How much does a second owner affect residual values?
Discussion
Hi All,
My other has recently ordered a new Golf GTD. She's been quoted that she will get the car in about March - April time (stupid lead time for a golf!).
Ideally, she wants it sooner that. Ideally for January so we can take it to the Alps for our holiday. I've been looking into, and we've now got a demonstrator on the card. We're PCPing it, so it actually works out more expensive monthly on the demo than on the new one. Interest rates are the same, but guaranteed future value is much less.
So she has ordered a £28k car. We've managed to get it for £25k ish (about 12% discount). And on a PCP, it's £320 a month (£500 dep), £16,000 GFV (Total Payable =£27200).
On this demo we're contemplating, it's actually a £31k (new List), and they are now selling it for £24,000 which in effect is about 20-25% off the car new, however, is 3 months old, 2k on the clock, and already has an owner. On a PCP, it's £360 a month, but the GFV is £13,000 (Total Payable = £25,600). And to bare in mind, on the demo we're considering, it would be £34k total payable without a discount.
So yeah, back to my question. Does having a second owner effect the residual value that much? Even though the monthly's are more on the demo, I would expect to have a fair bit more equity on the demo than the new one.
My other has recently ordered a new Golf GTD. She's been quoted that she will get the car in about March - April time (stupid lead time for a golf!).
Ideally, she wants it sooner that. Ideally for January so we can take it to the Alps for our holiday. I've been looking into, and we've now got a demonstrator on the card. We're PCPing it, so it actually works out more expensive monthly on the demo than on the new one. Interest rates are the same, but guaranteed future value is much less.
So she has ordered a £28k car. We've managed to get it for £25k ish (about 12% discount). And on a PCP, it's £320 a month (£500 dep), £16,000 GFV (Total Payable =£27200).
On this demo we're contemplating, it's actually a £31k (new List), and they are now selling it for £24,000 which in effect is about 20-25% off the car new, however, is 3 months old, 2k on the clock, and already has an owner. On a PCP, it's £360 a month, but the GFV is £13,000 (Total Payable = £25,600). And to bare in mind, on the demo we're considering, it would be £34k total payable without a discount.
So yeah, back to my question. Does having a second owner effect the residual value that much? Even though the monthly's are more on the demo, I would expect to have a fair bit more equity on the demo than the new one.
Obivously to them it must make a fair difference but personally I couldn't care less if I was buying a used car as long as it was looked after by all previous owners.
However I'd imagine that your extra cost isn't just down to that but due to other subsidies from the manufacturer to push the sale of "new" cars.
However I'd imagine that your extra cost isn't just down to that but due to other subsidies from the manufacturer to push the sale of "new" cars.
There won't be much in it at all, few hundred quid maybe. Most options won't make any difference to the value. Nobody can predict the real value of it in 3 years time though, just look after it as best as possible and change it at the end of the term. You can also adjust the GMFV to lower than it's maximum if you're happy paying a higher monthly figure and want more equity to roll into your next deal.
What baffles me is why an order had been placed for a brand new car when you weren't happy with the lead time???
What baffles me is why an order had been placed for a brand new car when you weren't happy with the lead time???
It will make sod all difference.
You're paying £360 a month for a GTD and your worried about the effect an extra owner will have on residulas??!
http://www.mylbrookvehiclefinance.co.uk/business-l...
You're paying £360 a month for a GTD and your worried about the effect an extra owner will have on residulas??!
http://www.mylbrookvehiclefinance.co.uk/business-l...
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