You can either sell the car back to the dealer and pocket the difference between the current value of the vehicle and the settlement figure, or pay the settlement figure yourself and own the vehicle outright. The dealer will be able to help with financing this if you like.
Alternatively, you can renew into a new Ford vehicle, or another used vehicle - this is what the sales person will want because that’s how they get paid.
You can hand back the vehicle to Ford Credit, but it’s likely the vehicle is worth more than the settlement so this isn’t a good option I don’t think.
You don't have to sell the car to the dealer.
You can also sell it to WeBuyAnyCar, Motorway, Evans Halshaw, etc., who may give you more than the dealer you choose to go to. Get multiple prices before deciding.
(Yes, you can't sell a car you don't own, but you can get someone else to pay off your finance when selling it to them, and you pocket the difference that way).
(In addition, you could get a personal loan to settle the outstanding finance, if you prefer to keep the car).
I sold my Fiesta a year ago as it was worth about £5K more than it should have been worth due to COVID disrupting the supply of new cars. I sold it and bought a very cheap Honda. I thought I'd miss all the tech on the Fiesta but I don't at all. I bought a Pioneer head unit from eBay for £100 less than retail, it has Android Auto and reversing camera. My take on new cars now is totally changed. I am happy to run this 14 year old car for as long as possible. I own my house no mortgage don't care what people think about the car I drive. It feels like freedom to be honest :) Maybe not from car repair bills but that's the risk I'm taking for a car that is 1/8th of the price I sold my Fiesta for.
Anyway each to their own. I don't care what car anybody else has that's their business. I'm happy with the decision I've made so far.
Side question mate, what do you reckon about those Pioneer type units? I’ve got an old MINI too and one of the main reasons for me to get a new car would be to have Apple CarPlay and a reversing camera to help parking.
1) How are they Vs a car that comes with them installed?
2) Can they be removed easily so they don’t get nicked when I’m away from the car?
1. Mine works perfectly with Android Auto. DAB is rubbish, you need a proper aerial installed. I used a booster on the existing serial and set the antenna power to high and it's still rubbish. However I use RadioPlayer app on Android Auto for any stations I can't get on FM.
2. Definitely not, a thief might know how to steal it but no you're not going to be removing it when you're away from the car at all.
I plan on getting an Android Box which connects WiFi to my phone and to the USB connector coming out of the radio which is how I connect my phone then I can play videos YouTube etc but that's for another day. Alternatively if it doesn't have wireless Android Auto / Apple Carplay you can buy 3rd party adapters that connect to the USB port and facilitate wireless you your phone. I don't have one as I plan to add extra features by buying a standalone Android Box that connects to the USB. I could have bought a Chinese head unit and had it all in one but the Pioneer is a quality product that works and doesn't give me any issues.
That sounds like exactly what I've been looking for. What reversing camera did you go for if you don't mind me asking? Have you found it works quite well?
I haven't fitted the camera yet however Pioneer make one the Pioneer ND-BC8 but I ordered another as the Pioneer one is quite expensive. I bought a Parkvision camera but as it's not fitted yet I can't comment on how it performs.
They will do their best to talk you into trading up to an even more expensive car with even more debt. You should probably decide in advance whether you want to be stuck in that debt loop, or get out of it. Obviously, getting out of it makes far more sense from the financial point of view.
Just in case you don’t know…the finance company will try to take the balloon payment by direct debit as the final payment. So make sure it’s paid off, swapped for a new/used car or you have the money available to be taken before the DD fails.
Just recently done this - had a diesel Passat estate, but wasn’t doing the mileage any more. Went to dealer, offered me 5k above GFV 2 months before end of PCP. A competing dealer offered me 6k above GFV… Wanted a Petrol Tiguan but rather than take out a new PCP, I took out a bank loan at 2.8% for the remainder of the Tiguan price (minus 6k equity on Passat which I used as deposit).
End result better, newer car and saving £20 in monthly payments. Plus I know I’m on way to settling the car without having to refinance a balloon payment in a few years. And at 2.8%, it’s much cheaper than a new PCP.
(My thinking here is this will be my last petrol / diesel probably and hold on as a long as possible to jump onto EV or whatever is round the corner - let the technology develop further over the next few years).
Good luck whatever you do :-)
Thanks all for the comments. My plan is to get a new car but not pay for 18000 miles a year like we did. I do 8000 max now. So where we were paying £220 a month I’m hoping this will come down a bit and we get a new car.
My car was due back from PCP last month. It was worth more than the final balance by about 50%. Plus to buy the same car as I had, inc age 3 years ago today, I’d be paying much the same money again on PCP.
I contacted the lender and offered stupid terms. Went to the bank, took out a loan and kept the car.
