Options at completion of finance deal

[chasethesun]

Hi All,

I would be grateful for your advice.

Currently I am 23 months into a 24 month PCP on a Porsche Cayenne Diesel S.

It is a stonking machine, but the value has been hugely affected by dieselgate

At end of term:
GFV is 41 k
Trade in value 35k (!)

Clearly I’ve won on the finance deal. However I would like to keep the car but not for £6k difference in value.

Is there any way to hand the car back to Porsche finance and then rebuy the car at the lower value, or a similar method to avoid a £6k bath?

Thanks!

Edited by chasethesun on Sunday 19th January 14:11

[Prestonese]

The way to do this is to pay off the outstanding amount or by refinancing with the company who provided the loan in the first place.

In either case, the main factor is the finance amount outstanding on your current deal rather than GFV or Trade in. I think that is fair for both but it's not always easy to get a good refinance deal from the dealer when a PCP ends. If the amount is not huge, you can just take out a personal loan from the high st which usually offer cheaper rates. That's how I would do it but others may have budget considerations.

[Cheib]

chasethesun said:

Hi All,

I would be grateful for your advice.

Currently I am 23 months into a 24 month PCP on a Porsche Cayenne Diesel S.

It is a stonking machine, but the value has been hugely affected by dieselgate

At end of term:
GFV is 41 k
Trade in value 35k (!)

Clearly I’ve won on the finance deal. However I would like to keep the car but not for £6k difference in value.

Is there any way to hand the car back to Porsche finance and then rebuy the car at the lower value, or a similar method to avoid a £6k bath?

Thanks!

Edited by chasethesun on Sunday 19th January 14:11

Have you spoken to VW Finance about it ? That would be my first call. Can't do any harm. They will put the car into a trade auction.

Is the trade in value what you have been quoted against another car or the actual trade value ?

[chasethesun]

Hi All,

Thank you for the replies.

The trade in value was taken from Parkers’.
I’ve spoken with both the Porsche dealership where I bought the car and Land Rover against a trade-in for a Range Rover. Both tell me that there is no equity left in the car.

From what you say, it seems my options are:

1. Walk away, hand back the keys and recognise that the cost of the PCP did not cover the full cost of motoring, and I’ve won at the expense of the finance company.

Or

2. Call VWFS and explain the situation. They might allow me to buy the car back at its current value, and they swallow the difference between the current value and the GFV?

Thanks again

[Porsche911R]

chasethesun said:

Hi All,

Thank you for the replies.

The trade in value was taken from Parkers’.
I’ve spoken with both the Porsche dealership where I bought the car and Land Rover against a trade-in for a Range Rover. Both tell me that there is no equity left in the car.

From what you say, it seems my options are:

1. Walk away, hand back the keys and recognise that the cost of the PCP did not cover the full cost of motoring, and I’ve won at the expense of the finance company.

Or

2. Call VWFS and explain the situation. They might allow me to buy the car back at its current value, and they swallow the difference between the current value and the GFV?

Thanks again

Why would you pay £41k for a car worth -35k

Walk away is the only Choice here.

[chasethesun]

Agreed.

I suppose my query was whether VFWF could sell it to me at market value (£35k) vs GFV (£41k).

It is a shame if I have to walk away- it’s been an extremely impressive car. The engine is a delight but clearly the market thinks that a Diesel engine is a big liability.

Does anyone have any experience with the new petrol cayenne S that has previously driven the former model diesel S?

[Wilmslowboy]

It might be worth looking at the retail price (value) of the car, after all you said it a good car and you probably won't be able to replace it with a car at trade price.

£41k for a 2018, good spec car doesn't sound like silly money (needless if you can get it for £35k even better)

[Cheib]

chasethesun said:

Agreed.

I suppose my query was whether VFWF could sell it to me at market value (£35k) vs GFV (£41k).

It is a shame if I have to walk away- it’s been an extremely impressive car. The engine is a delight but clearly the market thinks that a Diesel engine is a big liability.

Does anyone have any experience with the new petrol cayenne S that has previously driven the former model diesel S?

I imagine Parkers is optimistic on actual trade values ?

Anyway call VWFS and see what they say. Worst thing they can say is “no”....in which case you have lost nothing

[Geoff39GL]

Wilmslowboy said:

It might be worth looking at the retail price (value) of the car, after all you said it a good car and you probably won't be able to replace it with a car at trade price.

£41k for a 2018, good spec car doesn't sound like silly money (needless if you can get it for £35k even better)

I agree looking at the prices of similar used and you would spend at least £41k to get a replacement, its not as bad a situation as its made out on here.
If you like it just refinance it at £41k.

[gmasterfunk]

Maybe point out they won't have to

Inspect
Collect
Transport
Prep
Fix niggles
Market
Pay commission.

[pete.g]

I do know that my brother's boss at his previous employment handed back a low mileage X5 4.8iS he'd had on a very attractive lease deal and then bought it back at the auction the dealer sent it to for a song - though this is easier in Northern Ireland as they only use one particular auction.