What to do ?

[Norman]

Hi Everyone.
First post, however always come here for advice and to read some great topics
Thought I would ask some advice
So I'm a bit stuck with what to do and wanted to tackle some debts before they get out of hand. I am fortunate to have a good steady job and an excellent credit rating.

Debts are
PCP BMW 12.9 APR - 18 months remaining £210.32 a month balloon payment at the end of £14132.
Loan 3.1 APR - 4 years 10 months remaining £213 a month. Remaining 12k settlement
Credit card 0 percent APR (shift the debt around) 28 months at 0 percent. Pay £60 a month remaining £5100
Cycle loan 0 percent APR 2 years 2 months. £75 a month remaining £2175
Mortgage (joint) 156000 remaining deal ends November 2021. Variable rate 3.74 APR and pay at the moment £780.

So (bit stupidly) decided to get PCP on my current car (even though I had the tesco loan for a car I know silly! Lesson learnt) and it has now impacted on me being able to get another mortgage/remortage due to affordability.
I am thinking of selling the car and paying off the pcp and then look to buy a cheaper car thus paying off the pcp. Problem is I can’t as it isn't mine to sell. I am eligible for a personal loan (3 percent APR) which I could use to buy the car then sell then re pay the loan. The PCP early settlement figure is 15500 and the car is worth from a few valuations 18k-19k including we buy any car and private sales.
Or do I over pay on the PCP to finish it earlier, however I would then need another car which would mean another PCP (but a cheaper one) or have to buy a cheap run about.

The car is expensive to run as well due to high tax (450 a year) and is a larger diesel engine
Problem is I travel around 1000 a month so need a reliable good car.
Anyone have any advice what to do? I’m worried and a bit stressed and not sure if I am missing something obvious.
Hope it makes sense thank you

[Timewilltell]

Does your PCP cover you for 1000 miles a month? If not you will be subject to extra charges at the end I’d imagine. I don’t know enough about PCP to give any meaningful advice. Personally I think they only work for very low mileage users.
do you have any money available to purchase a second vehicle without borrowing? Although this would make the PCP vehicle an expensive ornament.
It probably isn’t worth selling the cycle as you probably owe more on the loan than the value of sale?
If you were to get the loan to buy the vehicle then sell the vehicle would the sale price cover the loan+interest? But you would still need a fund to purchase another vehicle. What I will say is that the majority of vehicles these days are reliable it is only a few that have issues as such so a vehicle of 4-6 years old would be a reasonably good bet. Of course you would need to account for where you drive as a lot of major cities have charges for congestion, emissions etc, this may impact on what vehicle you needed to purchase?

[ca71]

I think I'd be buying a reliable old banger (maybe something japanese), getting rid of the PCP, re-mortgage then see if you can challenge the remaining loans/cards in terms of CCA compliance (but this will screw up your credit rating if you end up defaulting on them).

[Timewilltell]

I guess this all balances on what you can and can’t afford to pay? If you can find a way out of the PCP and arrange alternative transport then how do you sit with the rest? Are you remortgaging to pay everything off, extend the house, or just move to another house. ??

[Norman]

Does your PCP cover you for 1000 miles a month? If not you will be subject to extra charges at the end I’d imagine. I don’t know enough about PCP to give any meaningful advice. Personally I think they only work for very low mileage users.
do you have any money available to purchase a second vehicle without borrowing? Although this would make the PCP vehicle an expensive ornament.
It probably isn’t worth selling the cycle as you probably owe more on the loan than the value of sale?
If you were to get the loan to buy the vehicle then sell the vehicle would the sale price cover the loan+interest? But you would still need a fund to purchase another vehicle. What I will say is that the majority of vehicles these days are reliable it is only a few that have issues as such so a vehicle of 4-6 years old would be a reasonably good bet. Of course you would need to account for where you drive as a lot of major cities have charges for congestion, emissions etc, this may impact on what vehicle you needed to purchase?

Thanks for your response. The car has 12k a year on mileage and due to covid its under miles as I haven't been driving as much. The car is like new still so confident I won't incur any charges.
I dont have any savings or anything to buy another vehicle.
yeah the cycle wouldn't cover the loan and i use it alot to keep fit wellbeing.
the car would leave me between 3k and 4k depending on sale price as it's worth between 18.5k and 19.5k and settlement is 15.5k
I'm fortunate I dont have congestion charges or anything like that to worry about fortunately

[Norman]

I think I'd be buying a reliable old banger (maybe something japanese), getting rid of the PCP, re-mortgage then see if you can challenge the remaining loans/cards in terms of CCA compliance (but this will screw up your credit rating if you end up defaulting on them).

Thank you I dont want the cca route as I can cover the other debts and have a good rating so I know that would cause issues.

[Norman]

I guess this all balances on what you can and can’t afford to pay? If you can find a way out of the PCP and arrange alternative transport then how do you sit with the rest? Are you remortgaging to pay everything off, extend the house, or just move to another house. ??

I'm fine for the rest and happy to pay. Just unsure on the best route with a vehicle. I am remortgaging the house we are in. Stupidly took the PCP after the mortgage was arranged so I'm stuck now.
The other option is too buy the car extend my tesco loan consolidating them together extend the term so pay less then try and overpay on the loan ! Just a bit daunting and not sure that's the best way. Although I do love the car and would see me for a few years. Just not sure what best ?