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Selling car on pcp

Timi8888 Nov 2, 2018

  1. Timi8888

    Timi8888 Registered User

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    Hi all.

    I just wondered if anyone has sold car while still on a pcp deal?

    I am one year in and I am given a settlement figure. I’m told Ican sell the car privately or can wait till March at hand back as I will be 50% of way through my contract.
     
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  3. Flowrider99

    Flowrider99 Registered User

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    I'm sure a few of us have, what's your question.
     
  4. jassyo06

    jassyo06 T-Cut King !

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    Twice
     
  5. AlS3BE

    AlS3BE Registered User

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    Think the official way is you have to settle the loan first then you legally own the car. After that you can do what you want.
    Last time I tried it was difficult getting people to part with their money when the car wasn’t Hpi clear.
    You also have to be careful as March might be you half way through the period, ie 2 out of 4 years, but you can only hand it back if half the car has been paid for. So on a £10k car plus £1k interest and charges, £11k total, minus your deposit and monthly payments you have to reach a balance of £5500 before you can hand the car back. It might not be the half way point in time in your 4 year agreement.
    Also the mileage is pro rata so if it’s 10k a year and you are at 2 years the car can’t have more than 20k on it otherwise they will charge by the mile. Think it’s 9p + vat at the moment.
     
  6. -Ju-

    -Ju- Well-Known Member VCDS Map User

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    I've never done what your asking regards handing the car back but afaik the 50% is not halfway through the term, but when you have paid off 50% of the original contract obligation. That means 50% of the purchase price plus interest and all associated fees. This in reality can be a lot nearer the end of the pcp term than halfway through.
    I originally bought mine on a pcp with the ridiculously high apr that dealers charge and then swapped it to a low rate bank loan.
    The car would be much easier to sell without finance attached to it just as long as you have equity in the car in the first place.
     
  7. RichardT

    RichardT Registered User

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    There was a long thread on here a couple of weeks ago - have a search
     
  8. terminator x

    terminator x Registered User

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    Just let everyone know it is PCP at the very top of the advert then confirm that the balance will be paid off as part of the sale, no need to get in to any detail as you will be swamped with timewasters as usual! That way no one can say they didn't know when responding.

    As others have said though imho you will still have a long way to go if only 1 year in to it ...

    TX.
     
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  9. -Ju-

    -Ju- Well-Known Member VCDS Map User

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    I think you would narrow your target audience though as a lot of people would be put of by the arrangement, me included
     
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  10. AlS3BE

    AlS3BE Registered User

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    The problem is the person needs to trust you will pay it off with their money after you handing it over to them. When you are talking about a £20k+ car no one is gonna trust you. It’s different if you have the money to pay it off first then sell otherwise the target audience is mainly dealers and we buy any cr@p dot com.
    Another thing about the half way mark just to put it in perspective. My wife car was on a 4 year pcp and 3 and half year on she is now at the half way mark.
    Your average car loses roughly 50% value in 3 years so your 3 year pcp half way point is pretty much at the 3 year mark. That’s how they base the pcp guaranteed future value.
     
  11. jassyo06

    jassyo06 T-Cut King !

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    The said person/buyer can pay Audi finance direct all you need is email/phone confirmation Simples
     
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  13. jassyo06

    jassyo06 T-Cut King !

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    Again you can take a car over a 2/3 year pcp contract not everyone does 4 years
     
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  14. S32B

    S32B Registered User

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    Yes sold it to a sports car specialist without any problems.

    It has to be 50% of the total amount payable, not 50% through the PCP term to be able to hand it back and walk away.
     
  15. Jcbmally

    Jcbmally Started with nothing & still have most of it left.

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    Like others have said you can sell the car as normal, no special circumstances required.
    I sold a Fireblade a few years ago with finance still on it (£8300), the buyer (and myself) were in contact with the finance company and it got settled there and then (as @jassyo06 stated), no issues.
    If the settlement figure is less than what the car is worth then go for it and sell it privately, if it isn't then trade it or hand it back when you can.
     
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  16. Flowrider99

    Flowrider99 Registered User

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    The GFV is also included in the 50% calculation.
     
  17. jassyo06

    jassyo06 T-Cut King !

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    Was'nt that much a specialist when buying a 3 door manual......lol
     
  18. HertS3

    HertS3 Registered User

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    I bought mine off a colleague that was on PCP, our deal was that I pay off the finance on her behalf. In theory if you're in it to make money as well as getting rid of the car, you get the buyer to pay off the finance and then pay any balance to you
     
    NevMan likes this.
  19. Timi8888

    Timi8888 Registered User

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    Is it easier to sell privately or to a sports car specialist?

    I reckon if I go private on autotrader someone will rob it off me. Heard too many stories haha.

    So can the buyer pay off Audi finance directly the settlement figure?
     
    NevMan likes this.
  20. Flowrider99

    Flowrider99 Registered User

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    More likely the buyer pays the finance off and the seller has to pay the buyer to keep the car because the finance is more than the car is worth.
     
  21. Timi8888

    Timi8888 Registered User

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    In my case I should be £1500 owed by new buyer, but I feel like he is offering too low compared to market value... but at same time will having to settle with Audi finance put off a lot of private buyers?
     
  22. Flowrider99

    Flowrider99 Registered User

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    You cannot sell the car before the finance is paid off, until then you don't own the car the finance company does.
     
