21 months in to a 36 month PCP and thinking changing....

[Neily03]

I'm currently 21 months into a 36 month on my vRS and i'm tempted by the new one although i'm yet to step into a dealers to enquire (though I did have a sit in one at Goodwood FoS). Just wondering if you can actually change the car part way through a PCP and take on a new one on PCP and what are the pro's and cons?

 

Cheers.

 

[meta55b]

Yes you can change, your far enough through the contract. The down side, you will loose money.

[Leon-y-k]

When seeing our local dealer the other day, you can change when ever you like. They just settle the payment with the car, and if you owe a bit more you just top the rest up and move on to the next. It'll be a good time to change with the 0% because if you decide to change early again next time you will have less to owe maybe...all depends on how much they value your car though. 

[Rob-vrs21]

Im in 13 months in to my mk2 octavia vrs and have ordered a mk3 vrs yesterday, i had a nice amount of equity in my car to put towards the new one too. All the dealer does is pay your settlement figure

[Neily03]

Sweet, cheers guys.

[Neily03]

Just another question, how do they work out how much equity is in the car, is what it's worth minus what's left to pay?

[Rob-vrs21]

Yes, so if you have £10000 left to pay on your finance and the car is worth £14,000 you have £4000 towards new one.

[Neily03]

Great, cheers.

[VRS2012Blue]

Just another question, how do they work out how much equity is in the car, is what it's worth minus what's left to pay?

Yes, so if you have £10000 left to pay on your finance and the car is worth £14,000 you have £4000 towards new one.

When you say whatever is left on the car, is that with or without the final payment? In other words, just the amount of your total remaining monthly repayments is what you have to pay off?

Paul.

[Rob-vrs21]

When you say whatever is left on the car, is that with or without the final payment? In other words, just the amount of your total remaining monthly repayments is what you have to pay off?

Paul.

PCP is the exact same as normal finance, to when you take out the pcp, you borrow the final payment and monthly payments in total. So when you ring for you settlement figure it includes the rest of your monthly payments and your final payment.

Hope this helps.

[VRS2012Blue]

PCP is the exact same as normal finance, to when you take out the pcp, you borrow the final payment and monthly payments in total. So when you ring for you settlement figure it includes the rest of your monthly payments and your final payment.

Hope this helps.

Nice one, cheers Rob.

[Aspman]

[boring sensible answer]

 

First run a of a new model will often have issues plus you won't get much of a deal if demand is high for the new model.

 

Might be worth finishing your deal before changing.

[biggy7]

daft question sorry...

 

so if you car is worth more in say month 12 of ownership of 3 year pcp deal, wouldn't this be a best time to px in for a new model?

 

why would one wait till end of 3 years and wait for car to be worth less?

[Rob-vrs21]

Thats what iv done, and it also saves me £850 in interest repayments too.

[Zillio]

Well you are not really going to save money here ultimately, as you are buying another car and will again be funding the highest point of depreciation. the only time this is not true is when the car is in such short supply that the residuals remain extremely strong in the nearly new market.

[cotswoldlad]

I swopped my yeti after just 18mths had 6k of equity, repayments stayed about the same plus got 3 years free servicing on the new L&K and a car to my exact spec (previous was a 6mth old demo)

[MattyD]

daft question sorry...

so if you car is worth more in say month 12 of ownership of 3 year pcp deal, wouldn't this be a best time to px in for a new model?

why would one wait till end of 3 years and wait for car to be worth less?

Because you will owe more money to the finance company in month 12 than month 36. So you won't have as much equity to be able to change.

[Rob-vrs21]

It is nearly relative as the value of the car is higher though, i know car does depreciate faster than paying payments