Hello — I have a PCP (which I extended for 4 months because of the terrible virus) — it will end at the end of September — as a result of the extension, I will have paid a lot more on the plan. in fact, I will have a „balloon“ of 16,143; and have just had an evaluation of just under 18,000 of `webuyanycar` site. I`m going back to Australia in October, so I don`t need it; Do I have to buy it from the financial company and then sell it on the website – or will the difference in these figures be refunded to me by the financiers? Partly due to the low mileage…. Thanks to Dave. If you return the car to the financial company at the end of the agreement, you cannot claim equity that goes beyond the balloon figure — you simply return the car instead of paying the last payment. In this case, getting in your car is a bad step. If no one will buy your car for the value of the optional final payment, then you should pay the difference between what you could sell the car for and the remaining financing balance to ensure that the lender is paid enough to settle the deal. It`s the same story if you act in a car at the end of a PCP deal, but there`s an extra step because you don`t own the car. The PCP is one of the least flexible forms of automotive financing. Since refunds are set for the duration of the agreement, you generally cannot increase your repayments every month if you want to extend the life and, if you wish to extend the duration of the agreement, you can charge a rescheduling fee. There may also be other restrictions, such as. B exceeding a certain mileage limit and obligations regarding the wear and maintenance of the car that you must accept.
You need to take a look at your contractual terms so that you know what you are charged if you exceed the mileage limits. To get a realistic estimate of your mileage, check your service statements, or you can write them with your mileage meter. Hello tomorrow, I just made my car week before the end of the agreement, due to financial constraints and to my surprise the financial company, tried to take the PCP fees from my account when this agreement was accepted It was never explained to me about the PCP and neither was there a balloon payment , the deal was made by a friend who works for the dealership I Who told me he could make me a cheap. And now I`ve learned all that. I would appreciate it if you would be happy to tell you what options are available, thanks to PCP financing agreements, you can make an optional final payment at the end of the contract (also known as Future Guarantee Value (GFV) or Balloon Payment) to take possession of the property. Pay this and the car is all you have. As a credit broker, we work with a number of financial companies and each company will use its own approach for a contract lease.