Jobs OXO wrote: » https://www.irishtimes.com/business/personal-finance/celtic-tiger-ii-what-2018-may-mean-for-your-finances-1.3331406?mode=amphttp://www.irishexaminer.com/ireland/house-prices-surging-to-celtic-tiger-peaks-465172.htmlhttps://m.independent.ie/irish-news/health/the-celtic-tiger-is-back-in-terms-of-happiness-at-least-36389458.html
lawred2 wrote: » A few opinion pieces... I'm sold. This is a supply and demand situation. Not a credit bubble. Although some would argue quite reasonably that PCP is a lending bubble. This thread would attest to that
Jobs OXO wrote: » lawred2 wrote: » A few opinion pieces... I'm sold. This is a supply and demand situation. Not a credit bubble. Although some would argue quite reasonably that PCP is a lending bubble. This thread would attest to that Look at hard data yourself on GDP, unemployment rates, credit & wage growth, tax cuts, increase car sales and house prices if you want or just act ignorant. I really don't care.
NinjaTruncs wrote: » How about you keep that to a treat not about repaying a PCP loan early.
laserlad2010 wrote: » Folks all responses appreciated, try to stick to the questions at hand rather than slagging her off please. Yeah, look, I can't argue with the line "tough cookies, she should have realised what she was getting into" because that's exactly what's gone on. However, I'm just trying to help her fix the situation. Her repayments are 320 a month, and with tolls and petrol her car costs approach 700 a month. I have gone through the paperwork and that's what they want if she returns the car now, which is bizarre but that's the official written response they've given. It possibly includes the mileage charge. Look, at the end of the day, she can make the repayments but then she struggles for the rest of the month. I feel it's probably a combination of the overall car costs rather than the actual PCP repayments. My query really is how else can someone get out of a PCP rather than the halfway clause. Has anyone sold the car separately and then given the financiers a cheque?
drunkmonkey wrote: » She can't afford her job not the car, the commute is to far and the pay not worth it. She's paying over 8k a year to commute. Ask for rise, move closer to work, change jobs. Is public transport an option? That's the elephant needs to be tackled first. Cheaper car isn't going to save a huge amount.
alias no.9 wrote: » You definitely need to get a handle on the full figures. Paying €11k to hand the car back makes no sense under any circumstances. There has been 18 months of payments on top of the deposit and the car has to be worth €15k in even the most pessimistic valuation. I'm going to assume a deposit/trade in of at least 10% of the list price even if it includes a deposit contribution from the dealer/distributor so let's assume list price less deposit is ballpark €20k. We don't know the exact APR but €320 a month for 36 months paid off €20k should be leaving a balloon payment in the order of €11k max so with 18 of those monthly payments made, there'll be maybe €16k max outstanding, all very approximate numbers. With the value of the car, it looks close to break even in a scenario where it's possible to sell it privately and clear the loan. As others have suggested, sticking out the 36 months PCP term may be the most benign option since selling to clear the loan leaves her needing another car, on finance again it would seem. Couple this with finding somewhere close to work to live as you mention she is paying rent anyway (assuming that it won't be a massive hike in rent) or alternatively find work close to where she lives now. This will help get the commuting costs under control as well as getting the 36 month mileage closer to the agreed PCP target. All of this is based on crude assumptions filling some of the many blanks. To me, the commuting costs seem to be the elephant in the room.
Jobs OXO wrote: » Welcome to the shoddy advice hour eh?! The garage want 11k AND the car.....
MarkN wrote: » Seriously, if you’ve nothing to contribute would you ever do one. The agreement is with a bank, not the garage. So far it hasn’t even been clear what it is that they want back exactly.
Jobs OXO wrote: » 11k and the car. It's been stated numerous times. There's no place for your confusion if you can't understand the basic issue here.
mickdw wrote: » Yes but there is a strong / almost certain possibility that that is not what is actually needed by the bank as it doesnt make sense. Those cars are only about 23k so assuming the op has made the 18 payments to date, the outstanding amount to buy out the car today should only be 14.5 to 17k range. To suggest that the only solution is to pay 11k and hand in a car worth circa 15k as well is nuts.
alias no.9 wrote: » There's no shortage of confusion. It's been pointed out, backed up with basic calculations, that €11k plus the surrender of the car really doesn't add up. It is either a total pisstake by the garage or there's a very big piece of information missing. Is there maybe a history of missed payments where the extra interest and penalties do actually mean that €11k plus the car back is the correct figure, that'd be a lot of missed payments or very punitive penalties. Maybe the deposit was bigger than we've been assuming or the op neglected to mention a trade in and the figure of €11k is full and final settlement of the outstanding finance with outright ownership of the car, it's just been poorly communicated. Maybe one of the previous posters was correct and it was spec'd up with thousands in extras ant the list price was closer to €30k. The point is we don't know what's going on, there's no shortage of confusion. The op needs to gather all of the information How much of a deposit? How much was financed at what interest rate? How much was repaid to date and have there been any missed payments and penalties? Most importantly, they need a figure from the finance company and not the garage of what is currently outstanding. The only solid figures we have to date is that it is 18 months into a 36 month term and the scheduled monthly payment is €320.
MarkN wrote: » Welcome to the patronising hour eh?! Ever find your circumstances in life have changed? No? Lucky you. OP, all the bank want is their money. If you can sell that car for 15k and give the bank a cheque for 11k and keep the rest, happy days.
laserlad2010 wrote: » Went through the letters again. The letter asking for 11k and the car was from earlier this year as she had enquired about this previously. The most recent figure is 19,000 to buy the car. She's a primary school teacher so can't just change jobs, or get public transport as the school isn't near a bus or train. I think she just has to keep the car until the contract is up and then take out a loan for the GMFV. Thanks all for your comments.
Kailee Muscular Shrapnel wrote: » Well look she has a permenent reliable job. Just rebudget and it will be fine.She could get a summer jobs too....I jest I jest
MarkN wrote: » So the settlement figure is €19,000? It’s very important that the word settlement is present as there can be two figures - one of the total outstanding and one that the bank will accept if it were to be paid off today.
laserlad2010 wrote: » Yep letter says settlement. Really appreciate all of the Boards knowledge and opinions on this!
colm_mcm wrote: » The same way I can sell my neighbours house. I'd need to buy it off him first.
laserlad2010 wrote: » My girlfriend can't afford her PCP contract any more. She is 18 months through a 36 month PCP contract on a 162 Mini One D, and wants to get rid of it. The garage want her to pay €11,000 if she returns the car now. She's done a fair whack of mileage above her allowance which will hit her when/if she returns the car. It's obvious that she should never have taken the contract, or been allowed to take the contract (salary not high enough, can't afford balloon payment), but that's a moot point. Can she sell the car separately and pay the garage? Has anyone any experience of returning a car halfway through PCP?
laserlad2010 wrote: » Went through the letters again. The letter asking for 11k and the car was from earlier this year as she had enquired about this previously. The most recent figure is 19,000 to buy the car. It was 27,000 initially with credit costs. She's a primary school teacher so can't just change jobs, or get public transport as the school isn't near a bus or train. I think she just has to keep the car until the contract is up and then take out a loan for the GMFV. Thanks all for your comments.
