jimmy boo Posted February 1, 2019 Share Posted February 1, 2019 11 minutes ago, welshbairn said: Good on him anyway. I just buy as reliable cars as I can find about 3 years old with low mileage at a lowish price and take them to the scrappy when the MOT gets too expensive to get through, so have no idea either. Good on you. You must keep your car for about 15 years? Mine is probably worth about half after 3 years!! Link to comment Share on other sites More sharing options...
supermik Posted February 1, 2019 Share Posted February 1, 2019 Got a new (to me) motor last Tuesday. Was going to just buy it outright but the garage offered me it on a PCP, which I have never had before. As the payments were not too bad just went for it. Link to comment Share on other sites More sharing options...
Dindeleux Posted February 1, 2019 Author Share Posted February 1, 2019 I do about 20k a year mileage so I’m always going to pay a bit more than average.Thanks for the explanations it makes sense.Thread closed. Link to comment Share on other sites More sharing options...
PB1994 Posted February 1, 2019 Share Posted February 1, 2019 So does the new dealer pay off his contract with the old one? Yes that’s how it works. The garage you are buying your new car from (on PCP again or whatever) are essentially buying the car from you. So they will pay what they think it’s worth. The only difference is that the money goes to the finance company that you took the original deal out with. If they garage value the car less that you owe you either stump up the cash or wait until the amount you owe is the same as the value of the car. If the car is still worth more than you owe you that just gets shoved as a deposit on the new car you are going to buy. Edit: the car garages don’t give a f**k as they get the full value of the car from the finance company as soon as you buy it. Link to comment Share on other sites More sharing options...
Cerberus Posted February 1, 2019 Share Posted February 1, 2019 4 hours ago, Dindeleux said: As always I cannot make an OP with any kind of detail. Anyway my current car I have on a PCP deal. The 3 year term runs out in August but I'm wondering if anyone knows if I can go get a new car on PCP just now and (hopefully not) if I'm going to have to make any kind of lump sum payment. Can I just walk into any showroom and explain my situation and, to get the sale, they will pay up the remainder of my current deal and then move me onto a new one? Or no? Don't be trapped by dogma - which is living with the results of other people's thinking. Have the courage to follow your heart and intuition. Link to comment Share on other sites More sharing options...
DumbartonBud Posted February 1, 2019 Share Posted February 1, 2019 If you are in negative equity some dealers will do a deal for you but effectively you are rolling up your debt into your new car, so that in 3/4 years time when you go to change you are more than likely to be in negative equity again and end up rolling that up into your new deal, do that and you find you are still effectively paying for a car you haven’t sat in for 5 or 6 years. Link to comment Share on other sites More sharing options...
ecto Posted February 2, 2019 Share Posted February 2, 2019 Did not do it myself, but I know many who have, all seem to be happy with the arrangement Link to comment Share on other sites More sharing options...
steelmen Posted February 4, 2019 Share Posted February 4, 2019 If you are in negative equity some dealers will do a deal for you but effectively you are rolling up your debt into your new car, so that in 3/4 years time when you go to change you are more than likely to be in negative equity again and end up rolling that up into your new deal, do that and you find you are still effectively paying for a car you haven’t sat in for 5 or 6 years. We had that a few cars back, the payments were huge. But the Peter vardy told us to stop being stupid and hand the car back to the finance company. Turns out as long as you have had it more than half the term of the finance, we had to 3 of the 5 years you can phone the finance and they will collect it. They did warn us it could effect your credit rating but there was nothing in ours.Got the same car again for just over half what we were paying before. Link to comment Share on other sites More sharing options...
DumbartonBud Posted February 4, 2019 Share Posted February 4, 2019 9 minutes ago, steelmen said: We had that a few cars back, the payments were huge. But the Peter vardy told us to stop being stupid and hand the car back to the finance company. Turns out as long as you have had it more than half the term of the finance, we had to 3 of the 5 years you can phone the finance and they will collect it. They did warn us it could effect your credit rating but there was nothing in ours. Got the same car again for just over half what we were paying before. The consumer credit act allows you to hand the car back without penalty (except fair wear and tear) once half the amount borrowed has been paid. With a normal car loan that is usually just over half way through the agreement but with a PCP the big balloon payment at the end of the agreement counts toward the calculation of the half payment. Depending on the length of the deal you may never get to the 50% mark or more typically on a 3 or 4 year deal with a minimal deposit it can be in the last few months before you get to that stage. There are a number of factors all at play within this such as size of deposit, the guaranteed future value (balloon payment), the interest rate and the length of the deal. Link to comment Share on other sites More sharing options...
scottsdad Posted February 5, 2019 Share Posted February 5, 2019 My wife bought a car from Arnold Clark in October. We had to wait for a few days as they were busy sorting out the finance from the last owner before we could proceed. So, in short, to answer your question, what i really think is....maybe. Link to comment Share on other sites More sharing options...
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