To sell or not to sell?
Discussion
Hi - Could I get someone's advice?
With the immanent release of the 991 I was thinking of chopping my 997.1 in for a Gen2 S or 4S. I currently have a Basalt Black 997.1 C4S on an 06/2006 plate with 41k Miles, every extra and it's fabulous condition. My fear is that now out of warranty do i face potential garage bills of 2k next year with another 2yr service, possible clutch etc.. (tyres are all brand new) Or throw a bit more money at getting into a newer one with a 24 month warranty on a PCP agreement
One OPC said that i have £38.5k of finance left and the best they could get for my car was £27k meaning a settlement figure of £8.5k and that's before I've even sniffed at a deposit on a new one.
So, do I try and sell privately now and get much much closer to the settlement figure or if I leave it another 6 months is that settlement figure going to keep getting larger until the end of the 4 yr finance in 22 months time? What would I expect to get for this car privately? Classified would indicate about 35k if not more, i just cant believe an OPC could only come up with £27k
Some advise on damage limitation would be greatly appreciated
Thanks
With the immanent release of the 991 I was thinking of chopping my 997.1 in for a Gen2 S or 4S. I currently have a Basalt Black 997.1 C4S on an 06/2006 plate with 41k Miles, every extra and it's fabulous condition. My fear is that now out of warranty do i face potential garage bills of 2k next year with another 2yr service, possible clutch etc.. (tyres are all brand new) Or throw a bit more money at getting into a newer one with a 24 month warranty on a PCP agreement
One OPC said that i have £38.5k of finance left and the best they could get for my car was £27k meaning a settlement figure of £8.5k and that's before I've even sniffed at a deposit on a new one.
So, do I try and sell privately now and get much much closer to the settlement figure or if I leave it another 6 months is that settlement figure going to keep getting larger until the end of the 4 yr finance in 22 months time? What would I expect to get for this car privately? Classified would indicate about 35k if not more, i just cant believe an OPC could only come up with £27k
Some advise on damage limitation would be greatly appreciated
Thanks
nsm3 said:
Why will it be out of warranty - an 06 can be keep going under the OPC scheme until 2015 - getting out in this climate is only going to hurt, as your cost details show. I would extend the warranty and ride it out another couple of years - as you said, you have a great car anyway?
+1 sound advice. Cheapest option is always the current car you're in with the newer stuff. Negative equity, such as you describe, usually only occurs when someone wants out of a long term agreement early.
Depreciation is heavier when a car is newer, but is spread evenly over the projected term of the agreement. So if 5 years worth of depreciation is going to be £25k that'll be calculated at £5k per year, whereas the reality is more like 8,7,5,3,2 as the years progress. Stick to the agreement then it'll all work out fine (unless the car's nicked or written off..) but opt to come out early and you'll have to make up the shortfall.
People often get into such agreements because they're looking for the lowest monthly figure, and are then surprised that getting out of a 5 year agreement after 1 or 2 years costs them money. If they'd taken out a 2 year agreement in the first place it would have cost them more per month instead - all simple maths really, and perhaps either way is fine, but better if it's all understood when going into it, but this rarely happens because sales staff want the deal and know they'll get it if they get down to £xyz monthly payment and the customer just wants to sign on the dotted line and get into a shiny new car.
The shortfall/neg equity that you have should reduce over time rather than increase (although market forces may affect it too) - certainly getting into a newer car will mean suffering much more depreciation which will outweigh the running costs on your current car, but you'll still be in your car - if you want a newer one, get one, but it will cost you and only you can decide whether the joy it brings is worth what it'll cost.
Depreciation is heavier when a car is newer, but is spread evenly over the projected term of the agreement. So if 5 years worth of depreciation is going to be £25k that'll be calculated at £5k per year, whereas the reality is more like 8,7,5,3,2 as the years progress. Stick to the agreement then it'll all work out fine (unless the car's nicked or written off..) but opt to come out early and you'll have to make up the shortfall.
People often get into such agreements because they're looking for the lowest monthly figure, and are then surprised that getting out of a 5 year agreement after 1 or 2 years costs them money. If they'd taken out a 2 year agreement in the first place it would have cost them more per month instead - all simple maths really, and perhaps either way is fine, but better if it's all understood when going into it, but this rarely happens because sales staff want the deal and know they'll get it if they get down to £xyz monthly payment and the customer just wants to sign on the dotted line and get into a shiny new car.
The shortfall/neg equity that you have should reduce over time rather than increase (although market forces may affect it too) - certainly getting into a newer car will mean suffering much more depreciation which will outweigh the running costs on your current car, but you'll still be in your car - if you want a newer one, get one, but it will cost you and only you can decide whether the joy it brings is worth what it'll cost.
hornetrider said:
I can't fathom the finance. You have 36k outstanding after making 2 years worth of payments on a car which was 3 years old when you bought it? 08 plate C4s is low 40s so presumably was it not low/mid 40s when you bought? Can't get my head round it the figures.
