Jcw mini worth less than pcp final payment half term?

Jcw mini worth less than pcp final payment half term?

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Turbo-Dan

Original Poster:

69 posts

93 months

Sunday 19th February 2017
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Hi wise ph'ers! Long time lurker but I have a topic for those who know about pcp deals.

We have a pristine Mini JCW coupe, 2012 61, 46k full mini history etc. Loaded with nearly every option as an ex showroom car, h/k, lounge leather, media xl, chilli..

Im 24-25 months into a 48 month pcp contract with Bmw financial services, and was looking to change up to an m140i.
Speaking over the phone to sales before going in nobody thought it would be any issue and that I would be able to get out of the mini relatively unscathed, and get a good deal on the m140i (£337 deposit and £337 p/m 8k miles).
Test driven the m140i, and I can see what all the hype is about, got back after the test drive and down to some figures.
They offered me 6.5k for the mini, we bought it for over 16k two years ago with 24k miles on it! The worst part is the final settlement figure is £6800, the salesman walked back and forth to the office and eventually offered 7k, and £400 p/m for the bmw, am I right in thinking they were simply trying to offset the negative equity into a new finance agreement?
Would this be win win for Bmw financial services getting me out of a car that is deprecating faster than they want into a new deal?
Also car is worth near 12k as a private sale looking at other examples for sale, which would more or less cover the outstanding balance. But it seems Bmw are looking for huge margins on the mini?
What would you do..?
This is my first pcp deal, go easy on me.

DuraAce

4,240 posts

159 months

Sunday 19th February 2017
quotequote all
Sell it privately for 12, pay your 6.8 to clear your finance. Use the rest as downpayment on the bmw, thereby reducing your monthly payments a bit surely?

Dealer will offer less for trade in as they aren't a charity.

MisterJD

146 posts

110 months

Sunday 19th February 2017
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What will We Steal Any Car offer you? Otherwise consider voluntary termination if you think there is only negative equity for you.

How good is the discount on the M140i? There is plenty of margin in them and a tame dealer on another forum offers up straightforward deals.

With both of those checked you can gauge the attractiveness of the trade in quote and the dealers offer on the new car.

MrOrange

2,031 posts

252 months

Sunday 19th February 2017
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Sell it private for £12k. Take the cash and negotiate a better deal on the new car. Looks like a result.

rsbmw

3,464 posts

104 months

Sunday 19th February 2017
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His final payment is 6.8k, which means he owes 12ish right now. Selling it for 12 will get you out fairly clean though.

Turbo-Dan

Original Poster:

69 posts

93 months

Sunday 19th February 2017
quotequote all
Sorry I meant the final settlement figure is circa 12k including the 6800 final payment. So if I sell for 12k I will just clear finance and start fresh. The m140 deals were pretty good, 5.7k deposit contribution straight away before any real haggling. The issue I had was the fact that the mini is worth so little, I'm aware dealers aren't a charity but it shouldn't have depreciated so much, it's worth less now trade in than it should be in two years time? We buy any car offered 6.8k too. I'm honestly shocked, I would've thought it was still sitting around 9k trade in.

Turbo-Dan

Original Poster:

69 posts

93 months

Sunday 19th February 2017
quotequote all
Sorry I meant the final settlement figure is circa 12k including the 6800 final payment. So if I sell for 12k I will just clear finance and start fresh. The m140 deals were pretty good, 5.7k deposit contribution straight away before any real haggling. The issue I had was the fact that the mini is worth so little, I'm aware dealers aren't a charity but it shouldn't have depreciated so much, it's worth less now trade in than it should be in two years time? We buy any car offered 6.8k too. I'm honestly shocked, I would've thought it was still sitting around 9k trade in.

Shambler

1,184 posts

143 months

Sunday 19th February 2017
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look at handing the car back to the finance company.

Hitch

6,100 posts

193 months

Sunday 19th February 2017
quotequote all
Turbo-Dan said:
I would've thought it was still sitting around 9k trade in.
A quick look on Autotrader suggest the market price for a 2012 JCW Coupe from a general dealer is around £9.5k-£10k so trade is always going to be a couple of grand plus below that to cover cleaning, fixing anything that is wrong, throwing a st warranty on it and profit.

