Has any one returned there car on finance to the local dealer at all? I'm looking at the real possabilty of doing that at the moment. 
I had a towbar fitted by the local skoda dealer in northampton. Would they be able to remove it at all and would there be any costs involved in it's removal along with the electrics?

On the subject of tow bars would the tow bar of the octivia fit another model ie: The skoda superb?

What is the agreement type? PCP, PCH, HP?

 

Are you wanting to use the voluntary termination option, or sell it back to them?

I’m pretty certain the removal of the tow bar will involve costs, dealers rarely work for free..

 

I’d also be confident that a bar used on an Octavia will not fit on a Superb.

 

Get a price for your car online, it maybe worth more than is owing on it, mine is worth £2k more than settlement figure and it's only 18months old. Cheers

Your towbar will fit some Audi's and Seats as well as the Octavia.

Cheers guys. 
the car is on pcp fiance. 

If your not using any equity to purchase another Skoda, it’s easy enough to get a settlement figure from Skoda/VW finance.

You will get a better price from We buy any car or Motorway  etc and they will clear your finance and forward any excess fund to your bank account.

 

Edited 15 August, 20214 yr by Kenny R

My 68 plate VRS has about £4.5k equity in it according to we buy any car so well

worth getting a settlement figure from Skoda Finance and looking into selling privately

Used car prices are at an all time high so this could be a good time to get out of finance. 

 

As has been mentioned, get a settlement figure and one from WBAC. 

 

Do you need to change to a different vehicle or just dispose of this one? 

You can under a PCP invoke a voluntary termination or VT if you have paid off more than 50% of the finance. I've done it, but bear in mind that they go over your car with a microscope to charge back defects and damage.

If you do return your car you don't take it to the local dealer. You contact whoever provides the finance and they sort out the arrangements. Usually they are collected and taken to auction.

I would advise getting your car fully valeted before handing back and should buff out any minor scratches etc. There is an element of wear and tear allowance but you may be charged for scuffed alloys etc.

It might be better to sell to a garage if the value of the car is higher than the finance figure. 

Hi, This is really a general question from a potential PCP newbie.  Before I sign the paperwork can any one explain how the balloon payment or residual value comes into play after the agreed term of the finance deal. I get I can hand the car back, buy t or start again but the ballon payment Ive been quoted from Skoda suggests a depreciation of about 60% on the purchase price. Is this standard???. Am I correct in thinking this is the minimum agreed value and the price I get at the end of the term may be higher?

Thanks

 

3 minutes ago, nor said:

Hi, This is really a general question from a potential PCP newbie.  Before I sign the paperwork can any one explain how the balloon payment or residual value comes into play after the agreed term of the finance deal. I get I can hand the car back, buy t or start again but the ballon payment Ive been quoted from Skoda suggests a depreciation of about 60% on the purchase price. Is this standard???. Am I correct in thinking this is the minimum agreed value and the price I get at the end of the term may be higher?

Thanks

 

I’m no PCP expert but my experience is the “ balloon ” payment is what you have to pay at end of term if you want to keep the car. The residual value of the car is normally higher than this and it is normal to have enough equity to pay a deposit on your next pcp contract.

You can also get a settlement figure and trade in the car before end of term again normally with enough equity to put down as a deposit on a new car

On 15/08/2021 at 16:34, Stuart-h said:

Cheers guys. 
the car is on pcp fiance. 

Are you engaged to your car?😘

With PCP, you are in essence paying mostly interest and a tiny portion of the capital of the car (think of it something like an Interest only mortgage). With Hire Purchase, this is akin to a standard repayment mortgage.

 

At the end of the initial term - anything from 24 to 37 months, you have to pay down the lump sum. As you are paying down less on PCP, this is why there is a mileage restriction, so to try and keep the value up.

 

You have three choices; keep the car and finance the remainder of the value of the car. You can trade it in against the value of a new car (deposit/down payment) or as long as the mileage is kept within the initial agreed limits, you can walk away with no more to pay.

 

Of course, dealers want your trade, so they will give you extra against your trade in to allow you to trade up to a new car.

 

Does that help?

 

Hi Guys, Thanks for the PCP comments. Yes helpful, I like the interest only mortgage comparison, however unlike a house a car is a well known depreciating asset,   (thats the way it is I accept but t's the level of depreciation figure thats spooking me,  or  more accurately the balloon payment maybe Im figure.-    is the balloon payment figure the same as the residual value of the car,  (what Im likely to get as a trade in at the end of the term) or as you suggest is it likely to be more than the balloon payment (all things being OK) when I come to trade it for another shiny new toy?

 

 

As said in my post above, the ballon payment is what you pay if you want to keep the car. 
I’m new to this PCP malarkey and I’ve just swapped in my Kodiaq with 10 months till the end of my 4 year PCP and got a decent deposit to put down on a new one when the remaining finance was cleared.

As varaderoguy says above you should always come out with enough for a deposit on the next one.

As with all things in life nothing is ever certain- except taxes and death of course.