Get out of a PCP/sell the car?

[Guy Heaton]

I'm 18 months into a 36 month deal on my  Focus STLX.   I think my car is worth a little more than the settlement figures, going by some cautious enquiries I've made.  This makes sense cos my monthly is based on 12000 miles a year and I've done 7000 in 18 months.   I'm paying 300 a month.  I made the mistake of adding extras and that whacks up the monthly.  If I'm honest I got excited by the idea of a new car.

Anyway, the whole point of this PCP was to change before the service which won't be that long now, and I'd have another, but Ford, unlike every other manufacturer, doesn't a do a decent midrange auto in the Focus.  Also I want to lower the monthlies.  We've been looking at Uni costs for our daughter and realised we need to save more than we have been doing.

Been looking at leasing.  I can get one of these on a 3 month deposit, 8k a year, for 250 a month over 3 years. 150bhp DSG SE-L lots of kit, leds, virtual cockpit, all that.

 https://www.skoda.co.uk/new-cars/scala  Whatcar of the year 2020.  Looks good, good size.  Lower monthlies.  Whats not to like.

I've been researching getting out of PCP early, and it is possible but looks hard work.  Has anyone done this and can share any advice?

Also presumably if I could get webuyanycar to give me the right price I can sell the Focus to them and settle the PCP myself?

Cheers for any advice anyone's got.

[Eric Bloodaxe]

A pal of mine has settled the finance on his last 3 cars (2 Fords, 1 Volvo) early - iirc he said it only took a couple of phone calls to request a settlement figure. In his case he wanted to keep the cars, not return them, he just did it to reduce the amount of interest payable.

You could do that and then sell the car, but I don't see why they wouldn't come up with a figure to hand the car back based on amount paid, residual value, condition/mileage etc.

I guess all you can do is ask.

Yeah, I've seen good reviews on the Scala - it seems to have a performance edge over a 182 Focus. Only downside I've seen mentioned is ride and handling compared to the Focus, but it had multi-!ink rear end at the time of the reviews and now it doesn't of course.

 

[alexp999]

You have to settle the PCP BEFORE you can sell the car. 
 

However you can ask any willing dealer to buy it off you. They just settle the finance and pay you the balance. 

[Guy Heaton]

Aye, a dealer might but a lease company won't.  So you don't think I can sell it via webuy?

[alexp999]

1 minute ago, Guy Heaton said:

Aye, a dealer might but a lease company won't.  So you don't think I can sell it via webuy?

You can’t sell it to them and then settle finance. Either you need to settle finance and then sell it. Or you need to ask them if they can settle finance and pay you difference like a dealer would. 
 

Plus you can sell to a dealer without buying anything. You won’t get as much as a part ex. But they can still buy it off you. My dad did this with a pcp fiesta. 

[Guy Heaton]

Yeah that would do,. I'm going to make enquiries.  I can't do a voluntary termination cos I haven't paid over half the outstanding balance, cos the balance includes the balloon payment.

[fiestaecoboostman]

I'm from the old school generation who has never done PCP / contract hire for a car, but being realistic my depreciation on my pride and joy was about £3k last year, I paid £18,800 and had a look at a PX price last week and it was valued at £15,500. I've had it 14 months. If you want to drive a new or nearly new motor you pay that kind of monthly money one way or another. Good luck with the PCP, keep us posted.

(The 1.0 Fiesta isn't my pride and joy 🙂 )

[TomsFocus]

Great, now I'm being targeted by Scala ads on every app I open...   I've been looking at the 1.4/1.5 150 TSI with DSG myself albeit in a different marque...have you driven one yet? Will probably end up with the 1.8/2.0 TSI if I can find one locally and in budget.

I get why you're doing it, but won't you lose a lot more money by giving it to someone like WBAC at trade price than just sticking with the current payments?  I've owned over 40 cars and never once part exchanged one so far as the prices have always been ridiculously low.  Private sale would be best, but there aren't many people that walk around with huge amounts of cash in their pockets so nearly new cars aren't easy to sell privately.

11 hours ago, fiestaecoboostman said:

I'm from the old school generation who has never done PCP / contract hire for a car, but being realistic my depreciation on my pride and joy was about £3k last year, I paid £18,800 and had a look at a PX price last week and it was valued at £15,500. I've had it 14 months. If you want to drive a new or nearly new motor you pay that kind of monthly money one way or another. Good luck with the PCP, keep us posted.

(The 1.0 Fiesta isn't my pride and joy 🙂 )

You should've checked the PX price on the day you bought it...assuming it was a dealer, you probably 'lost' over a grand just driving it off the forecourt.   I always check the PX price of any car I'm considering buying...it's a great way to put a downer on any car purchase.  

[Guy Heaton]

It's the first time we've done PCP, and it was made appealing because we can get Privilege discount via a nephew.  I liked the idea of a manufacturer warranty and changing the car before I had to buy a big service, tyres etc.

