Returning to finance after PCP

[Zippy321]

I have had an MG5 Exclusive since 2021. Enjoyed it, she drove smoothly and reliably, kept mileage low at 26,000 and saved a fortune on fuel with my solar panels, but unfortunately have to hand it back as my PCP ends; it’s value is now about 2k less than the balloon payment. They want 10,400 but it’s worth about 7/8k.

I would like to know what the handback process was like? I’m well aware of the wear and tear guide but want to know have they been extremely picky, do they nitpick the small stuff, was it a simple process or did it cause you grief? Do they inspect it at handover or back at their auction house?

Thanks in advance

 

[Jomarkh]

Have you asked them to check the price of the car to see if they can reduce the balloon payment? Worth a go.

 

[EVsince2016]

My PCP ends soon and I am keeping it, the MG5 LR Exclusive that is.

Yes, the paper value is less than the balloon payment but . . . .

I've added tinted windows, Tesla upgrade, frunk, a dent, a few scrapes and am well over mileage!

Also, the cost of a new PCP or hassle of a 2nd hand EV isn't worth the hassle.

 

[Data]

For me it wouldn't matter if the value of the car is a bit less than the balloon payment. For me a couple of grand isn't too much of an issue. If that does turn out to be the case I'd certainly try to negotiate with my lender to see if there was any leeway to get the balloon payment down, but I won't cry over it. I bought my new ZS EV on a PCP over 3yrs as couldn't get my cash out of my bonds quick enough to pay cash & get the deal. However my PCP is remarkable value with low...ish interest & very low monthly payments. May pay it off early, but maybe not!

We bought the car to keep. So depreciation is much less of an issue as cars tend to stabilise in price as the years go by. I recognise it can be different for everyone. Not everyone thinks the same.