Balloon payment

[PAISLEY1903]

Still got 20 months to go out of my 42 payments so while away but was thinking this morning!

Rav4 warranty pretty good... 20 months in ... all being well with car I will be coming off 1.45% interest rate. 

Aware rates going up and wondered if anyone had any recent rates to lock back in from them just out of interest.  Market rates for around £14500 today are around 5.9%.

Aware circumstances change and everyone different but just curious and to what people are thinking of doing .

I might start saving best can to get it down a bit ! 

[ColinB]

I'm in a similar situation and have already started looking at possible replacements. I'll probably look at going smaller, the Yaris Cross is possible but rather small in the back. The Corolla is still tight in the back - I'm 6'1" and no-one can sit behind me. I'd look at the Honda Jazz but my wife says they are only driven by old people - I'll be 72 at the time of the change 🤔

[Mojo1010]

The cross is a good compromise, unless you will regularly have 2 tall people at the back then it's fine I think. 

[philip42h]

3 hours ago, PAISLEY1903 said:

Still got 20 months to go out of my 42 payments so while away but was thinking this morning!

Rav4 warranty pretty good... 20 months in ... all being well with car I will be coming off 1.45% interest rate. 

Aware rates going up and wondered if anyone had any recent rates to lock back in from them just out of interest.  Market rates for around £14500 today are around 5.9%.

Aware circumstances change and everyone different but just curious and to what people are thinking of doing .

I might start saving best can to get it down a bit ! 

I've never been a fan of the PCP model where you simply hand the car back at the end of the agreement and start a new one - it seems to be a rather expensive form of motoring. That said, I've taken the PCP option to finance my last two cars since it offered 0% finance (over 3 and 2 years respectively) and I've simply paid the balance at the end - saving up as I went as necessary ...

... but it all depends on what you want from your car finance 'plan' ... 😉

[Mojo1010]

Some prefer the model of a new car every 2-3 years within warranty. Others like u and myself, keep cars for longer unless circumstance change requirement to a different car. 

[Flatcoat]

2 hours ago, philip42h said:

I've never been a fan of the PCP model where you simply hand the car back at the end of the agreement and start a new one - it seems to be a rather expensive form of motoring. That said, I've taken the PCP option to finance my last two cars since it offered 0% finance (over 3 and 2 years respectively) and I've simply paid the balance at the end - saving up as I went as necessary ...

... but it all depends on what you want from your car finance 'plan' ... 😉

The LAST thing you should do is ‘hand the car back’!!! Along with a big fat wedge of profit for the finance company….. Either save up (my preference) or take a loan (refinance) to pay the outstanding balance. After that you will have a car with reasonable equity to fund another car deposit, either by trade in or a private sale giving you a chunk of cash. I am expecting my RAV to be worth quite a bit more than the ballon payment in June 2025. 

[ColinB]

I've used several PCP deals and the equity in the car has always paid a large chunk of the deposit for the next one

[Yugguy1970]

3 minutes ago, ColinB said:

I've used several PCP deals and the equity in the car has always paid a large chunk of the deposit for the next one

I had 5 to 6 grand equity in the 21 design rav I just traded in.

[PAISLEY1903]

I think I will keep it once ends. Warranty is great as is reliability. 

Time to start saving up !!!

 

[Marcusthehat]

We intend to keep ours, with ballon payment due in about 10 days.

[PAISLEY1903]

12 hours ago, Marcusthehat said:

We intend to keep ours, with ballon payment due in about 10 days.

Are you refinancing. Would be good to see what toyoya are offering and how quickly they wanted balloon payment paid after final installment 

[philip42h]

7 minutes ago, PAISLEY1903 said:

Would be good to see what toyoya are offering and how quickly they wanted balloon payment paid after final installment

Some months before the end of the agreement, Toyota Finance will be asking how you want to proceed at the end of the agreement. If you wish to keep the car, the final / balloon payment will fall due exactly one calendar month after your last regular payment - all of that is in your existing agreement. IIRC they do offer additional financing options ...

[Broadway One]

16 hours ago, Flatcoat said:

The LAST thing you should do is ‘hand the car back’!!! Along with a big fat wedge of profit for the finance company….. Either save up (my preference) or take a loan (refinance) to pay the outstanding balance. After that you will have a car with reasonable equity to fund another car deposit, either by trade in or a private sale giving you a chunk of cash. I am expecting my RAV to be worth quite a bit more than the ballon payment in June 2025

Hi......agreed.......my last RAV 4 Hybrid balloon payment was £14k (3 years PCP).
12k miles FSH, garaged, VG condition. I pass my cars to younger family members.
In this case comforting to know my daughter is driving around in a safe motor.
At 14k the car was some 5k below the going rate at the time.
Other family members are showing interest in my existing RAV PHEV (2 years in a 42 mnths. PCP)
Probably 10/12k miles max. £20k balloon payment required.
Just my way of passing on the benefits of PCP to sons/daughters/grandkids always assuming they are fans of Toyota........Barry Wright, Lancashire.  
       

[PAISLEY1903]

I will probably have 40k on my Rav4 Excel hybrid 71 plate in 20 months by then and a balloon payment of £14k approx. 

No idea what a near 4 year old with 40k milew would worth but probably more than £14000 with warranty I hope 

[Sealiedog]

I paid my balloon payment of £20000 in May after 2 years at 0%. The car would have traded at £32000 at that point in time.

[Marcusthehat]

On 7/1/2023 at 10:40 AM, PAISLEY1903 said:

Are you refinancing. Would be good to see what toyoya are offering and how quickly they wanted balloon payment paid after final installment 

No, we simply paid the balance.