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PCP - Loan to repay ballon payment

  • 12-06-2015 2:05pm
    #1
    dshakey
    Registered Users, Registered Users 2 Posts: 312 ✭✭


    I am coming near to the end of PCP on a ford focus, but would now like to change brands.

    The car financed for 20K after deposits, promotions etc.
    paying 350 per month for past 3 years. so 12600 off the cost of the 20K

    I have a minimum guarantee future value (GFV) of 8900

    my question is if i got a loan to repay the balloon 8900 i would then own the car out right. (apart from bank loan)

    if i went to a another brand and traded the car in I should get at least 15k. carzone advertising similar for 20K 15K-8900K = 6100K in a deposit.

    am i right in thinking this?


Comments

  • #2
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    Yes if you pay the 8900 you own the car, depending on the type of loan you get. If the car is secured on loan then technically the finance company would own it until you pay the 8900 back, but a credit union loan etc wouldn't be secured against the car so you would own it then.

    You're also correct on the potential equity in the deal as a trade in against another brand.


  • #3
    knifey_spoonie
    Registered Users, Registered Users 2 Posts: 3,648 ✭✭✭knifey_spoonie


    The way you should be handling a situation like that is allowing the dealer(who your buying your new car off) to pay the settlement(GMFV), getting another separate unsecured loan would be madness


    This is how it would work out
    New car €25000
    Trade-in €15000

    Cost to change €10000
    GMFV € 8900

    Total Finance € 18900


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