issues.
A 2015 ecoboost will be worth much more than 6k bite their hand off! You will still pay 7k for a 63/14 plate from a dealer.
The coolant issues only affected early models circa 2012/2013 and if they have been in the dealer network will have had the service action to replace the weak pipe.
The coolant issues only affected early models circa 2012/2013 and if they have been in the dealer network will have had the service action to replace the weak pipe.
The Ecoboost should be fine for a few years yet, but if your girlfriend does want a change then she could get something around the £100 a month mark that she's paying now with a bit of cash in. Granted, it would be a downgrade but would get you into a new car. You are talking a fairly basic city car (Vauxhall Viva, Citroen C1, Vauxhall Adam, Fiat 500 etc) for that money in comparison to the top spec Fiesta, however.
I would still buy the Fiesta, keep it maintained and you should get a few more years out of it.
I would still buy the Fiesta, keep it maintained and you should get a few more years out of it.
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