Pcp Finance & Returning The Car

[rossko]

I recently purchased a mini cooper s in jan 2006. Its under a 3 year pcp with the balloon payment after the 3 years.To be honest can't really afford the repayments & unfortunatly need to get rid of the car.

Does anyone have any finance knowledge & if so what options are open to me. I'd rather know before calling the mini finance dept.

Any threads would be appreciated, thanks

[MINICooperMurph]

you have to pay back half the financed amount plus give the car back. They also record voluntary terminations on your credit history.

[minicore]

What does it cost to pay off the finance early? Can you even do that?

If so, you could take out a low interest loan (I had a letter from my bank the other day offering some amazing rates for £3k, £5k and £10k) to pay off the car, then sell it privately. You can then either pay off the loan over X years with the money from the sale, or pay it off up-front and take another hit from the bank.

Don't know whether that's more or less cost effective than "giving it back" but at least it won't harm your credit rating...

[minicore]

Another idea might be to take a longer term loan from the bank, which would mean smaller monthly payments than the 3 year loan on your car. These payments would be more manageable, meaning you could perhaps keep the MINI?