  23. Timi8888

    Timi8888 Registered User

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    It is a 67 plate hatchback. Mint body work and interior. Only one stone chip. Under 5000 miles. S tronic. Got options of B&O. Super sports seats. Hill hold and folding mirrors. Tinted windows too
     
  24. Timi8888

    Timi8888 Registered User

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    I don’t have the money to settle it atm. But can get that money from the buyer. Will I have to pay it then?
     
  25. HertS3

    HertS3 Registered User

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    I had a Q5 on 4 year PCP which I sold through a dealer on sale or return just after 3 years into the deal (once I was more than 50% paid up on the loan), the dealer handled everything, Audi Finance paid off by the dealer/buyer then some money paid to me (haggled down more than I was originally offered but at least I made some profit) and the rest went to the dealer.

    I tried selling privately for a while but got some ridiculous offers for cash (of no interest to someone where over 80% of the purchase price goes to finance company!) etc and gave up in the end.

    If you want a decent amount for your car (£15k+ I would say) you're best going through a dealer who can offer finance, part exchange etc which you can't do as a private seller
     
    desi112 likes this.
  26. terminator x

    terminator x Registered User

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    True, it is what it is though so best be upfront.

    TX.

    Sent from my BBB100-2 using Tapatalk
     
  27. terminator x

    terminator x Registered User

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    Get them to pay you then settle finance whilst they are still there eg if you have online banking they can see it all happening.

    TX.

    Sent from my BBB100-2 using Tapatalk
     
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  28. NevMan

    NevMan Well known member

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    Agree, have done this a few times. Have settlement letter, ring them up with buyer for their piece of mind to confirm. Go to bank and pay money to settle finance and you keep balance. I have done this twice before too.
     
    Jcbmally likes this.
  29. NevMan

    NevMan Well known member

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    Yes
     
  30. NevMan

    NevMan Well known member

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    Yep, spot on, it isn’t rocket science
     
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  31. AlS3BE

    AlS3BE Registered User

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    The OP looks like he’s on a 3 year PCP. As I said a car loses about 50% of its value so in the pcp contract you have to pay half of the total balance.
    Your pcp is calculated so you pay upto the GFV so if the cars is more or less gonna be worth 50% of its original value at the end of the pcp then by default your half way point will be around/close to the 3 years. Even with a big deposit all that does is lower the monthly payments so the gap in between the half way point is gonna be closer in monetary terms.
    On a 2 year term it’s gonna be worse. You will be quite far away from paying off half the balance to terminate your contract and hand the car back.
    Terminating/handing car back is taking advantage of the consumer credit act which means you can terminate the agreement and hand back the goods once you pay half the value. I think the idiots at Audi is smart enough to figure that out and fix these pcp contracts to suit them. Also the condition and mileage has to be spot on otherwise they will charge you.
     
    KenL likes this.
  32. Timi8888

    Timi8888 Registered User

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    TBF handing car back is out of the question. Just want to know what was the best option for people selling, how they will get the most money for their car.
     
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  34. AlS3BE

    AlS3BE Registered User

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    I would use that as a last resort personally.
    Your best bet is sell it privately for most money but it might take a while to find that person and having to deal with tyre kickers.
    Have you tried the webuyanycr@p type companies.
    There’s quite a few. I found last time that arny Clark and Evans halshaw gave me more money than trading it in.
     
  35. Timi8888

    Timi8888 Registered User

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    Evans Halshaw offered me 3k less than WBAC, who are offering 2.8k less than what a private buyer is offering me... but I am yet to check what offer I could get from performance specialists, so I reckon this should be my next step...
     
  36. AlS3BE

    AlS3BE Registered User

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    If you have found the private buyer then explain to them that the loan needs paid off and the difference goes to you. Maybe give them a couple hundred quid discount for their troubles to sweeten the deal.
     
  37. NevMan

    NevMan Well known member

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    Performance specialist I doubt will offer more than private. Process should be:

    1. Agree price
    2. Have latest settlement figure from Audi finance in paper.
    3. On the day of pickup call up AF with buyer and confirm settlement figure on that day that will probably differ from printed version you have.
    4. Go to online banking but for me I went to a branch of buyers bank in the past.
    5. Buyer does two transfers, one to AF to settle finance and 2nd to your account for balance.
    6. Sign over v5 and hand over keys.

    Simples
     
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  38. AlS3BE

    AlS3BE Registered User

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    As part of step 6 I would put together some paperwork to say that you are transferring ownership to new owner as well as v5 only states keeper not ownership. You can download contracts of sale on the net. This should make the private buyer feel more secure/confident that they aren’t getting taken for a ride.
     
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  39. wab172uk

    wab172uk Now in an X3 M40i

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    If you're selling privately, you'll have to pay the car off first. I'd never trust the seller to pay off the finance with my money. So easy to get scammed and lose the car you've just bought in good faith.

    If you sell it to a dealer or performance specialist, then they'd pay the balance off directly. Suppose a private buyer could do that too, but personally, I wouldn't.

    As others have said, I'd be surprised if after year one you were 50% in on a PCP deal.
     
  40. S32B

    S32B Registered User

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    Lol either way he gave me a lot more than Audi wanted to :)
     
  41. Flowrider99

    Flowrider99 Registered User

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    The moral of this tale is don't buy a car on PCP if you might want to change cars early.
     
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  42. S32B

    S32B Registered User

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    You can still do it, I did it just over 2.5 years into a 4 year PCP and made a few quid when I paid off/then sold the S3. I'd only put a £1,000 deposit down at the start as well :)
     
    S15THM likes this.
  43. Timi8888

    Timi8888 Registered User

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    Situations change in life my friend :icon thumright:
     
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