# Cancelling a pcp and going with another company?



## Guitarjon (Jul 13, 2012)

Long story short, change in personal circumstances. Wife has ford options has done for around 5 years with various different cars. 

Currently pays £280 a month for a Ford Fiesta ecoboost. Want something bigger but obviously being a ford a focus or Mondeo is more expensive. Other brands do bigger cars at lesser prices. 

Here's the snag. She's only had the current car for 5 months. In the past we've been able to trade in early and get different deals sticking within evans Halshaw/ ford options. She'd quite like to either start again or find a way of transferring the pcp payments over? Is there anyway mr Nissan would say we will pay ford for the car? (Used as an example) 

She's enjoyed the ecoboost fiestas for a few years now but the size just isn't enough now, despite new fiestas been a decent size. We both feel £280 for a small car seems quite a lot when compared to something like a vauxhall corsa vxr for £159 per month. Ok,ma corsa is still small but it's a big difference in price.


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## WhiteRoc_170 (Jan 31, 2013)

Can't help as I haven't changed myself. 
But £280 for a fiesta?
What is it a top spec St? My scirocco was £288 brand new. Seems an awful lot as you say


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## Guitarjon (Jul 13, 2012)

WhiteRoc_170 said:


> Can't help as I haven't changed myself.
> But £280 for a fiesta?
> What is it a top spec St? My scirocco was £288 brand new. Seems an awful lot as you say


This is the problem, we started out with a £300 trade in old pugeot 206. Wife was fed up of used cars so went for the car she wanted without really looking around. We've had 2 more cars since from the same dealer and just listened to what ey said. End of the day she chose to do it, shes happy to pay for it but we are starting to see its a big expenditure from our budget (she's currently the breadwinner while I look after our 6 month old). She's realised she quite likes driving my BMW but we both know mine will require a few hundred/ thousand in the next few years to keep it a float so considering chopping it in. Trouble is we need a larger car than a fiesta.


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## Brigham1806 (Apr 1, 2011)

Jon,

You can PX any PCP at any point to any Dealer as they view it normally as Hire purchase would.  *HOWEVER* you will need to make sure you are in positive equity otherwise the move might not be a cheap one.

easiest way to find out is visit a garage to get a quote/deal, they will tell you in minutes if it is a no go.


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## andystevens (Dec 12, 2011)

Finance can't be transferred to another car, dealer or whatever. You will have to settle the current finance/PCP on the present car first before buying another car unless of course you decide to have 2 loans running.

I sold my ST2 privately though I had had it for 20 months & got enough to pay off finance & get deposit back.


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## justina3 (Jan 11, 2008)

yikes, some of those figures scare me to death

you have to be so savvy for these kind of schemes to add up. 

stay at home dad that does sound like fun.


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## mt8 (Jan 7, 2011)

From personal experiences you normally have to be approaching the last 12 months of a pcp deal to get near a positive equity situation, having said that each deal is different and depends on car, condition, mileage etc.

As others have said in previous posts there is nothing to stop you from getting a settlement figure direct from the finance company and paying this total off as and when you like.


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## macca666 (Mar 30, 2010)

andystevens said:


> Finance can't be transferred to another car, dealer or whatever. You will have to settle the current finance/PCP on the present car first before buying another car unless of course you decide to have 2 loans running.
> 
> I sold my ST2 privately though I had had it for 20 months & got enough to pay off finance & get deposit back.


Finance won't be transferred but the garage taking the fiesta will pay it off and take out pcp on the new car. As Brigham1806 says though you need to make sure you're in positive equity.

I've not done this personally but looked into it as I used to think you could only trade in early at the same dealer which put me off however this is not the case. I have a mate who went from Audi to BMW at different dealers when he was only 12 months into his deal. He ended up paying less per month as he was in positive equity. Also heard though that his mate had an SLK and tried to trade early but was in negative equity and the garage wanted a 7 grand payment to change over.

