Changing from one PCP to another.

[Hifly130]

Hello all.

Got a Bmw on a PCP deal and 3 years in out of 4. Thinking of changing soon and keen on brand new Mercedes A class.

How does it work switching from one PCP to another. Does my current car have to go back to BMW or if I walked into main Mercedes dealership would they offer to buy my bmw and pay finance in order for me to get on a PCP for a class or is that not possible?

Sorry for dum question but my original plan was to pay off the final balloon payment but with the new diesel issue I think my current BMW will be worth less than the option to buy price. This is my 1st Pcp and originally thought I would be sticking with the bmw.

Many thanks

[syl]

Mercedes buy it and settle the finance. You get what’s left. If there’s nothing left and you still owe some, the Mercedes dealer can just offer you less discount on the new car.

[nmd87]

What's changed that's made you want to get out of a PCP before the end of the term? You might want to reconsider getting into another PCP if you couldn't see out the first one!

Saying this as someone who ended their PCP early due to a change in circumstances and wouldn't take out another PCP.

[Dimebars]

You can PX the BMW anywhere. Mercedes will value it, and offset that value against your settlement. If it's more you have a deposit. If not you have negative equity.

At 3 years into a 4 year deal, you may not be far away from VT point if the negative equity situation is bad.

Then there is the merry dance around discount, PX price and dealer smoke and mirrors

[Hifly130]

Thanks for the replies. Got an X3 currently. Kids getting older so don't need that bigger car anymore. It's fortunately not due to finance issues. Happy paying what I do currently per month and putting a deposit in the same size as last time.

I think it's close to negative equity wasn't sure if I hold on another year if the negative equity situation would be worse as it's depreciated more than I expected. I believe mainly due it being euro emission 5 and diesel.

It's not a definite as I said happy keeping car to very end but if right deal/car came up then happy changing.

Thought most people change up before the end of the term?

[TXG399]

I spent a miserable year working in a main dealer and people typically change 3 years into a 4 year term. It was incredibly rare that we had people see out the whole 4 years and when it did happen it was because of negative equity.

[Mandat]

nmd87 said:

What's changed that's made you want to get out of a PCP before the end of the term? You might want to reconsider getting into another PCP if you couldn't see out the first one!

Saying this as someone who ended their PCP early due to a change in circumstances and wouldn't take out another PCP.

Since PCP is just a form of HP finance, you can sell or part-ex the car at any time you want, without having to wait for the end of the term.

It really is no different from buying a car outright and then some tine later deciding to change to a different car for whatever reason.