Hi,

I've got an ST-Line 125ps Chrome Blue with Sat Nav and it's on 39-month finance. I've had this car for about 4 months now and already looking to get something bigger with Ford (upgrading), however, would have to pay 5k to cover the negative equity.

Rather than paying that off, I was wondering if it would be possible to let someone else finance my car in their name. So ultimately, the finance agreement carries on, but someone else has my car and the responsibility of upkeeping payments.  

Now I know what you're thinking; why would anyone want to take over the finance in my name when they can get one on a lower PCP?

Well, I thought that whatever Ford offered for exactly the same contract as mine, I would match it and beat it so I am paying abit for someone else on my current car and then pay monthly for the new car I want. This actually works out alot cheaper than having a loan for me.

 

Let me know...........

42 minutes ago, MrTKingston said:

Hi,

I've got an ST-Line 125ps Chrome Blue with Sat Nav and it's on 39-month finance. I've had this car for about 4 months now and already looking to get something bigger with Ford (upgrading), however, would have to pay 5k to cover the negative equity.

Rather than paying that off, I was wondering if it would be possible to let someone else finance my car in their name. So ultimately, the finance agreement carries on, but someone else has my car and the responsibility of upkeeping payments.  

Now I know what you're thinking; why would anyone want to take over the finance in my name when they can get one on a lower PCP?

Well, I thought that whatever Ford offered for exactly the same contract as mine, I would match it and beat it so I am paying abit for someone else on my current car and then pay monthly for the new car I want. This actually works out alot cheaper than having a loan for me.

 

Let me know...........

As far as i’m aware, you wouldn’t be able to transfer PCP to someone else unless it was classed as exceptional circumstance.

Personally, I would also, as a potential buyer, stay away from any deals on which the former owner contributes to the remaining finance as if in the event that you are able to transfer PCP to someone else, that someone else is paying the monthly figure you now pay. So as a new buyer, i’d be relying on the former owner remembering to send me £20-30 or whatever number the difference you agree on to cover this “better deal” that you mention. Which overall, is just far too complex and “ risky”than just going out and getting a PCP with Ford themselves. 

In my eyes your real options are:

1. Change to new car on pcp and cover the £5k negative equity.

2. Request the pcp settlement figure (which is likely to include the balloon payment at the end), take out a loan to cover said settlement figure. Sell the car and with the money, pay off the loan you took out to pay for the settlement and you will obviously be losing some money between the settlement figure and sale price you may agree on.

i’d be highly doubtful there’d be many interested in transferring and taking up your loan when the Ford deals are usually fairly good in the first place.

This does illustrate the problem of deciding to change a new car after a short time, whichever way you have financed it - you generally lose 20-25% as soon as it has left the showroom. 

To add a third option to the suggestions above: hang on until your payments have at least partly caught up with the initial depreciation hit.

Fourth option perhaps: keep the ST if you like it and buy something for 5k that’s a bit bigger but older. I know you may not have room or want to have two cars, just an option maybe.

That’s the reason why I’m here. I kept my bmw and bought a Fiesta.