Selling with PCP outstanding

aFlabbyPanda

I've 2 cars on pcp (161 fabia, 191 octavia) and due to a sudden decision to build a new house we want to get rid of the cars and buy something from the bangernomics thread!


But obviously I need to clear the PCP settlement figure on each car. I did this years ago with a HP car and simply for the buyer to make the cheque out to the finance company to clear the balance. All worked out etc.

But I'm worried now that this will put people off when I advertised it etc. I could clear one from my savings but would prefer not to since it puts me under pressure, etc .

Just curious what peoples thoughts are?

RobFowl

The bottom line is that it's not yours to sell.

aFlabbyPanda

RobFowl wrote: »

The bottom line is that it's not yours to sell.

Well yes and no, I've already spoken to the finance company who have provided the settlement and confirmed that once its cleared the new owner can take possession.

Lantus

The 191 is a problem as you've just bought it. Chances of selling privately are slim to none as no one will buy off you when they can get interest free on a new one. Talk to dealer on options but I doubt they will want it back.

Better options on fabia but its still an expensive car to sell 2nd hand at 4 yrs old.

You'd be be better off keeping the octavia as the family car at least.

aFlabbyPanda

yeah the octavia stings, its so new and depreciation is making it awkward. The fabia is ok since if I sell for the settlement price its about 2k below the next nearest one on donedeal. Its just not having people scared off by the PCP & the process of selling/settling etc.

Lantus

With fabia best bet is to pay off finance with personal loan and sell car debt free. Easy for buyer and you need every advantage.

161 is a good year with android auto and its a good car in class. Said the man who also has a 161 fabia!

Water2626262

aFlabbyPanda wrote: »

I've 2 cars on pcp (161 fabia, 191 octavia) and due to a sudden decision to build a new house we want to get rid of the cars and buy something from the bangernomics thread!


But obviously I need to clear the PCP settlement figure on each car. I did this years ago with a HP car and simply for the buyer to make the cheque out to the finance company to clear the balance. All worked out etc.

But I'm worried now that this will put people off when I advertised it etc. I could clear one from my savings but would prefer not to since it puts me under pressure, etc .

Just curious what peoples thoughts are?

It’s no different to the standard HP. Car is worth X in private sale, outstanding balance is Y. Seller writes a cheque for Y same as before. The only difference is you might have less equity as pcp deposit is usually 10-30% max.

Talk to your bank regarding mortgage approval. You may still be able to get approved the full 3.5 times your salary and still have the pcp outgoings. It’s not like years ago where your max approval was based on how much you could afford to pay back per month. The 3.5 cap might leave some repayment capacity for other outgoings

Salary Negotiator

Water2626262 wrote: »

It’s no different to the standard HP. Car is worth X in private sale, outstanding balance is Y. Seller writes a cheque for Y same as before. The only difference is you might have less equity as pcp deposit is usually 10-30% max.

Talk to your bank regarding mortgage approval. You may still be able to get approved the full 3.5 times your salary and still have the pcp outgoings. It’s not like years ago where your max approval was based on how much you could afford to pay back per month. The 3.5 cap might leave some repayment capacity for other outgoings

Definitely worth checking with the bank first. I have a HP car payment of c. €700 per month that made no difference to my mortgage approval.

I was approved for 3.5 times salary with no issues.

Water2626262

I might add that you’ve taken the depreciation hit so it won’t be nice to sell the 191. If it doesn’t affect your mortgage approval might be worth retaining the 191. You are still taking the hit but you’ve a nice car from new to enjoy.

There are also reams of 191/192 Skodas hitting the forecourt. All the hire drives return between September and November. Even the dealers struggle to sell these. I’m sure it’s less for Skoda but Hire drives could account for 20% plus of a brands new regs.

aFlabbyPanda

The mortgage is already approved, this is just to reduce the monthly outgoings so we can focus on the house, etc.

Yeah I can see the 191 staying since its too new but the 161 will move easy enough.

Water2626262

aFlabbyPanda wrote: »

The mortgage is already approved, this is just to reduce the monthly outgoings so we can focus on the house, etc.

Yeah I can see the 191 staying since its too new but the 161 will move easy enough.

It’s kind of ridiculous to pay down a car over 8 years but there are 5 year GMFV refinances in the market. Your monthly payment could come down by a fair bit over 5 years but you are getting stiffed with further interest etc. Just an option anyway. You should have ok equity in the 161 regardless

aFlabbyPanda

I'm not willing to reborrow as we got 0% on the 191. The 161 was only 2%. 8% is the lowest loan at the moment.