FINANCE & PCP - Available at Sandy Thain

Sandy Thain Car Sales offer you a wide array of funding options to make buying your next car as affordable as possible.

We work closely with some of the biggest names to ensure you get the best possible deal.

DO YOU HAVE A PCP ON YOUR CAR ?

Did you know that you can change your car before the PCP ends & that we can take your car as a trade in during or at the end of your PCP ? If this is the case then give us a call to find out more.

What are my options at the end of the PCP term?

So you have reached the end of your PCP agreement and the finance company has written to you to remind you that you will have to settle the outstanding balance fairly soon. What are your choices? Well, in no particular order:

1) Give the car back. The finance company has guaranteed that the value of the car will be equal to the balance outstanding, so you can simply just give it back and walk away. This is subject to a few conditions, namely; the car must have not exceeded its agreed mileage, it must have been serviced on time (and usually by the manufacturer), and there must be no repairs required beyond normal fair wear and tear. If your car does not meet the conditions, there will be financial penalties. Effectively, your PCP has been like a lease.

2) Pay the outstanding balance, either in cash or by re-financing. You keep your current car and either own it outright or continue to pay off the remaining balance until it is all yours. Effectively, you are turning your PCP into an HP.

3) Part-exchange your car on another one. It doesn’t have to be from the same manufacturer or dealer. The dealer when you buy your next car will settle your current finance. If your car is worth more than the GMFV, then any of that extra (called equity) is yours to use as deposit towards your next car. Say you are offered £12,000 for your car, but your GMFV is £10,000. The dealer will pay £10,000 to settle your finance and the remaining £2,000 is yours to put towards your new car. This is the most common way to settle your PCP, and it is why dealers and manufacturers love it.

Can I settle my PCP early?

Yes you can, but the important thing you need to remember is that the finance company does not guarantee the value of the car against your settlement until the conclusion of the agreement. For example, if you want or need to sell your car two years into a four-year agreement, you will have to pay any difference between what your car is worth and what you still owe (called negative equity). So if your car is worth £20,000 but your finance settlement figure is £22,000, then you will have to pay the extra £2,000 to clear your negative equity.