The issue really is that the idiots at Ford have deleted the 182 auto and not replaced it with anything comparable.  I'd happily have a midrange hybrid like the Corolla, 2.0 icon tech 250 a month for a similar spec lease  But Ford dont have a a car I want now.  Don't like SUVs and even if I did the Kuga is even more costly.  All I really want is to walk away from the PCP now, so I can be free to look elsewhere.

I know, 1st world problems and all.

[Eric Bloodaxe]

16 hours ago, alexp999 said:

Plus you can sell to a dealer without buying anything.

I've done this a few times over the years, generally to used car specialists, though have done it with main dealers also. Not actually done at all badly compared to p/ex or WBAC, it just takes a day or so of driving around various dealers. You can find, with the smaller traders in particular, that if they're not interested they'll put you onto someone they know who might be.

[Guy Heaton]

2 hours ago, Eric Bloodaxe said:

I've done this a few times over the years, generally to used car specialists, though have done it with main dealers also. Not actually done at all badly compared to p/ex or WBAC, it just takes a day or so of driving around various dealers. You can find, with the smaller traders in particular, that if they're not interested they'll put you onto someone they know who might be.

Ah I missed that in Alex's post.  I hadn't thought of that.

Looking on Autotrader, one of my spec and mileage is 20-21k.  My settlement figure is 16,967, so my car would be attractive to a dealer to buy?

[Eric Bloodaxe]

1 hour ago, Guy Heaton said:

My settlement figure is 16,967, so my car would be attractive to a dealer to buy?

I suppose in the end it all comes down to whether a particular dealer thinks he can shift a car quickly** and make a few quid out of it. I've had no particular difficulty finding takers for cars (including several Fords, a SEAT and a Land Rover (that went to a main dealer down South who were advertising for "cars wanted" in the national press at the time. Their roving buyer wrote me a cheque on the spot and drove the car away.) Once had a hell of a job shifting a SAAB though!

(** I usually keep an eye on what happens to the cars. Mostly they seem to move fairly quickly, but once, I sold a Focus to a local dealer for what I thought was an exceptionally good price. He put it up for sale with about £1,000 mark up, and it didn't shift. So I watched the price drop over about 2 months to below what he gave me for it. Then one day it was gone. I assumed he'd found a buyer, but about a week later another dealer was advertising it for an even lower price, so he'd obviously cut his losses and sold it into the trade. So dealers don't always get it right!).

I've got no feel for the market in the present situation, though. Normally I'm frequently wandering into the local dealerships to see what's what (usually to kill time while waiting for the Mrs!), but not done that since March.

 

[Guy Heaton]

Aye no wandering in these days, it's all appointment only.

[TomsFocus]

I just wandered into a forecourt last week....just wanted a look around but the salesmen immediately came out asking if he could help and kept pushing when I said 'just browsing'...  I got scared and left.

Viewings are appointment only but I'm sure you could wander in for a valuation.

[Eric Bloodaxe]

18 minutes ago, TomsFocus said:

Viewings are appointment only but I'm sure you could wander in for a valuation.

I'd be inclined to ring or email first anyway to avoid a wasted trip. Drove past my usual local Ford dealer this morning and there was more tape blocking access than a police murder scene! Checked their website and they are still "appointment only" for sales, service and parts though they have a facility to ask for a valuation via the website. Wouldn't be surprised if they just put the details in WBAC and give you whatever figure they come up with!😀

[The Finance Guy]

When it comes to early exit, PCP and leasing are notoriously challenging, and you will usually be penalised for settling early. HP is the way forward as far as I'm concerned as you actually get rewarded with interest rebates when settling early - I'm sure I've told the story here before about my pickup on HP with a balloon which I settled 14 months into a 36 month agreement and saved a few thousand quid. 

I can understand the allure of PCP and leasing for the low monthlies, but what most don't know is that HP can be structured with a balloon to the same effect. You've mentioned looking at lease deals, but can I just say please exercise caution and if you do go down that route then go as short a term as possible! Lease is the hardest to get out early from by far, and as you've seen from your PCP deal, your circumstances can change a lot in 36 months. 

Regarding selling the car while on finance, you can't exchange it with anyone while it is technically owned by the finance co. However it happens every day and you just need to make sure you go to a reputable trader who will settle your finance for you and do everything in the right order. They know what they're doing, they do it all the time. 

Back to the pickup mentioned above, I had £10,800 as my settlement. I went to WBAC and they gave me £13,700 for it and settled my finance directly. Very smooth and they give you all the necessary documentation to make sure you're not doing anything wrong. It sounds like you are being offered a favourable settlement figure right now and that's rare in PCP world, but I would look at how much you have left before you can do a Voluntary Termination. I only say that because I know from experience that pulling off a VT on a gouging PCP lender is eternally satisfying. They will try and fight you but they know that they absolutely cannot win (if you do it all right) and they're just hoping you back down and get scared. If you stand up for yourself then you can tell them to jog on and it feels great!