My advice to OP is contact the garage you're looking to get your new car from and see what they offer you :thumb:

Having just read mt8 post this was a 3 year deal so my mate was only 12 month into a 36 month deal but as he says each deal is different.


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## Maniac (May 20, 2012)

Check your agreement, but by law you have the right to settle any outstanding finance. As stated above you want to make sure that you're in 0 balance or positive equity otherwise you have to pay the more to cancel off the agreement when you sell the car back.

I suspect in this case, you've ended up in a situation that all dealers want, where you've added outstanding amounts of negative equity into a new car agreement, Hence the higher payments.

Personally I would try and get out of such an arrangement very quickly or as quickly as possible because essentially you're paying Not only for the car but also finance on the negative equity. 

The trap in all of this of course is that you want one car after another. This is the way that they maximise their income. In order to make sense of your finances and your own needs my own suggestion would simply be to buy new cars less often or indeed make them last for as long as possible.


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## IamDave (Feb 6, 2015)

As said above really you need to be at least 12 months in to be in positive equity. I had my focus on ford options and traded it in at 13/14 months and was still £1000 in negative equity so had to settle it myself.

You can find out your settlement figure by going online here:http://www.ford.co.uk/OwnerServices/FinanceandProtectionforOwners/ManageYourAccountOnline

You'll need the letter you got with your account number on for ford credit though.

Also as mentioned the garage arranges to pay off the PCP when they accept part ex of the vehicle then any outstanding negative equity may have needs to be paid by yourself (for me this was upon receipt of the new car I think).


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## andystevens (Dec 12, 2011)

mt8 said:


> From personal experiences you normally have to be approaching the last 12 months of a pcp deal to get near a positive equity situation, having said that each deal is different and depends on car, condition, mileage etc.
> 
> As others have said in previous posts there is nothing to stop you from getting a settlement figure direct from the finance company and paying this total off as and when you like.


I bought an Evoque Dynamic Lux new in March 2012 on a 5 year PCP. IIRC I put down £5000 deposit. Sold it after privately 10 months as I was offered a really good price, got enough money to repay all the finance, all deposit back plus £2000 so it can work in one's favour. Did a similar thing on my second Evoque - that was on 4 years PCP & sold that after 14 Months, paid all finance & got most of deposit back.


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## mt8 (Jan 7, 2011)

You did well on both deals to come out with a positive outcome but as I said earlier there are a lot of variables that can effect the outcome, I presume with the evoque that you got a good deal as it was a brand new model and in demand at the time of change as not many used on the market.

I have managed to pay off my settlement figure at the end of each deal with various manufacturers, and have a small deposit to put on the next vehicle but I have let them run near to completion on a 3 year pcp normally.


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## Guitarjon (Jul 13, 2012)

I personally think it's too early. Think we will make do for a while. She's happy with the car. Just means when I sell mine my banger car will have to be of a decent size. I was hoping to get something small and cheap to run. Never mind.


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## mart. (Jul 7, 2008)

I'm 18 months into a 2 year deal now and thinking about changing. 
I should have enough equity in the car to pay off and get deposit back. 
Time for a trip to the dealer I think.


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## mart. (Jul 7, 2008)

Well I'm screwed, Focus has lost £11,000 in value in 20 months, taking out my deposit so I have nothing left in it.


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## Guitarjon (Jul 13, 2012)

Ouch. Worth keeping? Youve taken the biggest hit now surely.


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## andy665 (Nov 1, 2005)

A high GMFV protects you in this case - sounds like car is worth less than the GMFV so at least the finance house takes the hit rather than you.

General rule of PCP is to put in as little as possible so making it easier to replicate again should you end up with no equity


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## mart. (Jul 7, 2008)

Car was 21K
Valued at 10600 now. 
Amount outstanding is 9500. 

I put 3.5k into it. 

Basically left with 1k so will now afford payments on new car. 

Will have to start again with older car. 

PCP never again.


