Settlement figures and doing the deal

[macp]

A thought occurred to me or perhaps I am just being simple. How is the game played when you walk into any car dealership and divulge your settlement quote. Do you keep your settlement figure to yourself until they make you an offer for the new car. Im thinking if they know the value of your car beforehand then they can see all of your cards as it were.

Thoughts, comments ?

[randlemarcus]

Why on earth would you do that? That's like going up to the salesman, saying "I would like to pay three grand to change, but I'm open to paying lots more"

[macp]

I get that in the face of it that was a stupid question but I can’t take it back now. Thanks for the reply but honestly I was just feeling not feeling confident in myself.

[Wills2]

I wouldn't let them know without knowing how they value your car first and they don't need the settlement to do that, I'd also be armed with a offer or two from other sources.

I've never had a dealer ask me for the settlement before giving me a value.

[Dan W.]

macp said:

A thought occurred to me or perhaps I am just being simple. How is the game played when you walk into any car dealership and divulge your settlement quote. Do you keep your settlement figure to yourself until they make you an offer for the new car. Im thinking if they know the value of your car beforehand then they can see all of your cards as it were.

Thoughts, comments ?

Depends if you need finance quotes we need the exact settlement figure to work out accurate figures, Personally your settlement figures make no difference to us on how we value your part exchange

[SydneyBridge]

If you get offered less than the settlement figure, ask if they will agree to X (perhaps add a little bit on top) to pay off the finance.

If you get offered more, you have some money for a deposit

[anonymous-user]

I think it was in the ask a salesman thread…

The process should go something like this..

1. What’s the best deal you can do on the car?
2. Oh wait I have a part-exchange. WBAC are offering me more than you. Can you beat it?
3. I just remembered there is finance to clear on it

Something like that…

[Dan W.]

Super_GP said:

I think it was in the ask a salesman thread…

The process should go something like this..

1. What’s the best deal you can do on the car?
2. Oh wait I have a part-exchange. WBAC are offering me more than you. Can you beat it?
3. I just remembered there is finance to clear on it

Something like that…

I would be surprised if this would work these days, had the similar situation today.

C4 Picasso we are selling is up for £10,495 customers asks best deal... I said are you part exchanging ? no was the reply so i said ok i will do it for £10,295

10 mins later the part exchange suddenly comes into conversation, No problem we can accept that but the price of the car goes back upto £10.495 minus your part exchange what have you got..... fiesta.. but customer is unhappy with me putting car back upto £10,495 well we are not going to discount a car and give you a great price for your part exchange.

a wasted 10 mins from both parties with this, customer didnt have the settlement figure either so we had to ring for that.

i think being upfront and honest is usually the best way to deal with getting the best deal these days.

so many ways to finance your car and to sell your part exchange nothing really needs to be cloak and dagger .

[macp]

Thanks all I think I would just say we have a part exchange and ask a valuation. Then discuss settlement.

[Lee540]

I suspect dealers know your settlement figure once you've handed your car details over.

In my case, that is for sure.

Edited by Lee540 on Thursday 9th September 14:50

[anonymous-user]

macp said:

Thanks all I think I would just say we have a part exchange and ask a valuation. Then discuss settlement.

Knowing the value of your exchange is the best thing you can do and being realistic about it. A car with all four wheels damaged, dents, and scrapes is not cap clean (or excellent).

Someone in the car sales thread suggested this site to get an idea of figures:

https://www.volkswagen.co.uk/used-cars/part-exchan...

[macp]

Super_GP said:

Knowing the value of your exchange is the best thing you can do and being realistic about it. A car with all four wheels damaged, dents, and scrapes is not cap clean (or excellent).

Someone in the car sales thread suggested this site to get an idea of figures:

https://www.volkswagen.co.uk/used-cars/part-exchan...

Thanks appreciate this and after looking at the UP GTi today its the car for us. Head and shoulders above the Kia Picanto GT line in our opinion. I would say our current car is in truly excellent condition so worth a strong valuation.

[macp]

So we have ordered a new UP GTI and got a good deal. But am I correct in thinking that on or just before collection the dealer will need a new settlement figure from us. The thought being that in say 3mths time when the new car arrives the settlement figure will be less as we will have made another 3 or so payments on our current car.

Apologies for the dumb question but it just occurred to me.

[anonymous-user]

macp said:

So we have ordered a new UP GTI and got a good deal. But am I correct in thinking that on or just before collection the dealer will need a new settlement figure from us. The thought being that in say 3mths time when the new car arrives the settlement figure will be less as we will have made another 3 or so payments on our current car.

