Thread starter
#1

Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

- Thread starter Mudball
- Start date

Thread starter
#1

Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

- Joined
- Jun 22, 2015

- Messages
- 636

Then get a cheaper model or a £500 run about.

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.

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.

Is it possible to refinance this one via a cheaper one? What happens to the balloon payment at the end?

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.

Last edited:

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.

So rude!

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

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