It is quite a niche car and the age/miles makes it unlikely they would retail through a franchised main dealer so they're getting bids off their usual trade buyer who in turn would be worried about it sitting for a while until that niche buyer turns up.

Sounds about right.

Turbo-Dan

Original Poster:

69 posts

93 months

Sunday 19th February 2017
quotequote all
Hitch said:
A quick look on Autotrader suggest the market price for a 2012 JCW Coupe from a general dealer is around £9.5k-£10k so trade is always going to be a couple of grand plus below that to cover cleaning, fixing anything that is wrong, throwing a st warranty on it and profit.

It is quite a niche car and the age/miles makes it unlikely they would retail through a franchised main dealer so they're getting bids off their usual trade buyer who in turn would be worried about it sitting for a while until that niche buyer turns up.

Sounds about right.
Yeah there are a couple at that price, but also a few with spec below the level of mine with more miles nearer 12k, I think I will hold onto it until I can v/t, I still like driving it and today was really just a trip to have a look at an m140 that escalated when I realised what deals were available.

okgo

37,842 posts

197 months

Sunday 19th February 2017
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Sadly you bought an overpriced version with a load of worthless tat on it which bumps up purchase price but does not a lot for residual.

55palfers

5,892 posts

163 months

Sunday 19th February 2017
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In two years you have only paid £4K off the car?


Turbo-Dan

Original Poster:

69 posts

93 months

Sunday 19th February 2017
quotequote all
No I have paid more than 4K off, but as you know interest, gap insurance etc all bumps up the total amount payable. And the worthless tat mentioned makes it quite a nice thing to live with, standard mini interiors are not what you would call plush, the interior and media system is comparable to specced up Bmw levels with the idrive etc, the car was no more expensive at the time than a hatch version and the spec made very little difference in price over other lesser specced cars.

Sheepshanks

32,519 posts

118 months

Monday 20th February 2017
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Sweeping generalisation, but PCP doesn't work well on used cars. On new there's often deposit contributions and almost always a lower interest rate.

Begall

138 posts

90 months

Monday 20th February 2017
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Well I've looked and a 61 plate Mini Coupe JCW with 21k miles is on autotrader for 11k from a dealership - so I think your expectations of 12k private sale for a 47k mile example are a little unrealistic.

ZX10R NIN

27,490 posts

124 months

Monday 20th February 2017
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I say put it up for 12k if you get interest then sell it if not there's no harm done you just keep it for a bit longer & still enjoy driving it. smile

MOBB

3,575 posts

126 months

Monday 20th February 2017
quotequote all
So assuming you went with the deal, the (2 to 3 year old when you bought it) Mini has cost you £9k plus interest to own for 2 years.

And BMW are happy to roll your negative equity over into the new car deal.

I would be keeping the Mini until the term is up, in effect very cheap motoring?

Examples like these show how leasing can be far more sensible than PCP. No nasty surprises.

Turbo-Dan

Original Poster:

69 posts

93 months

Monday 20th February 2017
quotequote all
Yeah I'm realising now that a new car pcp is probably the better option for next time. Looking on auto trader I do see what you mean, but prices elsewhere also seem to be above and below, there is an example on motors with a lesser spec, same age and 6k more miles for 11.9k, looking at it I would only need 10.5 to cover my finance anyway, but I think I'm just going to enjoy the car for one more year, then look at getting a 'grown up' car. Thanks for the advice all of you. This is a great community.

Sheepshanks

32,519 posts

118 months

Monday 20th February 2017
quotequote all
MOBB said:
Examples like these show how leasing can be far more sensible than PCP. No nasty surprises.
Maybe. But really you've got to stick with the term on a lease - early termination costs vary, but it could be 100% of all outstanding rentals.

Turbo-Dan

Original Poster:

69 posts

93 months

Monday 20th February 2017
quotequote all
Yeah maybe they can be, but at the time it worked out a good deal, mrs had a twingo 133 cup that we traded in, and walked out with a couple of k in our pocket, the twingo needed some work to the tune of 1k, and we had just bought our house. So that was win win for us really, I would dread to think how much a lease would be on a monthly basis on a niche car like this too, I would expect it to be double what we pay monthly now. Looking at it this way I have got a bit of a bargain, as mini/Bmw haven't valued it correctly I dare say my monthlys would have been higher if they would have predicted the depreciation correctly. Is this right?