Finance help

[wilkoturbo]

Hi all had my car 3 years it's on a balloon payment so there is an outstanding balance soon to pay !
My question is do I keep the car ?? As it's been a good one never really been a problem or trade in and get rid of the balloon ?
Thanks Paul


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[Glen]

Hi I would pay the balloon payment if I really like the car and the car is worth more than the payment.
If it's not then I would trade up hope this helps

[graemeX5]

Hi
Normally the balloon payment is supposed to be the residual value of the car after the 3 year PCP period, but this is not always the case.

So if the car is worth more a lot of people upgrade to a newer car and use the difference as a deposit. However if the car is less worth then you would have to pay the shortfall and if you don't want the car hand back the car and walk away, or start again with a new car.

Depending on your circumstances and your budget as Glen says, if you like the car and want to keep it then you can either buy it or re-finance the balloon payment, poss via the dealers finance or via a personal loan etc. Although make sure you check the interest rates you are paying as it's likely to me higher than on a new car, as well as the monthly amount and total payable by you for doing this.

Also It's always worth looking at what deals and offers are available from them as well.
Graeme

[wilkoturbo]

Thank you for the advice , I am thinking about swapping the car as I'd have to take a loan to pay the balloon and it's already got 67k on the clock , think the Money would be better spent on a lower mileage car ??
Paul


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