PCP Extension - what to expect?
Discussion
My 3 year PCP on a Range Rover Sport AB is coming to an end in May. The car will be 6 years old with 43kish miles. I currently pay £420 per month. Santander have said they will offer a 12month extension although I have to wait until March to get the figures. Any experience of what these extensions typically look like? It would be good to get a view... Cheers
No direct experience, but....
If it's actually a PCP then when the term ends all you will owe is the balloon payment. Presumably you know what that is from the paperwork you already have.
Then there's the projected value of the car in May, and also the projected value of the car in May 2022. You can probably take a reasonable guess at the first with some help from WBAC & Autotrader, and you might also be able to figure out the second by looking at current prices of cars a year older than yours of a similar spec, condition and mileage (although that's probably getting too detailed).
Assuming the balloon is less than the projected value of the car in May 2021, then you're just looking at a new balloon payment payable in May 2022, and monthly payments which cover the difference in current and new balloon payments plus interest on the declining balance.
If it's actually a PCP then when the term ends all you will owe is the balloon payment. Presumably you know what that is from the paperwork you already have.
Then there's the projected value of the car in May, and also the projected value of the car in May 2022. You can probably take a reasonable guess at the first with some help from WBAC & Autotrader, and you might also be able to figure out the second by looking at current prices of cars a year older than yours of a similar spec, condition and mileage (although that's probably getting too detailed).
Assuming the balloon is less than the projected value of the car in May 2021, then you're just looking at a new balloon payment payable in May 2022, and monthly payments which cover the difference in current and new balloon payments plus interest on the declining balance.
Thanks for the feedback... You are right - but tricky to know Santander will calculate it.
omniflow said:
No direct experience, but....
If it's actually a PCP then when the term ends all you will owe is the balloon payment. Presumably you know what that is from the paperwork you already have.
Then there's the projected value of the car in May, and also the projected value of the car in May 2022. You can probably take a reasonable guess at the first with some help from WBAC & Autotrader, and you might also be able to figure out the second by looking at current prices of cars a year older than yours of a similar spec, condition and mileage (although that's probably getting too detailed).
Assuming the balloon is less than the projected value of the car in May 2021, then you're just looking at a new balloon payment payable in May 2022, and monthly payments which cover the difference in current and new balloon payments plus interest on the declining balance.
If it's actually a PCP then when the term ends all you will owe is the balloon payment. Presumably you know what that is from the paperwork you already have.
Then there's the projected value of the car in May, and also the projected value of the car in May 2022. You can probably take a reasonable guess at the first with some help from WBAC & Autotrader, and you might also be able to figure out the second by looking at current prices of cars a year older than yours of a similar spec, condition and mileage (although that's probably getting too detailed).
Assuming the balloon is less than the projected value of the car in May 2021, then you're just looking at a new balloon payment payable in May 2022, and monthly payments which cover the difference in current and new balloon payments plus interest on the declining balance.
Wagonwheel555 said:
So your PCP was on a used car then?
It must be if it was a 3 year contract and the car is six years old?
At six years old, you might be better off with a bank loan to just buy the car instead of keep extending the PCP.
Thanks...Yes PCP was n 1 3 year old car. I wouldn't get another PCP on the car - although I would look at the option of extending the current one if the monthlies were fair. Thought about buying it - they want £35,500. It must be if it was a 3 year contract and the car is six years old?
At six years old, you might be better off with a bank loan to just buy the car instead of keep extending the PCP.
BensZ4MC said:
Thanks...Yes PCP was n 1 3 year old car. I wouldn't get another PCP on the car - although I would look at the option of extending the current one if the monthlies were fair. Thought about buying it - they want £35,500.
Crikey how much was it new?Guessing around £60-65k?
Looks like the difference in value between a 2014 RRS AB and a 2015 is about £4500, or a depreciation rate of £375 a month. So given as Santander won't be doing it for nothing, I reckon they'll quote the same £420 a month to extend it for a further year, or perhaps £399 if they're feeling generous.
Thanks for the math... I think I would go for it at that price!
samoht said:
Looks like the difference in value between a 2014 RRS AB and a 2015 is about £4500, or a depreciation rate of £375 a month. So given as Santander won't be doing it for nothing, I reckon they'll quote the same £420 a month to extend it for a further year, or perhaps £399 if they're feeling generous.
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