PCP and Motability

LMD

Hello everyone, Ive just been awarded Motability at the enhanced rate. However back in February this year 2021 I bought a brand new Golf mk8 on PCP. How can I change over? 

janer1967

Hi there 

Just because you got enhanced you don't need to have a car with motability you can just use the money in anyway you want 

I would expect there are some conditions in the contract you have with your new car and you may end up out of pocket for nor meeting your side of the deal if you don't keep the car 

I would check all your paperwork before even thinking about it 

OverlyAnxious

You can't swap as Motability and PCP are totally different schemes run by different companies.  You've been awarded a Mobility element in PIP which will go into your bank and you can use to pay for anything you like.

If you read through the terms and conditions of the finance agreement, you'll find it's not easy to cancel at all.  Your best option is to keep your current car, and use your PIP to cover the payments. 

How are you finding the Mk8 out of interest?

LMD

I love the MK8 however Im now struggling with my left arm and shoulder, so its going to be too low for me to get in and out of plus I will need automatic for the same reason. I have only just been put on benefits so I was paying £315 a month for my Golf, just been quoted a far better rate on a Q3 on Motability.

This is all new to me, I'm just so grateful. I was told last Monday I wouldn't make it through the night if they couldn't find a theatre to operate on me  

OverlyAnxious

LMD said:

I love the MK8 however Im now struggling with my left arm and shoulder, so its going to be too low for me to get in and out of plus I will need automatic for the same reason. I have only just been put on benefits so I was paying £315 a month for my Golf, just been quoted a far better rate on a Q3 on Motability.

This is all new to me, I'm just so grateful. I was told last Monday I wouldn't make it through the night if they couldn't find a theatre to operate on me  

Sounds like you've had a hectic week there!  Sorry to hear that.

Motability does work out much cheaper but getting out of your existing PCP contract is the problem here.  I'm also stuck in a finance contract for a car I can't drive, so I do appreciate the issue!  In my case I misread the agreement so no-one to blame but myself.

Would you be looking at another VW?  If so, it'd be worth contacting the dealer and explaining the situation - emphasising that you'd be buying another on Motability from them will make it more appealing to them.  They'd basically have to buy the car from you, but it would be at the current trade rate, which is where you're likely to lose a lot of money as the car is still so new. If they refuse to buy it back, you could sell to somewhere like webuyanycar or Motorway.co.uk, and then pay off the existing finance from that, but again you're likely to be in negative equity.  Sorry to say it's not likely to be a simple process either way.

janer1967

@OverlyAnxious I may be wrong and it kay have changed but you were mot able to sell a car that is in finance privately until a certain stage in 5he contract as essentially the car isn't yours until it is paid for and remains property of finance company 

Again should be in small print 

OverlyAnxious

janer1967 said:

@OverlyAnxious I may be wrong and it kay have changed but you were mot able to sell a car that is in finance privately until a certain stage in 5he contract as essentially the car isn't yours until it is paid for and remains property of finance company 

Again should be in small print 

It probably depends on the finance company so should be confirmed with the paperwork or the supplying dealer as you say.  I think this will be through VWFS on the PCP solutions scheme.

With mine I can sell it as long as I pay off the finance within 7 days of doing so.  It's pretty simple in theory as it can be done with a bank transfer through a phone app.  But finding someone who can afford to buy a nearly new car outright is the problem I have.  The amount I'd lose selling to WBAC made that option unviable.

Also worth noting that mine was a 0% APR deal.  If this is with VWFS as I suspect, it'll be around 6% APR.  That interest also needs to be paid off, as well as the difference between the current value and the invoice price of the car itself.  It's likely to be thousands of pounds difference.  

So, the OP would save around £45 a month using Motability instead of PCP.  BUT I suspect the negative equity, and the advance payment for the PIP car, will make it an uneconomical swap.  However, I also fully understand the problem of not having a suitable car, so if that's the only way they can get a higher seat and an automatic, they may not have much choice.  A chat with the dealer is still the first port of call imo.