Apologies for the dumb question but it just occurred to me.

Yes and no. You would have paid off some extra by then. So your monthly figure should be adjusted accordingly to reflect this.

However, if your car was to decrease in value for whatever reason e.g. damage, market price changed… then dealer might say you’re down on the deal and cannot pass this benefit on to you e.g. by £300 on a bumper repair.

So it all depends on nearer the time. You could run another valuation online closer to any collection date/when you firm up figures again.

Given how chaotic the market is there is no telling how much value will increase/decrease. A nice dealer may honour the original agreement if they don’t have to take a massive hit. It’s unlikely prices will drastically dip by thousands less in three months. Similarly, if your car was worth £800 more you would want to see this in your deal.

[macp]

Thanks for the reply. There was a strong discussion with the salesman who told us they would have to revalue our car nearer to collection. I told him it was a deal breaker if they turn round in 3mths and tell us our car is worth x pounds less and that we must make up the difference. Similarly I did say that as far as I was concerned up or down the price we agree today is what I will honour and I expected the same in return. The sales manager lurking near by and maybe sensing I was about to walk then suddenly dived in and said. Whatever your car is valued at come collection day we will honour the agreed monthly figure given. I am quite happy with that as it’s all funny money anyway. At the end of the day I got the deal I wanted and both of us may win or lose as used values change. If they make a buck or two more I don’t have a problem with that. They have to keep the lights burning in the showroom somehow.

But on collection day do VW finance contact our Ford finance and pay the settlement figure on collection day. Is it as simple as that ?

Edited by macp on Sunday 12th September 09:48

[Sheepshanks]

Dan W. said:

10 mins later the part exchange suddenly comes into conversation, No problem we can accept that but the price of the car goes back upto £10.495 minus your part exchange what have you got..... fiesta.. but customer is unhappy with me putting car back upto £10,495 well we are not going to discount a car and give you a great price for your part exchange.

There's surely got to be a better way of handling that - appearing to increase the price is never going to be well received?

[Wills2]

macp said:

Thanks for the reply. There was a strong discussion with the salesman who told us they would have to revalue our car nearer to collection. I told him it was a deal breaker if they turn round in 3mths and tell us our car is worth x pounds less and that we must make up the difference. Similarly I did say that as far as I was concerned up or down the price we agree today is what I will honour and I expected the same in return. The sales manager lurking near by and maybe sensing I was about to walk then suddenly dived in and said. Whatever your car is valued at come collection day we will honour the agreed monthly figure given. I am quite happy with that as it’s all funny money anyway. At the end of the day I got the deal I wanted and both of us may win or lose as used values change. If they make a buck or two more I don’t have a problem with that. They have to keep the lights burning in the showroom somehow.

But on collection day do VW finance contact our Ford finance and pay the settlement figure on collection day. Is it as simple as that ?

Edited by macp on Sunday 12th September 09:48

Firstly it's not funny money it's real money and the dealer is buying your part ex not VWFS. Your confusion over the process is a good advert for separating the disposal of a current car with the purchase of a new one.

[macp]

Wills2 said:

Firstly it's not funny money it's real money and the dealer is buying your part ex not VWFS. Your confusion over the process is a good advert for separating the disposal of a current car with the purchase of a new one.

I don’t mean to be rude but your reply is not entirely helpful. And a little condescending if I’m honest. Agreed it’s literally real money but I was meaning that money can be manipulated to work to fit what’s needed.

[Dan W.]

Sheepshanks said:

Dan W. said:

10 mins later the part exchange suddenly comes into conversation, No problem we can accept that but the price of the car goes back upto £10.495 minus your part exchange what have you got..... fiesta.. but customer is unhappy with me putting car back upto £10,495 well we are not going to discount a car and give you a great price for your part exchange.

There's surely got to be a better way of handling that - appearing to increase the price is never going to be well received?

We dont increase the price, just goes back to its original price before a non declare of a part exchange,

Never usually an issue, only to those who pretend they have no part exchange, agree a deal and then say we do actually want to px a car.

[macp]

Ok all understood now. We will grave the dealer a new settlement figure just before collection and they pay it off. It’s swings & roundabouts as I car will increase in mileage. The value will probably drop etc. Similarly the new car will have been bought at any pre increase price etc etc etc.

Anyway thanks all for reading and commenting if you did.