Advice

Marcus-Aurelius

Looking for some advice on sale of car.

Have a loan from credit union for 12k for a 2011 toyota auris 1.8, looking to change car to vw golf newer yr and not sure what to do.

Option to sell car privately and pay off credit union, then go to vw for pcp for golf, gimme some thoughts please, R

CIP4

Well if it's a personal loan and not a car loan you wouldn't have to clear it when you sell the car. Not sure if the credit unions do car finance like banks where the loan is on the car and would have to be cleared when selling the car.

Marcus-Aurelius

its a car loan alright with the credit union, made a bad call on the auris, jumped in too soon and kinda regret now. nice motor low mileage but set on golf now

CIP4

yeswecan wrote: »

its a car loan alright with the credit union, made a bad call on the auris, jumped in too soon and kinda regret now. nice motor low mileage but set on golf now

The problem with selling a car privately that has finance on it most people will be put off it and would prefer to buy one with no finance.

The easiest option would be to trade the car against the new golf no messing with time wasters and a greatly reduced risk of anything going wrong. However that almost always works out more expensive than selling privately and buying straight. Sometimes the difference can be small.

Go to at least 3 VW garages and get a price for trading and buying straight and then make a decision on what's the best option.

bazz26

I'd say you could be in negative equity on the Auris, i.e. it's current market value is probably worth less than the 12k loan taken out on it. If it were me I'd try and sell the Auris privately and pay off as much of the 12k loan before getting into a PCP deal on the Golf.

The thing with most Credit Union loans is that you normally only pay interest on the outstanding loan balance rather than on the original borrowed amount. For example if you borrow 12k and pay them a 2k lump sum, then the interest is based on the outstanding 10k balance. Also I don't think Credit Union loans turn up on finance checks as they are not secured on what they are borrowed for, if they are secured then it's usually on the borrower's savings to my knowledge.

Atlantic Dawn

What will you do when PCP term ends, have you planned for that?

Marcus-Aurelius

Gimme some options people! I havent really thought about it tbh!

Atlantic Dawn

Atlantic Dawn wrote: »

What will you do when PCP term ends, have you planned for that?

he'll be rode up a stick :P

Alanstrainor

yeswecan wrote: »

Gimme some options people! I havent really thought about it tbh!

You need to research what PCP actually is. And then decide if it's worth it to you. I certainly wouldn't be entering into a PCP agreement anyway.

grogi

yeswecan wrote: »

Looking for some advice on sale of car.

Have a loan from credit union for 12k for a 2011 toyota auris 1.8, looking to change car to vw golf newer yr and not sure what to do.

Option to sell car privately and pay off credit union, then go to vw for pcp for golf, gimme some thoughts please, R

Start with this... http://www.debttolife.com/the-seven-rules-of-managing-your-money

Marcus-Aurelius

thanks

mikeecho

PCP ...

Won't touch it with a barge pole.

What happens after 3/4 years.

You don't own a car.

Either buy what you can afford, or get a 3 / 4 yr loan

grogi

mikeecho wrote: »

PCP ...

Won't touch it with a barge pole.

What happens after 3/4 years.

You don't own a car.

Either buy what you can afford, or get a 3 / 4 yr loan

Unless you're buying tools or something you really need (house for instance, a car to commute from remote place etc.) - don't ever get loan on an asset because you cannot buy one upfront. New car, TV, Playstation, iPhone - all that stuff you don't need, but want.

If you have the money and want one - go ahead. Optimise and in some rare cases loan will be more beneficial, so take it then. PCP might be ok.
But don't take another loan because you want a new toy.

Alanstrainor

Alanstrainor wrote: »

You need to research what PCP actually is. And then decide if it's worth it to you. I certainly wouldn't be entering into a PCP agreement anyway.

PCP is a great way to buy a car imo, especially with very low or 0% finance deals going. Its probably the cheapest way there has ever been to buy a car without paying in cash and really who would either have the cash for a new car or be foolish enough to tie it all up in a car. The monthly repayments are far lower than a loan, the op will probably get a new car on PCP for less per month than he is paying for the 2011 car he has

After 3 years the best option is trade it in for a new car. The future value for cars is priced to give plenty of equity after the 3 years so only a small or possibly no deposit would be required to trade up to a brand new car and keep paying a similar amount per month.

The second best option is to save enough per month on top of the repayment in order to be able to buy the car outright (or give you the option to anyway) after the 3 years.

The third and least sensible option is to hand the car back, yes you lose the deposit but if your financial situation is bad then its a way to get out without getting a black mark against your credit rating.

mikeecho wrote: »

PCP ...

or get a 3 / 4 yr loan

A car loan is a far more expensive way to buy a car than PCP, most car loans are 8%+ interest while PCP is usually 0 to 5%. Whats the big deal of what happens after the 3 years, most people trade up anyway so not owning the car outright is no big deal in fact its better really as you have a lower monthly repayment and less of your money tied up in the car. Also as above you can put money aside along with the PCP repayment to cover the cost of buying the car outright at the end of the term if you plan to keep the car but the reality is most people get a new car so no advantage in owning outright.

