Car PCP Question

[Wooky]

Hi all.
I know there are some forum members who are involved in car sales.
Can any of you help me with a car PCP question?

I currently have a car on PCP.
The current deal ends in September 2017.
When I initially had this car on PCP, I intended to renew the deal every 3 years.
But my circumstances may change in 2017.
I am under threat of redundancy in December 2017 (after my current PCP ends)
As I understand how PCP works, I have 3x options.

1. Buy the car outright after the 3x year PCP deal ends.
2. Take the car back & use the difference between the GFV & actual value as a deposit on another PCP deal.
3. Take the car back & walk away without doing either of the above.

My question is.
If I were to take option 3, will the dealer give me the difference between the GFV & actual value in cash if I don't take out another PCP deal or buy the car?

Obviously, if redundancy is on the cards at my age, I don't want to commit myself to another 3x years of monthly PCP payments when my current deal ends.

Thanks in advance for your replies.

 

[TerryA]

Option 3 is generally a 'give the car back' and you get nothing. The only exception is that if you have done more than the agreed miles then you will also have to pay an amount per mile on the excess. It doesn't work the other way.

There is usually an Option 4 - Whatever you owe on the car you can re-finance so you keep the car and pay off the balance. It's often cheaper to borrow the amount owing from a building society/bank and pay them back monthly but get a quote for both.

 

[GG26]

Option 3 is generally a 'give the car back' and you get nothing. The only exception is that if you have done more than the agreed miles then you will also have to pay an amount per mile on the excess. It doesn't work the other way.

I've recently bought a car on PCP and this is my understanding of how it works.

 

[woody69]

If you give the car back, you walk away and get nothing. If there is any profit in the vehicle, your best option is 2-3 months before the PCP is due to end, to just try and sell the vehicle privately. Get the buyer to pay off the finance and give you the difference. I have done this twice now. Start off high and reduce the price over time to whatever you are prepared to accept. Even if you only get 500 quid it's still profit right?

 

[Smiffy]

Depending on what the car is, you might well be better off (if the car is in good condition and low(ish) mileage) offering the car to the dealer as a straight purchase.
I know in the case of the Qashqai that they are normally worth more at the end of the agreement than the optional final payment. On one of those, anyone who just hands the keys over and walks away is being a bit stupid.
But on some other cars that depreciate quite quickly (I'm thinking mainly French ones here!) just handing the keys over and walking away may well be your only option.
I find that Citroen (in particular) have fairly high optional final payments which help get your monthly payment down but do you absolutely no favours at the end of the agreement.
There is an excess mileage charge built in to every PCP agreement (Nissan is 8p per mile) and if you take out the walk away option this is the only time this becomes payable.