Downsizing when 6 months into a 4 year PCP

ChuckMountain

I guess it will depend on the need for a car, which I will assume will be the case.  

If you add the negative equity settlement to any other gaps you might will end up with a reasonablely large loan amount each month.  You still need to allow for transport then.

m1stergeorge

Bang on..  I've found out that the settlement is a shade over £30k and second hand sales of the same car around the £25-28k mark.  Turned out to be quite simple to get the settlement figure though, it was all automated on the Audi finance number.  I need to wait till Monday to speak to anyone though as the offices were closed.

ChuckMountain

What does Webuyany give for the car price as you won't get the retail value of the car either.  That at least gives you a worst case scenario figure.

m1stergeorge

Wow...  £20,425

ChuckMountain

And that's before they go round and kick the tyres and find any minor issues and reduce the price further

Hopefully you would be able to get a better price but its like to be 1 few k more nothing like the retail value.  So if that was 22-24k then you would be 6-8k in negative equity

m1stergeorge

As a follow up to this.. the finance company said they were not in a position to help in any way.  So being proactive got me nowhere it seems.

ChuckMountain

That's not good is but I suppose they can just stand by the terms of the agreement.  

In which case if you can get to the 50% VT then give it back is probably your best option that will have no issues on your credit history.  If you do then so long as its in reasonable condition for the age then make sure you don't pay them any more money for minor issues or going over the mileage limit.  They will try it on and ask for some if there are any minor issues or your mileage but stand you ground and tell them politely to read their own terms.  Two can play that game ....

m1stergeorge

Thanks man.. to get to that figure though, I need to pull about £10k from somewhere.

Arcam_boy

Evening,

Surely the finance company has some duty of care to help you out - as you’ve unfortunately found out we can’t predict the future and things do happen like divorce/job loss etc etc.

If the finance company won’t help and Audi also refuse to help then I’d personally cut all my loses and just take the car to the dealership hand the keys to someone and stop paying for the car.
Obviously it isn’t going to help your credit rating and may get a little messy but ultimately if it’s the choice between that and keeping a roof over your head then I’d take that route all day long! The trouble with PCP is you need to be a good old way through (at least half way) before you can look at terminating/swapping car and after 6 months you’ll be miles off even breaking even unless you left a sizeable deposit.

ChuckMountain

If it was that easy

Audi Retail have no ownership of the car therefore you wouldn't be able to leave it with them.

Audi Finance are the owners of the car and the contract that was signed leaves the OP liable for an amount.  They reserve the right to recover various monies from you in the contract.