Buying a new to me car advice

[Toonsoldier91]

Evening everyone. I’ve been out looking at some new cars today and come across a lovely 18 plate golf gti for 25 500

I was having a chat with the salesman about possible pcp etc and he worked out the future value after 3 years would be around the 15-16k mark. But I currently have my current car with 3 years left to pay on the loan I bought it with but I’ve been offered 10400 for mine witch is pritty much the difference between the cash price and what it’ll be worth it 3 years.

So my question is could I trade my car in, pay cash between the difference. Then either hand the car back after the 3 years or pay the final payment ?? Or would this have to be a new finance application ??

Hopefully someone more clued up then what I am can help me

Thanks

 

[Adam14]

Your post is a tad confusing (or maybe I'm being thick). Regardless of what you do, with PCP at the end of the term you can hand the car back or pay the balloon payment. You can also voluntarily terminate once you have paid over 50% of cars value.

In regards to your current car you can trade it in and use the funds to clear your loan. If that's what you want to do. You'd save interest as well by early settlement of your loan .

Sent from my SM-G965F using Tapatalk

 

[Toonsoldier91]

Your post is a tad confusing (or maybe I'm being thick). Regardless of what you do, with PCP at the end of the term you can hand the car back or pay the balloon payment. You can also voluntarily terminate once you have paid over 50% of cars value.

In regards to your current car you can trade it in and use the funds to clear your loan. If that's what you want to do. You'd save interest as well by early settlement of your loan .

Sent from my SM-G965F using Tapatalk

Hi thanks for that. What I was thinking is instead of applying for pcp I could just use the funds from my car and pay the dealer the lump sum between what the car price is marked as and what it’ll be worth 3 years down the line. I just don’t know if that’s at all possible with out actually applying for pcp

Only reason I’d like to keep my current loan is because the apr was pritty good and is less then what the dealers used car pcp rate is ( 8% v 11% )

 

[Adam14]

Hi thanks for that. What I was thinking is instead of applying for pcp I could just use the funds from my car and pay the dealer the lump sum between what the car price is marked as and what it’ll be worth 3 years down the line. I just don’t know if that’s at all possible with out actually applying for pcp

Only reason I’d like to keep my current loan is because the apr was pritty good and is less then what the dealers used car pcp rate is ( 8% v 11% )

No you can't just pay the difference between the car list price and what it's worth in 3 years. You'd need some sort of finance on the final value. You could sell the car and use that, but the final amount would need to be covered by a loan.

Sent from my SM-G965F using Tapatalk

 

[Toonsoldier91]

No you can't just pay the difference between the car list price and what it's worth in 3 years. You'd need some sort of finance on the final value. You could sell the car and use that, but the final amount would need to be covered by a loan.

Sent from my SM-G965F using Tapatalk

Yeah I’m aware I would still need to fund the balloon payment but I’ve no interest at the moment in keeping it longer than 3 years at the moment so I would simply hand the car back

 

[Adam14]

Yeah I’m aware I would still need to fund the balloon payment but I’ve no interest at the moment in keeping it longer than 3 years at the moment so I would simply hand the car back

Maybe I've misunderstood. You could sell the car and get the car on PCP and then make an early payment after 14 days. But then that would still force you to then pay the balloon payment. Really not sure what it is you're trying to do.

Sent from my SM-G965F using Tapatalk

 

[Toonsoldier91]

Maybe I've misunderstood. You could sell the car and get the car on PCP and then make an early payment after 14 days. But then that would still force you to then pay the balloon payment. Really not sure what it is you're trying to do.

Sent from my SM-G965F using Tapatalk

Well I basicly don’t want to apply for another finance package that’s gonna cost more then the one I currently have. So I ideally would like to sell my car and keep the money and pay the difference between list price and future price of the car in cash. Then hand car back in 3 years like you would do on pcp

So if I was to just get a pcp then pay it off after 14 days I’d then have to pay the final balloon aswell ?? If that’s so then my idea defiantly won’t work

 

[Ron240]

I think you want to pay all the monthly payments in advance in one lump sum, then nothing more to pay till the end of the term when the balloon payment is due.....is this correct?
I'm sure this is an option on pcp.....I've definifely read about it.

 

[Toonsoldier91]

I think you want to pay all the monthly payments in advance in one lump sum, then nothing more to pay till the end of the term when the balloon payment is due.....is this correct?
I'm sure this is an option on pcp.....I've definifely read about it.

Yes that is correct.

Told yous I know nothing about finance really lol

 

[RichardT]

Just remember the bottom line is that pcp is just a different way of financing a loan. At the start you have to finance the complete cost of the car. Nobody else is going to pay that. And you pay interest on the total amount (including the balloon payment).

 

[Pablosammy]

I've overpaid my PCP in advance right up to the balloon payment to save some interest, but I'm still paying £25 a month to service the interest on the balloon itself. Some manufacturers do a 50% deposit with 0% finance, effectively meaning its PCP with no monthlies, but most don't.

Hope that makes sense!