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## Guest (Mar 20, 2016)

mart. said:


> Car was 21K
> Valued at 10600 now.
> Amount outstanding is 9500.
> 
> ...


What was the GMFV, out of interest?


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## lofty (Jun 19, 2007)

mart. said:


> Car was 21K
> Valued at 10600 now.
> Amount outstanding is 9500.
> 
> ...


Cars loose money whether you buy them for cash, HP or PCP them.
Did you get a good discount on the Focus when you bought it?


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## Guest (Mar 20, 2016)

andy665 said:


> General rule of PCP is to put in as little as possible so making it easier to replicate again should you end up with no equity


That makes perfect sense. PCP seems to be all about paying for a car's depreciation for the period that you look after it. 
Any deposit is just going to pay some of that depreciation up front. It will reduce your monthly payments, but you should never expect to get it back. 
In fact, as I understand it, you'll never get a deposit back. If things move in your favour and the finance company has under estimated the future value (which actually would make sense for them to do so), then you might have some "equity" to use to purchase another car on PCP, otherwise you have nothing - no money and no car.


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## mart. (Jul 7, 2008)

GMFV is around 9k. 
had a bit of discount.


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## mart. (Jul 7, 2008)

So my options are........

Hand the car back and walk away. 
Sell car privately - nightmare 

Go with the deal I sorted at mazda today


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## lofty (Jun 19, 2007)

Buying a new Ford you really need to get a big discount, anything between 20/25%. I got 24% off a Fiesta a few months ago for my Sister. If you had managed another couple of grand off the price you could have had the same monthly for £1500 deposit instead of £3500. The less you pay in the first place the less you loose. Have a look on Drive the Deal, Coast2Coast/Carwow for the best discounts.


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## DrEskimo (Jan 7, 2016)

lofty said:


> Buying a new Ford you really need to get a big discount, anything between 20/25%. I got 24% off a Fiesta a few months ago for my Sister. If you had managed another couple of grand off the price you could have had the same monthly for £1500 deposit instead of £3500. The less you pay in the first place the less you loose. Have a look on Drive the Deal, Coast2Coast/Carwow for the best discounts.


You don't loose more by putting more in upfront. You pay exactly the same amount. In fact, if anything you pay less by putting more upfront as you pay less interest.


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## lofty (Jun 19, 2007)

DrEskimo said:


> You don't loose more by putting more in upfront. You pay exactly the same amount. In fact, if anything you pay less by putting more upfront as you pay less interest.


I think you've misread my post.


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## DrEskimo (Jan 7, 2016)

lofty said:


> I think you've misread my post.


I think I did as well... sorry buddy


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## lofty (Jun 19, 2007)

DrEskimo said:


> I think I did as well... sorry buddy


:thumb:


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## James_R (Jun 28, 2007)

As someone said a bit earlier, you almost have to treat PCP like a contract hire.
You're basically paying for the depreciation of the car, but have the option of buying it at the end.

But really...if you have a 3 or 4 year PCP, who wants to pay the GFV at the end?
No-one, you want a new one by then.

I think we all have understand the only way we are going to minimise how much money we lose is by selling private, but when you still have finance on the car and you can't afford to pay it off, then thats when you go the easy route of p/x'ing the car back in somewhere for another.
So the dealer can pay off the finance and add it on to your figures for the new one.

Easiest way is to get a bank loan and buy the car, but dealers have great incentives for you to get in to the finance to start with by offering additional finance deposit allowances in the thousands.

EG.
Cash price - £22,000

Finance price - £22,000
Finance deposit allowance from manufacturer to take their finance package - £2,000
Net balance to finance - £20,000

Who's going to argue, you're getting £2k for nothing on some of these deals.


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## SteveTDCi (Feb 8, 2006)

You could always put it on pcp to get the offers then pay it off with a personal loan to get a lower rate. 

As for the very little equity in the focus, yes you could take whatever Mazda have offered you but you will be in the same situation in 3 years time.


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