Can you get pcp on car 1, then hp on next car after pcp?

[Ajvr2]

Hi all,

Was wondering, is it possible to take a pcp out, on say car “A”, for 3 years with “X” amount deposit and then when the contract finishes return car “A” but instead of swapping/taking out a new car (Car “B”) on pcp using car “A” as the deposit, could you take out new car “B” on hp or even get a bank loan to pay for it? (Still returning Car A as the deposit).

I hope that made sense. In other words with pcp theres 3 options At the end of the contract:

1) pay the final balloon payment.
2) give the car back as the deposit and take out a new car on pcp with it
3) give back the car and call it quits

but is it possible to:

4) give the car back as the deposit and take out a new car on hp with it? or even use a bank loan rather than hp to pay for the car

Thanks!

[Actus Reus]

Yes - you can use that equity in car A however you like.

[anonymous-user]

As above, yes, but what makes you think there will be equity in it at the end?

Its something dealers used to love to trot out to make PCP seem more attractive, but in reality you are often just breaking even at the return point - dealers/finance companies don't like to lose out and the balloon payment is often around the cars worth at the end of the agreement.

[55palfers]

These days, it's hardly worth planning that far ahead.