How to get out of PCP payments

[smckeown]

I took out a PCP on a BMW about 13 months ago. Now as part of a divorce settlement she no longer wants the car. I understand what after i've paid 50% of the loan I can hand the keys back, but I assume I haven't reached that figure yet; I will check later today.

Assuming i've paid less than 50% ,what are my other options?

1 - Let the car sit on the drive until I reach 50%
2 - Webuyanycar are offering 2k less than settlement figure
3 - Phone the dealer to see if they will offer more - unlikely to be significantly more
4 - Take out a personal loan to act as a bridging loan - getting finance is hard for me at the moment as ive just gone self employed

Any other options?

At the moment I can afford the monthly repayments no problem

Sean

Edited by smckeown on Sunday 9th May 09:44

[rsv gone!]

smckeown said:

I took out a PCP on a BMW about 13 months ago. Now as part of a divorce settlement she no longer wants the car. I understand what after i've paid 50% of the loan I can hand the keys back, but I assume I haven't reached that figure yet; I will check later today.

Assuming i've paid less than 50% ,what are my other options?

1 - Let the car sit on the drive until I reach 50%
2 - Webuyanycar are offering 2k less than settlement figure
3 - Phone the dealer to see if they will offer more - unlikely to be significantly more

Any other options?

At the moment I can afford the monthly repayments no problem

Sean

It isn't a loan. I don't think you can use the 50% rule.


Edited to add: Looks like you can

http://www.justanswer.com/questions/32wue-hi-can-y...

Edited by rsv gone! on Sunday 9th May 09:42

[Hitch78]

Sell the car private and get the 2k that we buy any car are stuffing you for.

[smckeown]

I wasn't aware you could sell a car privately with finance still outstanding. I wouldn't buy such a car

[Bill]

smckeown said:

I wasn't aware you could sell a car privately with finance still outstanding. I wouldn't buy such a car

If you can use the money from WBAC to pay off the loan, why not from a private sale. If you're upfront about it there shouldn't be a problem.

[edo]

smckeown said:

I wasn't aware you could sell a car privately with finance still outstanding. I wouldn't buy such a car

Common occurrence. Buyer pays finance company, and any difference to the seller.

[Aeroresh]

Its quite easy to sell privately with outstanding finance as long as the car is sold for more than the outstanding finance settlement figure.

The buyer pays the finance company direct, and you the balance

If you owe more than you get in the sale, you'll have to make up any shortfall before the buyer pays their bit.

Edited by Aeroresh on Sunday 9th May 14:19

[davidjpowell]

The 50% rule works differently I think. It's not 50% of the payments (ie the difference between what you paid and the final value), it's 50% of the total amount borrowed (ie Total price for the car - less your deposit).

So 50% is rarely reached much before the end of the repayment period.

[cheadle hulme]

davidjpowell said:

The 50% rule works differently I think. It's not 50% of the payments (ie the difference between what you paid and the final value), it's 50% of the total amount borrowed (ie Total price for the car - less your deposit).

So 50% is rarely reached much before the end of the repayment period.

Its 50% of the outstanding finance.

Total finance = (Number of months x Monthly payment) + Agreed Ballon.

If you have maintenance included, then deduct this from the monthly payment.

[richcorsavxr]

cheadle hulme said:

davidjpowell said:

The 50% rule works differently I think. It's not 50% of the payments (ie the difference between what you paid and the final value), it's 50% of the total amount borrowed (ie Total price for the car - less your deposit).

So 50% is rarely reached much before the end of the repayment period.

Its 50% of the outstanding finance.

Total finance = (Number of months x Monthly payment) + Agreed Ballon.

If you have maintenance included, then deduct this from the monthly payment.

deduct interest aswell.....after 10months of owning my car i wanted to know how much was left on finace, it was suprisingly little, as some of the interest was deducted

[gizlaroc]

Buying a car privately with finance on it is actually far safer than buying with cash.
Think about it for a second.

Say you buy a car for £15000 and there is £12000 of finance on it, you would get the settlement figure from the finance house, get a draft made out to them and then pay the seller the balance.
Or, if it is the other way round you get a draft made out for £15000 and the seller gives you £12000.

Now, there is absolutely no way a finance house would be in on any scam, you also know that they would have done thorough searches and won't lend on a car that has been a write off at some point.

I am much happier to give a finance house £30000 than I am just giving it to the seller.



Get the car sold privately and pay it off. Job done.

However, do call round all the main dealers and ask for their groups buyers.
I had my 123d M-Sport auto up for £17950 privately, was getting low ball offers so called 3 dealers, two BMW and one indy, got outright trade bids to buy for £18200, £18200 and £1800 from the indy.

[smckeown]

thanks for all the advice, that's great advice cheers that will hopefully help me off-load this car.

If anyone's interested in a 2009 BMW 118d Msport 5 door in black at rock bottom price, for a quick sale, then let me know

cheers
sean