Car finance Qn
Discussion
Need to ask PH collective a question.
Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
JVaughan said:
Need to ask PH collective a question.
Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
She can hand it back, no questions asked, once she is halfway through her term.Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
If she trades it in on another one she will more than likely end up paying more for a lesser car.
Dunno. Have told her to get the figures infront of her and see what the car is worth, the outstanding finance (if she were to buy outright) and weigh up her options.
A quick search though, and knowing what she pays a month would suggest a deficit of about £2k on book prices.
Anyone want a Low Mileage Golf GTI Sport 2 litre Diesel, 18 months old ?
A quick search though, and knowing what she pays a month would suggest a deficit of about £2k on book prices.
Anyone want a Low Mileage Golf GTI Sport 2 litre Diesel, 18 months old ?
Mike400 said:
JVaughan said:
Need to ask PH collective a question.
Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
She can hand it back, no questions asked, once she is halfway through her term.Chatting to a colleague at work, she was saying that she has a car on a PCP and was looking to finish work to become a full time mum. She is 1/3 way through the PCP but when she gives up work / reduces her hours, she will no longer beable to afford to pay the finance. She was just going to default on the payments and let them re-posses the car, but I have been explaining that has financial ramifications.
She has also considered downgrading the car and looking for a dealer that will accept the Part-ex and just "add" the outstanding difference between the trade-in value of the car and the amount to buy the car onto a smaller cheaper car that is in her budget.
I suggested Torching the car but that isn't an option apparently !!
Anyone know what her options would be ?
If she trades it in on another one she will more than likely end up paying more for a lesser car.
paoloh said:
NO she can't. It's half way thru the debt. Cost of car, interest etc etc and with a PCP, that will be never. With a PCP unless you put down a huge deposit, you can only really get out of them at the end.
That's not quite true, I could have handed my old clio back at any point over 2 years as I'd paid over 50% of the total finance (it was a PCP), depends on the agreement and how it's structured though.AngryS3Owner said:
paoloh said:
NO she can't. It's half way thru the debt. Cost of car, interest etc etc and with a PCP, that will be never. With a PCP unless you put down a huge deposit, you can only really get out of them at the end.
That's not quite true, I could have handed my old clio back at any point over 2 years as I'd paid over 50% of the total finance (it was a PCP), depends on the agreement and how it's structured though.paoloh said:
AngryS3Owner said:
paoloh said:
NO she can't. It's half way thru the debt. Cost of car, interest etc etc and with a PCP, that will be never. With a PCP unless you put down a huge deposit, you can only really get out of them at the end.
That's not quite true, I could have handed my old clio back at any point over 2 years as I'd paid over 50% of the total finance (it was a PCP), depends on the agreement and how it's structured though.AngryS3Owner said:
paoloh said:
AngryS3Owner said:
paoloh said:
NO she can't. It's half way thru the debt. Cost of car, interest etc etc and with a PCP, that will be never. With a PCP unless you put down a huge deposit, you can only really get out of them at the end.
That's not quite true, I could have handed my old clio back at any point over 2 years as I'd paid over 50% of the total finance (it was a PCP), depends on the agreement and how it's structured though.JVaughan said:
Nick.w said:
Shes amazing.
Default on the car, get a new loan and buy a bigger better car.
If you cant buy the whole cake, you cant eat it all.
Dont be a Knob.Default on the car, get a new loan and buy a bigger better car.
If you cant buy the whole cake, you cant eat it all.
She cannot afford to continue to pay the current car. she wants a smaller, cheaper car to run
When she took out the agreement, im guessing five years, she agreed she would keep paying it??
JVaughan said:
Dunno. Have told her to get the figures infront of her and see what the car is worth, the outstanding finance (if she were to buy outright) and weigh up her options.
A quick search though, and knowing what she pays a month would suggest a deficit of about £2k on book prices.
Anyone want a Low Mileage Golf GTI Sport 2 litre Diesel, 18 months old ?
How much is the monthly lease? What is the milage restrictions?A quick search though, and knowing what she pays a month would suggest a deficit of about £2k on book prices.
Anyone want a Low Mileage Golf GTI Sport 2 litre Diesel, 18 months old ?
There is a website where you can buy & sell leases 2nd hand. Sure someone will post a link for it but cannot recall it for the life of me.
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