PCP equity at end of term?

banie01

Hello all.

My current PCP ends next year.
I'm in the position where due to an ongoing health issue, I've been awarded a Free Travel pass and live in a city so the majority of my local travel is bus accessible.

I'm not driving enough at the moment or in the likely foreseeable to warrant the need for our family to have 2 cars.
I've only done 16k Kms in the car over the last 2yrs, versus over 30k km in the previous 2yrs.

Would I be mad to think that I could combine the equity left over in my PCP, with trading in my Wife's 151 come the end of my term?

Or is it a case of just suck it up and bare the loss of my equity?

Heres Johnny

Can't see why not but trading in 2 newish cars will probably cover cost of any new car unless you move up classes substantially.

banie01

Heres Johnny wrote: »

Can't see why not but trading in 2 newish cars will probably cover cost of any new car unless you move up classes substantially.

Thanks Johnny.
Well putting her in a new car in same class at minimal cost would be the aim

I'm sure she'd like to move to a mini SUV style tho so I'd hope it could at least make a big impact to any cost to change.

Wildly Boaring

Wife's car paid for?
Expecting much "equity" in yours? ie Have you much more than GMFV put in?

banie01

Wildly Boaring wrote: »

Wife's car paid for?
Expecting much "equity" in yours? ie Have you much more than GMFV put in?

Yeah Wife's car owned outright 151, my equity is expected to be @3k above GMFV.
How much of that I'd expect to remain is anyone's guess.

It wasn't really an issue for me when I was rolling over the PCP, but now I'm in a position where it's pretty pointless me keeping a car as we don't need 2 on the road anymore.

banie01

Giving this a bit more thought and I might look into rolling the wife's car and mine into a new car in the next month.

My best bet to maintain any benefit of the money in my PCP seems to be upgrade the car now, rather than end of term and then I can use any equity I might have along with getting decent value on the wife's car to bring her up to her preferred new car.

Wildly Boaring

I'd also be factoring in that it's just cheaper in general to run 1 car. A year less of running 2 is surely worth a grand

banie01

Wildly Boaring wrote: »

I'd also be factoring in that it's just cheaper in general to run 1 car. A year less of running 2 is surely worth a grand

That's already been included in my calc

Currently paying 2 insurance and 2 road tax.

With no need for the second car including fuel, tax, ins and PCP costs I will be saving @5k a year minimum.

Ideally if I could hand the car back now I would, even tho it's a year early.
Looks as if I can't, and IMO our best option is to try and find some way to roll over the PCP and maximise whatever we can from the trade in of the wife's car.

I'm going to explore maybe trading in both and moving to HP to cover the remaining balance rather than rolling a new PCP.

Wildly Boaring

Or chance putting hers on donedeal and see if you get any offers.

Pay your PCP till next year and use the cash to pay gmfv

banie01

Just on this RCI got back to me today and confirmed I could surrender back to them on a voluntary surrender basis.
Current month payment and a documentation charge due, but can hand the car back for less than €500 with no negative impact to my credit report.
Good outcome IMHO.

Lantus

Given your specific circumstances that seems like a good outcome. Make sure your a named driver on the wife's car or else you will lose your insurance history and be reset to zero for ncb. Your situation may require a car in the future so best to keep options open.

Wildly Boaring

Fair of them.

It'll have been a dear car for the 2 years but solution still might suit you.

I'd try calling into dealership with both cars and see what they'll do on a new car. No harm in asking. Shot to nothing

mickdw

Hold on. Don't be running to throw your car away. You say you expect 3k equity yet are now happy to give it away and throw 500 more after it.
If you want to get a new car for wife, go to dealer and explain the situation - depending on what you have, they might do a reasonable deal in taking both cars.

banie01

mickdw wrote: »

Hold on. Don't be running to throw your car away. You say you expect 3k equity yet are now happy to give it away and throw 500 more after it.
If you want to get a new car for wife, go to dealer and explain the situation - depending on what you have, they might do a reasonable deal in taking both cars.

Wife is happy enough to keep her car because she loves it.
I'm in a situation where my car is doing not a whole lot of driving but costing me money anyway.
I'm leaning towards letting it go back and not being hit on my credit report as a win.
I'm not likely to be driving much in the near term and her car is inviolable

The equity hit, it's a pain but it's already carried me through 2 rollovers so I'm trying to convince myself to suck it up as depreciation.
I'd love to swing a change.
My better half however has had her say on that matter, and I've learnt to pick my battles.

mickdw

Ok, if you are not changing the other car, I can see your point.
I must have missed that bit as I thought you were changing her car.

banie01

mickdw wrote: »

Ok, if you are not changing the other car, I can see your point.
I must have missed that bit as I thought you were changing her car.

That was my original plan Mick.
Use hers as a trade in and roll my equity over to a HP.
But my plan encountered the wife and failed there

Thanks to all here for the advice and input tho.