early settlement best option ?

Trumpsz

Registered User
hi just after some advice from people who may have been in a similar situation i am currently 2 years into my pcp agreement and have recently contacted audi finance in regards with voluntarily terminating my agreement and have found out that i am £5200 away from hitting the half way mark this works out to about 14 more monthly payments which is not ideal ive also gone over my annual mileage estimate by 7000 at this current time and will most likely keep increasing as my travelling circumstances have changed.

i checked the quote for the early settlement price of the car which is 21300 with an interest saving of 2900 which brings the price down to 18400 if im correct ( i do not completely understand how the interest saving part works out however im guessing this is something to do with the finance that ive paid so far and entitled back ???)

my cars valuation if i was to sell privately works out to be 18600 this is valued from autotrader im not sure how accurate that is however id ideally want to sell the car to a company or business to avoid the hassle of selling privately, autotrader are willing to buy my car from me in the state it is in for 17150

what would you recommend ?

Thanks
 

S32B

Registered User
If you pay it off today it will cost you £21,300 if you run the full course of the pcp and then pay it off it will cost you (total) that £21,300 plus interest of £2,900. Basically the £2,900 interest saved is the number of months you have left building interest that you wouldn't pay if you paid it off today.

If you sold it for £17,150 you would have to put another £4,150 to it, to pay it off.
 

adey12

Registered User
wizzle.com list it here and dealers will bid for it . i sold my last car there last november the dealer buying it settled the finance and the offer i got was 2k over there valuation .
 

Trumpsz

Registered User
wizzle.com list it here and dealers will bid for it . i sold my last car there last november the dealer buying it settled the finance and the offer i got was 2k over there valuation .
thanks ive placed an add on the site hopefully receive some interest not sure if i should mention in the comments that the car has had an engine change carried out by a audi main dealer would this be more appealing to potential buyers ?
 

Trumpsz

Registered User
If you pay it off today it will cost you £21,300 if you run the full course of the pcp and then pay it off it will cost you (total) that £21,300 plus interest of £2,900. Basically the £2,900 interest saved is the number of months you have left building interest that you wouldn't pay if you paid it off today.

If you sold it for £17,150 you would ha
Screenshot 2021-03-18 at 19.59.07.png
so i will be paying the outstanding balance instead of the total settlement amount ?
sorry just a bit confused as by the wording on the site i thought it would be the smaller sum
 

Adam14

Registered User
View attachment 233517 so i will be paying the outstanding balance instead of the total settlement amount ?
sorry just a bit confused as by the wording on the site i thought it would be the smaller sum
You'd pay the £18k figure mate. The top one is how much you'd pay if you kept the car to the end of the PCP and paid the final value.

Bottom one is how much it'll cost to clear the finance/own the car.

Sent from my HD1913 using Tapatalk
 

S32B

Registered User
View attachment 233517 so i will be paying the outstanding balance instead of the total settlement amount ?
sorry just a bit confused as by the wording on the site i thought it would be the smaller sum
With that info, as Adam said the £18,412

Just the initial wording of "21300 with an interest saving of 2900" made it sound like the £21,300 was after the saving.
 
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