Selling a Car on pcp

[Jack1694]

Hi Everyone,

6 weeks ago I bought a Cupra 300 on PCP, however since then I’ve been offered a job I can’t refuse which would involve a lot more mileage so I’d look to change to something more economical. My local seat dealer has a Mercedes C220d in which would fit the bill perfect however the trade in value is substantially less than the settlement figure. I accept I’m going to be at a loss but not to this extent!

Anyway the question I’m asking is what are people’s views on selling / buying cars on PCP privately, has anyone done it, does it put people off?

 

[Neil Francis]

If the buyer HPI checks it, it will show as finance outstanding and will no doubt put buyers off.

 

[LouG]

How long will it take for the more economical car to make up your losses, let alone save you money?

 

[DElliot12]

hello

anyone buying the car privately will see the outstanding finance on it

so only option is to trade car in but after only 6 weeks of PCP agreement you are going to have a lot of negative equity which will be carried onto the next car. depending on the figures may be better to keep the cupra and run it longer

 

[Jack1694]

Thanks for the responses

On long journeys the Cupra tends to get 35-40mpg, i was hoping to see 60 from a diesel, used to get 55 from my 330d so don’t think it’s un achievable, mileage will be 192 miles a day give or take, also the pcp is for 18k a year, have to take a view on the depreciation the Cupra will be hit with doing a years worth of mileage in 2 1/2 months. I would clearly state when advertising that the car was on pcp and the purchasers funds would be used to pay off the finance agreement, the other option I was thinking is taking a bank loan out to buy out the pcp, I know Sainsbury’s do a low rate, then I could look to clear the balance when the car is sold.

Also how many people buy 20k cars private? Wouldn’t want it sat on my drive doing nothing because there isn’t much of a market

Jack

 

[DElliot12]

Hmm this is always an issue with pcp is that of your circumstances change you are screwed.

If you get a bank loan you aren't guaranteed the low rate and you don't have HP/PCP protection.

Would the garage accept you just returning thr vehicle and unwind the deal?

 

[Jack1694]

Hmm this is always an issue with pcp is that of your circumstances change you are screwed.

If you get a bank loan you aren't guaranteed the low rate and you don't have HP/PCP protection.

Would the garage accept you just returning thr vehicle and unwind the deal?

Unfortunately not, I spoke to the supplying dealer who are happy to buy the car back, but at trade price which is some 20% less than I paid

Jack

 

[DElliot12]

Hmm so if you sell it privately you will still have a shortfall and i wouldn't drive away in a private used carvunless the finance was settled in full so its a question of how you pay the shortfall with a loan or savings then have to take out a new HP agreement for the Merc

 

[Jack1694]

Hmm so if you sell it privately you will still have a shortfall and i wouldn't drive away in a private used carvunless the finance was settled in full so its a question of how you pay the shortfall with a loan or savings then have to take out a new HP agreement for the Merc

Something like that, or keep the loan used to pay the pcp agreement off and use that to purchase the merc, then I don’t have any finance ties to the vehicle should I wish to change again

 

[Jack1694]

I suppose the main question is, do people buy used performance cars a couple of years old at circa 20k, privately or do they all go to a dealer for the support and finance packages they can offer?

 

[Hag]

Would the dealer offer the car on their website etc on a sale or return basis for you with the view to agreeing a price you want back for the car leaving them less margin but also a lot less risk and would help you out as they could put the car on a used pcp and customers usually would look at a dealer or finance broker to buy a car like this. Just a thought as they get to sell a car with no costs or interest rates attached to stocking a 20k car and you can squeeze a bit more money (have less neg eq)


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[Hag]

Would the dealer offer the car on their website etc on a sale or return basis for you with the view to agreeing a price you want back for the car leaving them less margin but also a lot less risk and would help you out as they could put the car on a used pcp and customers usually would look at a dealer or finance broker to buy a car like this. Just a thought as they get to sell a car with no costs or interest rates attached to stocking a 20k car and you can squeeze a bit more money (have less neg eq)


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This would also mean you could keep using it unless they arrange an appointment on it for a viewing etc and then I’m sure they could put you in a demo for a day


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[LouG]

Thanks for the responses

On long journeys the Cupra tends to get 35-40mpg, i was hoping to see 60 from a diesel, used to get 55 from my 330d so don’t think it’s un achievable, mileage will be 192 miles a day give or take, also the pcp is for 18k a year, have to take a view on the depreciation the Cupra will be hit with doing a years worth of mileage in 2 1/2 months. I would clearly state when advertising that the car was on pcp and the purchasers funds would be used to pay off the finance agreement, the other option I was thinking is taking a bank loan out to buy out the pcp, I know Sainsbury’s do a low rate, then I could look to clear the balance when the car is sold.

Also how many people buy 20k cars private? Wouldn’t want it sat on my drive doing nothing because there isn’t much of a market

Jack

I don't know your fuel costs so can't do the calculation. But I suspect the difference between petrol and diesel, sans tax, is a lot less than down here. Most of Europe is.

 

[Jack1694]

This would also mean you could keep using it unless they arrange an appointment on it for a viewing etc and then I’m sure they could put you in a demo for a day


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Hag, not a bad idea, I assume you’re referring to the supplying dealer? As they are in Cambridge and I’m based near Hull so logistically would be a bit of a nightmare !

 

[Jack1694]

I don't know your fuel costs so can't do the calculation. But I suspect the difference between petrol and diesel, sans tax, is a lot less than down here. Most of Europe is.

Fuel cost is about £1.15 p ltr for petrol and £1.22 for diesel (ish)

 

[Hag]

Hag, not a bad idea, I assume you’re referring to the supplying dealer? As they are in Cambridge and I’m based near Hull so logistically would be a bit of a nightmare !

That dealer or your local dealer if they’ll play ball. For them it’s free money and profit without any outlay. Assuming it will sell fairly quickly and then qualify a customer well enough before the test drive there’s no reason why they might only need to borrow the car once to get it gone


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[DElliot12]

Something like that, or keep the loan used to pay the pcp agreement off and use that to purchase the merc, then I don’t have any finance ties to the vehicle should I wish to change again

with a HP agreement though you are tied to the vehicle so no mileage restrictions which is good plus you have the protection of having HP.

on getting the dealer to sell your car they will buy it off you and have to prep the car again, so depending on if it's a big franchise dealer, I don't see them doing this. But the dealership will be able to fund the neg eq on the vehicle with a lender so you can do that and it's hassle free as selling a car with outstanding finance on it privately is always risky and getting a personal loan for a car is also a bit risky.

 

[LouG]

Fuel cost is about £1.15 p ltr for petrol and £1.22 for diesel (ish)

Wow. Our diesel is about .50 cents less than 91. But we do have RUC levys on top of diesel which is around $68 per 1000km's, roughly .97 cents/litre for your average diesel. This is why diesels are disappearing down here.

 

[LouG]

I'm no mathematician, but I make it around 2200 of your pounds in fuel savings. Will your changeover costs be much less than that?

 

[Ben GT]

I sold a car on pcp once. I got a settlement quote sent through on a letter then had the buyer do a bankers draft to the finance company for the amount of pcp outstanding then he gave me the difference in cash