The PCP scaremongering from some posters is unfounded.

exaisle

As per earlier posts, I'd avoid PCP's like the plague.

Just to be clear, is the 12k the current balance left on the credit union loan?

My advice would be that unless and until the amount you'll get for the car will pay off the finance on it, do not, under any circumstances think about rolling over finance on one car onto another. That's a slippery slope. So...hang on to the Auris and review the situation in a year's time.

At some point in the future, you'll have the loan paid off AND you can use the Auris to trade in against something more up to date....even though it might only be worth a few grand, you'll end up with lower repayments and a healthier financial situation.

mikeecho

What's the fascination with having to have a new reg.

Do you really need a new car, with the instant depreciation associated with it.

Buy what you can afford.
Avoid finance at all costs.
Be aware of pitfalls.




And that goes for every large purchase

mikeecho

..... also

I honestly believe that in 4years time, pcp will be the next big financial scandal, with ppl phoning up their local radio stn complaining about how they were scammed, and that the gov should do something.


Use your heads and calculators folks

Special Circumstances

mikeecho wrote: »

..... also

I honestly believe that in 4years time, pcp will be the next big financial scandal, with ppl phoning up their local radio stn complaining about how they were scammed, and that the gov should do something.


Use your heads and calculators folks

I hope they at least spec the things nicely so the rest of us can enjoy them later... what do you mean no GT86s have been sold of PCP?????

mikeecho

Special Circumstances wrote: »

I hope they at least spec the things nicely so the rest of us can enjoy them later... what do you mean no GT86s have been sold of PCP?????

I hope they spec them nicely as well .

An accountant friend of mine thinks pcp is great.
He's not gonna buy anything on pcp, but he's gonna wait 3yrs to pick up a bargain second hand car


(I don't get the gt86 reference )

mikeecho

mikeecho wrote: »

What's the fascination with having to have a new reg.

Brand new, spec'd the way you want, colour/wheels/interior combo you want, out of the box condition as untouched by anyone else, long warranty etc etc etc

John_Rambo

Nikolai Cuddly Mortar wrote: »

Brand new, spec'd the way you want, colour/wheels/interior combo you want, out of the box condition as untouched by anyone else, long warranty etc etc etc

Nox001, have you bought a car on PCP?

I don't mean if you intend to, or know people that do. I mean have you bought using PCP and have experience of it?

Special Circumstances

mikeecho wrote: »

(I don't get the gt86 reference )

I'd bet that nobody has bought anything petrol/sporty on PCP, a sea of 520d and Quashqais I'd say.

John_Rambo

mikeecho wrote: »

What's the fascination with having to have a new reg.

Prestige and ego!

John_Rambo

John_Rambo wrote: »

Nox001, have you bought a car on PCP?

I don't mean if you intend to, or know people that do. I mean have you bought using PCP and have experience of it?

No I haven't yet but I intend to and have basically already gone through the process and know exactly how it works in helping a sibling buy a car on PCP.

Am I only allowed to offer advise or something if I have actually done it myself?

John_Rambo wrote: »

Prestige and ego!

Nonsense.

Special Circumstances wrote: »

I'd bet that nobody has bought anything petrol/sporty on PCP, a sea of 520d and Quashqais I'd say.

Most new cars being sold nowadays are on PCP so plenty of sporty stuff around. Lots of Golf Rs, GTi and GTDs for example.

John_Rambo

Peyton Large Password wrote: »

No I haven't yet but I intend to and have basically already gone through the process and know exactly how it works in helping a sibling buy a car on PCP.

Thought as much.

Give all the advice you want, but I'd warn anyone reading not to take any advice from someone who has no experience of what they're talking about!

John_Rambo

John_Rambo wrote: »

Thought as much.

Give all the advice you want, but I'd warn anyone reading not to take any advice from someone who has no experience of what they're talking about!

What experience do you have of it to advice people against it.

Does going through every step of the process helping someone else not count as experience? Of course it does, I have as much experience as if I did it myself. Do you think people who offer advice be it financial or otherwise actually go through every process themselves to allow them offer advice on it.

You are talking pure gutter and are contributing nothing to this thread.

John_Rambo

Anyone actually have any experience of PCP finance?

I'd be interested to hear how they got on. Brother in law is obsessed with registration plates instead of cars, wants to go down the PCP route.

John_Rambo

John_Rambo wrote: »

Anyone actually have any experience of PCP finance?

I'd be interested to hear how they got on. Brother in law is obsessed with registration plates instead of cars, wants to go down the PCP route.

theres a whole thread on it in the buying section

John_Rambo

BrownFinger wrote: »

theres a whole thread on it in the buying section

Nice one. I'll direct him.