[Wino]

4 hours ago, Guy Heaton said:

Ah I missed that in Alex's post.  I hadn't thought of that.

Looking on Autotrader, one of my spec and mileage is 20-21k.  My settlement figure is 16,967, so my car would be attractive to a dealer to buy?

Just looked myself on auto trader and ours is retailing at roughly £19k give or take a few quid. Put the reg into WBAC and came back with a figure of just under £15k ........I think the Audi A3 saloon ive spotted might have to wait .......

[Guy Heaton]

Feck. No wonder these people make a fortune.  £16360 for mine.

[The Finance Guy]

Evans Halshaw reckon they buy cars and say they will beat WBAC on price? Might be worth asking. 
 

Also if you’re looking at replacing it, offer it as a trade in on the next and let them settle the finance on it. Just don’t tell them how much your settlement is until they hit you with a trade in figure. 

[TomsFocus]

1 hour ago, Eric Bloodaxe said:

...though they have a facility to ask for a valuation via the website. Wouldn't be surprised if they just put the details in WBAC and give you whatever figure they come up with!😀

If they're like my local, they won't even do that, despite filling in the form honestly and attaching several pictures.

It's just a ploy to get you there... 

'Thanks for the details, we'll need to see the car to make an accurate valuation, when can you come in?'

Ok, just give me the worst case valuation.

'Sorry, we can't do that, when can you come in?'

Nevermind...

 

I was planning to go and 'view' a car tomorrow at a local dealer, just externally for now, but I wonder if they'll all be taped off as well. 🤔 It's not actually a car I want, but is in the same spec and colour as the one I want at a further dealer within their network, which could be a little awkward to explain.

 

[Eric Bloodaxe]

2 minutes ago, TomsFocus said:

It's just a ploy to get you there... 

To be fair, the local Ford place are pretty good and probably wouldn't do that. I have had that experience elsewhere though, sent all the details, made an appointment, and when I got there the guy I was supposed to see was on a day off and no-one else showed the slightest interest in my car, or selling me another one. Needless to say, they are now on my blacklist!😀

 

[TomsFocus]

I've never been successful with part ex prices...  

Spent a good 20 minutes with a Toyota dealer winding me up about 8 years ago.  I just asked for a simple part ex valuation and they wouldn't give it - I was intending to buy a £6k Aygo at the time, not something I actually wanted, was purely to save running costs.

First I needed to pick a specific car.

Then they had a look around mine picking up every ding. (Which I then intended to do with the purchasing car if we got that far!)

Then asked how much I wanted for it!

'I want as much as I can get, hence asking for a valuation.  How much can you give?'

No, you need to give us a price first.

'Youre wasting both our time here'

This is the last question, I promise.

'Fine.  As close to £3,000 as possible, that's what they're going for privately.'

Oh, that's an awful lot, where did you get that figure?

'eBay, Gumtree, Autotrader...that's the private sale figure, I'm not looking for that, just as close to that possible'

We can't do anywhere near that.  Maximum we can offer is £1,600.

'Why didn't you just tell me that 15 minutes ago then?  Save wasting both our lives here'

'You could try WBAC?  Then you can come back to us with cash to buy the car'

'So you're not even offering WBAC prices?  Who falls for this!?'

*Awkward silence*

 

I haven't been back since...

The other one I hate is walking in and specifically asking for a valuation...

'Oh, I'm sure we can sort something out'

Well I need to know it's value to work out my total budget...

'We can offer finance if you need it'

No thanks, just a valuation on mine

'What sort of thing are you interested in, how about this...?

 

I know I can be annoying, but honestly, just give us a valuation without all the BS!!

[fiestaecoboostman]

22 hours ago, TomsFocus said:

You should've checked the PX price on the day you bought it...assuming it was a dealer, you probably 'lost' over a grand just driving it off the forecourt.   I always check the PX price of any car I'm considering buying...it's a great way to put a downer on any car purchase.  

It was the best buy across the UK on Autotrader, 6 months old, 6k miles and about £7k lower than the price new. When I tried to negotiate the salesman showed me the online valuation and the trade in value was £19,250. I'd almost purchased the same model for £21k locally from a main dealer. I've bought cars brand new before (only 3 times so I'm not an expert) but the depreciation from new hurts. I'd love a car brand new again in some ways, but there's other things you can do with the money you lose in years 1-3 that I find hard to justify. I supose in some ways a lifetime of careful budgeting and spending is hard to kick later even if your financial position improves. I did look at the lease / pcp stuff but if I keep this a few years I'm better off buying outright. That's what I thought at the time, but I'm still tempted occasionally ...