Hi Guys,
1st of all thanks for your input, much appreciated.
You're all right , it's going to depend on specifics. To that end, I’ve put some figures out in a spread sheet.
I’ve assumed a few things here just to get the spread sheet to work, 1 is that petrol and diesel prices will remain at what they were when I passed the Shell station this morning. Second is the amount extra for excess mileage. I’ve tried to work from the GFV on the PCP deal, compared to what the finance calculator on the website says at the different amounts of mileage. Third, i've assumed the MPGs.
However, if my calculations are correct, if the monthly payments on the new car worked out anywhere less than £130 a month a month less then I currently pay, I’m better off.
So in a sense, it doesn’t really matter if I am in negative equity or not, it’s about the difference in cost between taking a hit on 1 year depreciation, or taking a hit by running a more expensive car and trading in later with a lot more miles on the clock.
Keeping this car or changing it are both bad ideas from a financial point of view, I just need to choose the best bad idea.
