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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To ask your advice on my pcp car

56 replies

Fedupmum13 · 04/08/2021 08:50

Hope this is OK to post here, just thought I'd be more likely to get a response.
Have a pcp car coming to the end of the 4 years and a 6000 balloon payment due in November.
My options are to pay my balloon payment and keep the car (its got 60k miles - giving back isn't an option). Or take out another pcp for £250 a month (currently pay 290 a month). Dealer says I have a little positive equity in the car at the moment. Needs a service and mot this month, hence why I'm thinking of the options now.
I could, pay it off and it's mine, but I'm worried about the ever increasing mileage and things going wrong. Or take out a new pcp on a brand new car with 3 years servicing /warranty but means I start the cycle again.
I have a Renault captur at the moment and it's always been a great car for me. I could trade in for a new dacia duster.
Would be interested in thoughts, really don't know which to choose!
Thank you.
Voting:
YABU: Pay the balloon payment
YANBU: Take out another pcp

OP posts:

monkeysox · 04/08/2021 08:55

Neither. Give the car back. Get a bank loan and buy a car that is two or three years old. Much cheaper % and you own the car at the end of the term.

19lottie82 · 04/08/2021 08:58

No one can advise you here. There is no right or wrong answer. You need to look at the pros and cons of each option and decide what’s best for you.

Original poster

Fedupmum13 · 04/08/2021 08:58

Can't t give car back as have done too many miles sadly

OP posts:

CruelAndUnusualParenting · 04/08/2021 09:00

60k miles isn't that much on a modern car. My last car I bought with 45K on the clock and ran to 145k. I could have kept it another year or two, but my wife wanted a change. If you go for another PCP you will be spending several thousand a year on it, which would cover any likely maintenance costs with money to spare.

TakeYourFinalPosition · 04/08/2021 09:00

Are you so far over the mileage allowance that giving it back is actually not an option; or are you just at the fines level?

If that’s not on the table at all, you’re going to lose our a bit either way, I think.

Jubaju · 04/08/2021 09:00

Agree with monkey. Low apr % and better car than a duster
If you pay the balloon you’ll have paid nearly 20k for a captur.

lemonyfox · 04/08/2021 09:01

Surely you can give it back but it'll cost you? I thought there was a pence per mile over the annual agreed mileage limit. It'll be in your original contract. The dealership will take it back and then sell it on themselves.

KeyWorker · 04/08/2021 09:01

Is there not an option to pay for the extra miles? Also, we went over our mileage last time but weren’t charged because we gave the car back and used the same dealer/finance company for PCP on our next car.

spinningspaniels · 04/08/2021 09:02

We've had cars on PCP for the last 10 years or so. Brand new cars and with a service/tyre package on top so other than fuel and insurance there are no other costs.

MN is very funny about PCP, but for us it's been brilliant. After DH owned a VW Golf that spent more time in the garage looking for an intermittent fault than on the road, we'd never go back to owning a car.

FayeFayeFayeFayeFaye · 04/08/2021 09:03

If it were me I would get a new car. Or give it back entirely. But then you would have to shell out again.

We have a kadjar which is the bigger version of the captur and love it!

BernadetteRostankowskiWolowitz · 04/08/2021 09:04

How much would it cost you to give it back?

I remember a friend of mine getting busses and taxis everywhere for the last two months of her pcp as she had hit the max mileage. What an silly arrangement it all is.

CliffordMystery · 04/08/2021 09:07

I don’t understand how you can have some positive equity in the car, but not be able to give it back? That doesn’t make sense. When they calculate any equity they take the mileage into account.

BillMasen · 04/08/2021 09:08

Not to be rude but this is what happens when you state a low mileage to keep the monthly cost down but do more.

PCP can be fine but can be a trap

You’ve underpaid for 4 years based on a low image, and fundamentally because pcp defers a chunk of the cost (the balloon). It’s a buy now pay later scheme

I think you have to suck up a cost to get out tbh

CliffordMystery · 04/08/2021 09:09

What was your annual mileage supposed to be? Next time you get a pcp just make sure you’re more realistic about the mileage you’re likely to do and then it won’t be a problem.

Confiscatedpopit · 04/08/2021 09:11

Get another PCP. Cars 60+ are going to cost.

Original poster

Fedupmum13 · 04/08/2021 09:18

To be honest I stated 12k a year, we had to do a lot of long distance trips due to dps mum being terminally ill (600 round trip)

OP posts:

Laufeythejust · 04/08/2021 09:18

I would get another PCP. With the mileage you do you want a reliable car- 60k mileage and 3 years old, you’ll get another few years but things will start to need replacing.

HeyDemonsItsYaGirl · 04/08/2021 09:20

How much would the mileage fine be?

Touloser · 04/08/2021 09:21

The used car market is a bit strange right now - look online for your age/trim level; certain capturs are selling used for £8-10k at around that mileage. It may be worth paying the 6k to buy it, selling it or trading it in on your next purchase.

A friend recently did the same and as soon as the car was signed over to him he sold it to we buy any car for 2k more than he's just paid the lease company.

Fetasalad · 04/08/2021 09:26

My DH had a car on pcp, we were going to exchange it for another but the guy at the showroom pissed me off so we took out a 3 year loan on a low apr and paid the balloon payment. We paid that off a few years ago so it now costs nothing. When we paid it off we took out another loan for 4 years and got me a newish car. I won't fall into the pcp trap again.

spinningspaniels · 04/08/2021 09:27

We've gone over the mileage every time. They add 6p or 8p a mile or something stupid when you hand it over. No need to not use the car!!

BootsScootsAndToots · 04/08/2021 09:28

It's like renting really. If you're happy with never owning, and paying out for, an asset then trade it in for a new one and start the cycle again.

If you add up your monthly payments plus the balloon cost, was it financially beneficial? How many new tyres, out-of-the-box cost etc do you usually get on a new car under warranty??

But if you like always having the latest whatever, then it's for you!

DynamoKev · 04/08/2021 09:32

@Confiscatedpopit

Get another PCP. Cars 60+ are going to cost.

Unhelpful nonsense and ignores the stated options from the OP.

DynamoKev · 04/08/2021 09:34

OP you seem to be saying your 2 options are -
Pay the Baloon payment
or
A further PCP (if I have understood correctly, on the current car?)

It's hard to know without seeing what the new PCP would look like (costs, terms, miles etc).

BernadetteRostankowskiWolowitz · 04/08/2021 09:34

So 12k miles over the contracted amount. If its 8p a mile as quoted above, it will cost you £980 to get out of it

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