Coming to the end of a PCP agreement and want a new car

Use your savings as I assume you are getting very little return at the moment. Do you really need a new car ? Your current car is only 3 years old and unless you have a very good reason for wanting a new one I would think it is a waste of money as new cars depreciate so quickly.

You should probably do a full moneymakeover thread.

From your other posts, it seems that you have a cheap tracker and a Credit Union loan on which you missed a few payments.

It's a matter of priorities, but I don't think one should buy a new car unless one is buying it for cash and has no other loans.

If you make do with a 3 year old car, pay off your credit union loans and build up savings, you will find yourself experiencing financial freedom. The freedom to trade up your home if you want to. The freedom to take time off work.

But if you prioritise having a shiny new car instead of a shiny 3 year old car, that is your choice.

I haven't looked at the options on maturing of a PCP.

Can you set out the options for us?

My gut feeling is that the best option is to pay the GMTV and sell the car for cash. Then look at a new PCP deal if you are sure that you will have the cash for the GMTV in three years.

Brendan

Fiddlybits said:

I want a new car and will probably stay with the same make and model.

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Is there a particular reason why you want the new (shiny as Brendan says) car like enhanced features etcetc
If it was me, pay for the car in full and use it for the foreseeable future and save for other things or maybe buy a new car outright in 5 years time

Thanks Feemar and Brendan for the input. My options are (1) hand back the car and walk away”literally”
(2) Upgrade to a new 191 model with same pcp monthly payment and balloon payment at end of 3 years- not sure how much that would be exactly as I haven’t gone to the garage to discuss as yet.
(3)Pay the 10000 and drive away debt free!

With regard to Credit Union debt I have paid this off.
Tracker loan is very manageable.
No desire to move house.

I agree that selling the car for cash is a great option but am put off by the “Done Deal” etc avenues of sale.

Fiddlybits said:

Thanks Feemar and Brendan for the input. My options are (1) hand back the car and walk away”literally”
(2) Upgrade to a new 191 model with same pcp monthly payment and balloon payment at end of 3 years- not sure how much that would be exactly as I haven’t gone to the garage to discuss as yet.
(3)Pay the 10000 and drive away debt free!

With regard to Credit Union debt I have paid this off.
Tracker loan is very manageable.
No desire to move house.

I agree that selling the car for cash is a great option but am put off by the “Done Deal” etc avenues of sale.

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if you have equity in it walking away isnt sensible

Fiddlybits said:

My options are (1) hand back the car and walk away”literally”

(3)Pay the 10000 and drive away debt free!

Click to expand...

How much is your car worth today?

I presume it's worth more than €10,000?

If so, you should definitely not walk away.

Brendan

Well if you want a new car, talk to the garage, and see what the car is worth if you are trading it in. The 10k is the minimum guaranteed.

I agree regarding Done Deal, I prefer Adverts and recommend if you get to that point to advertise there and deal with people that have built up positive feedback based on others interactions with them.

Talk to another branch and see what's the best deal you could get as a cash buyer on the model you're interested in.

Next, talk to the garage you have the PCP with, it is very likely that they will offer you a significant discount on rolling over to a new PCP deal based on the condition/ value of the car. They may value you're car at €14k, giving you an effective €4k discount on the new car after deducting the €10k owed on the existing one. If you can still get 0%, then this will most likely beat alternative financing options.

So knowing what you might get selling privately you can decide which is the best approach.