You can either sell the car back to the dealer and pocket the difference between the current value of the vehicle and the settlement figure, or pay the settlement figure yourself and own the vehicle outright. The dealer will be able to help with financing this if you like. Alternatively, you can renew into a new Ford vehicle, or another used vehicle - this is what the sales person will want because that’s how they get paid. You can hand back the vehicle to Ford Credit, but it’s likely the vehicle is worth more than the settlement so this isn’t a good option I don’t think.
!thankyou
You don't have to sell the car to the dealer. You can also sell it to WeBuyAnyCar, Motorway, Evans Halshaw, etc., who may give you more than the dealer you choose to go to. Get multiple prices before deciding. (Yes, you can't sell a car you don't own, but you can get someone else to pay off your finance when selling it to them, and you pocket the difference that way). (In addition, you could get a personal loan to settle the outstanding finance, if you prefer to keep the car).
Just a note that we went down the WBAC route and got a bloody great price and zero hassle. Well worth it
I sold my Fiesta a year ago as it was worth about £5K more than it should have been worth due to COVID disrupting the supply of new cars. I sold it and bought a very cheap Honda. I thought I'd miss all the tech on the Fiesta but I don't at all. I bought a Pioneer head unit from eBay for £100 less than retail, it has Android Auto and reversing camera. My take on new cars now is totally changed. I am happy to run this 14 year old car for as long as possible. I own my house no mortgage don't care what people think about the car I drive. It feels like freedom to be honest :) Maybe not from car repair bills but that's the risk I'm taking for a car that is 1/8th of the price I sold my Fiesta for. Anyway each to their own. I don't care what car anybody else has that's their business. I'm happy with the decision I've made so far.
Side question mate, what do you reckon about those Pioneer type units? I’ve got an old MINI too and one of the main reasons for me to get a new car would be to have Apple CarPlay and a reversing camera to help parking. 1) How are they Vs a car that comes with them installed? 2) Can they be removed easily so they don’t get nicked when I’m away from the car?
1. Mine works perfectly with Android Auto. DAB is rubbish, you need a proper aerial installed. I used a booster on the existing serial and set the antenna power to high and it's still rubbish. However I use RadioPlayer app on Android Auto for any stations I can't get on FM. 2. Definitely not, a thief might know how to steal it but no you're not going to be removing it when you're away from the car at all. I plan on getting an Android Box which connects WiFi to my phone and to the USB connector coming out of the radio which is how I connect my phone then I can play videos YouTube etc but that's for another day. Alternatively if it doesn't have wireless Android Auto / Apple Carplay you can buy 3rd party adapters that connect to the USB port and facilitate wireless you your phone. I don't have one as I plan to add extra features by buying a standalone Android Box that connects to the USB. I could have bought a Chinese head unit and had it all in one but the Pioneer is a quality product that works and doesn't give me any issues.
That sounds like exactly what I've been looking for. What reversing camera did you go for if you don't mind me asking? Have you found it works quite well?
I haven't fitted the camera yet however Pioneer make one the Pioneer ND-BC8 but I ordered another as the Pioneer one is quite expensive. I bought a Parkvision camera but as it's not fitted yet I can't comment on how it performs.
Some info here https://www.reddit.com/r/AskUK/comments/gn6xsv/car_pcp_ending_what_did_you_all_do_car_sales/
They will do their best to talk you into trading up to an even more expensive car with even more debt. You should probably decide in advance whether you want to be stuck in that debt loop, or get out of it. Obviously, getting out of it makes far more sense from the financial point of view.
Just in case you don’t know…the finance company will try to take the balloon payment by direct debit as the final payment. So make sure it’s paid off, swapped for a new/used car or you have the money available to be taken before the DD fails.
Thank you. The deal isn’t up until march so hopefully we’re going to get another one, that’s cheaper!
Just recently done this - had a diesel Passat estate, but wasn’t doing the mileage any more. Went to dealer, offered me 5k above GFV 2 months before end of PCP. A competing dealer offered me 6k above GFV… Wanted a Petrol Tiguan but rather than take out a new PCP, I took out a bank loan at 2.8% for the remainder of the Tiguan price (minus 6k equity on Passat which I used as deposit). End result better, newer car and saving £20 in monthly payments. Plus I know I’m on way to settling the car without having to refinance a balloon payment in a few years. And at 2.8%, it’s much cheaper than a new PCP. (My thinking here is this will be my last petrol / diesel probably and hold on as a long as possible to jump onto EV or whatever is round the corner - let the technology develop further over the next few years). Good luck whatever you do :-)
Thanks all for the comments. My plan is to get a new car but not pay for 18000 miles a year like we did. I do 8000 max now. So where we were paying £220 a month I’m hoping this will come down a bit and we get a new car.
My car was due back from PCP last month. It was worth more than the final balance by about 50%. Plus to buy the same car as I had, inc age 3 years ago today, I’d be paying much the same money again on PCP. I contacted the lender and offered stupid terms. Went to the bank, took out a loan and kept the car.