Can I refinance my PCP car?

[Mudball]

Looking to cut costs. Currently have a 2.5 yr car that I bought from the dealer along with 4 year PCP finance. Got another 18 odd month to go. I can’t remember but the interest rate is something like 5%.
Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

 

[Jamesbrown]

I think you can voluntary terminate your contract providing you’ve paid more than half including interest. I knew you could on HP.
Then get a cheaper model or a £500 run about.

 

[Bunkermagnet]

Best people to ask is the PCP company.
I would imagine you should be able to have the current deal cancelled and be able to refinance the remaining costs, but inly they would be able to say if you can and how.

 

[jim8flog]

RTFM

 

[Wolf]

Generally speaking you can refinance at the end of your agreement for the balloon Payment which is fine as more of a standard HP where you just pay until you own outright.

It's something my Mrs has recently done as she wants to keep her car and the upgrade option is no different to what she has. Speak to the finance company directly that your agreement is with and they will walk through the options with you.

 

[Piece]

Looking to cut costs. Currently have a 2.5 yr car that I bought from the dealer along with 4 year PCP finance. Got another 18 odd month to go. I can’t remember but the interest rate is something like 5%.
Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

One option. Have a look in fine print about Termination in your PCP/Finance contract. They should have something like you can terminate the PCP contract if you've paid 50% of the Total Payable, plus any admin & repair costs, if needed. Of course, you lose the car, but you're free to start another PCP. Here's an example:

Cash price you agreed: £15k
Deposit by you: £2k
Credit for PCP: £13k
Interest on credit (e.g.): £3k
Total Payable: £15k + £3k = £18k
Termination level = 50% of £18k => £9k

Therefore you need to get to paying them £9k total before you return car, then walk away. You've already paid £2k as a deposit, so the monthly payments you've done already need to reach £7k. If monthly payments are £200, then that will take 35 months to get to £7k, just shy of three years. You're not far off that? If you want to terminate now after 2.5 years, that is 30 months, so that is £6k you paid monthly on total, £1k shy of what you need. Factor in admin or repair costs they may charge.

You don't get anything back btw doing this; no deposit return, nothing. You need to factor that in when doing another PCP.

This is an example based on my PCP T&Cs we have.

 

[Smiffy]

Looking to cut costs. Currently have a 2.5 yr car that I bought from the dealer along with 4 year PCP finance. Got another 18 odd month to go. I can’t remember but the interest rate is something like 5%.
Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

Nope. PCP stands for Personal Contract Purchase.
Unfortunately, you are in a contract.
Only way out is to hand the car back (if you've paid enough) or settle the finance completely by trading in and starting again with a new car. But with 18 monthly payments to go, PLUS your balloon payment, you are likely to be in negative equity.

 

[KenL]

RTFM

So rude!

Nothing wrong with asking others if they have any experience or knowledge of this.