Im sure your local OPC could 'explain' it to you in a way that made perfect sense.
MTR
thegoose said:
Negative equity, such as you describe, usually only occurs when someone wants out of a long term agreement early.
Depreciation is heavier when a car is newer, but is spread evenly over the projected term of the agreement. So if 5 years worth of depreciation is going to be £25k that'll be calculated at £5k per year, whereas the reality is more like 8,7,5,3,2 as the years progress. Stick to the agreement then it'll all work out fine (unless the car's nicked or written off..) but opt to come out early and you'll have to make up the shortfall.
People often get into such agreements because they're looking for the lowest monthly figure, and are then surprised that getting out of a 5 year agreement after 1 or 2 years costs them money. If they'd taken out a 2 year agreement in the first place it would have cost them more per month instead - all simple maths really, and perhaps either way is fine, but better if it's all understood when going into it, but this rarely happens because sales staff want the deal and know they'll get it if they get down to £xyz monthly payment and the customer just wants to sign on the dotted line and get into a shiny new car.
The shortfall/neg equity that you have should reduce over time rather than increase (although market forces may affect it too) - certainly getting into a newer car will mean suffering much more depreciation which will outweigh the running costs on your current car, but you'll still be in your car - if you want a newer one, get one, but it will cost you and only you can decide whether the joy it brings is worth what it'll cost.
+1Depreciation is heavier when a car is newer, but is spread evenly over the projected term of the agreement. So if 5 years worth of depreciation is going to be £25k that'll be calculated at £5k per year, whereas the reality is more like 8,7,5,3,2 as the years progress. Stick to the agreement then it'll all work out fine (unless the car's nicked or written off..) but opt to come out early and you'll have to make up the shortfall.
People often get into such agreements because they're looking for the lowest monthly figure, and are then surprised that getting out of a 5 year agreement after 1 or 2 years costs them money. If they'd taken out a 2 year agreement in the first place it would have cost them more per month instead - all simple maths really, and perhaps either way is fine, but better if it's all understood when going into it, but this rarely happens because sales staff want the deal and know they'll get it if they get down to £xyz monthly payment and the customer just wants to sign on the dotted line and get into a shiny new car.
The shortfall/neg equity that you have should reduce over time rather than increase (although market forces may affect it too) - certainly getting into a newer car will mean suffering much more depreciation which will outweigh the running costs on your current car, but you'll still be in your car - if you want a newer one, get one, but it will cost you and only you can decide whether the joy it brings is worth what it'll cost.
Thanks for everyones input
@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
Beepsquad said:
Thanks for everyones input
@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
Total cost £60480.@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
mollytherocker said:
Beepsquad said:
Thanks for everyones input
@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
Total cost £60480.@hornetrider - Here's the breakdown
Car purchase about Sept 09'
Price - £50k
Deposit - £5k
4 Yr Term @ 8%
Balloon £25k
Monthly payments Approx £635
@thegoose - Makes total sense and I completely understand, thanks for such a conscious answer. I guess they're right what the say, time doesn't help take the pain away but it helps.
Thanks
So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
mollytherocker said:
Total cost £60480.
So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
30k after 3 years and less after 4 IMHO - the formulae is a run of the mill car is worth 50% after 3 years - fact!So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
...and if you did sell the car privately you could get reasonably close to the outstanding finance. In which case getting out after a couple of years for a £5k deposit and £600 a month really isn't bad going for a car like that. People put down 2-3k and pay £400-£500 a month for people carriers/MPV type things all the time - I know someone who has done just that.
I know where I would rather my money went.
I know where I would rather my money went.
Beepsquad said:
Ahhh the price of happiness..........it's a shame Heineken don't offer financing!
If I did get £30k at the end of 4 years at least there would be equity to put against financing a newer car.
Thanks
Your being offered £27k today! I don't think theres much chance of it going up £3k in value over the next 22 months sorryIf I did get £30k at the end of 4 years at least there would be equity to put against financing a newer car.
Thanks
Hi Nano2nd - £27k was the best that an OPC could give for the car at the moment. Mollytherocker was referring to me selling the car privately at the end of the finance agreement in just under 2 years time, when hopefully there will be some equity in the car, not an £8.5k negative equity at this moment in time.
Thanks for all your input people - Its very hard to know who to turn to for advise like this, even if its just to bounce an idea around. Made my mind up now, to be honest (thegoose) has done it for me.
Thanks
Thanks for all your input people - Its very hard to know who to turn to for advise like this, even if its just to bounce an idea around. Made my mind up now, to be honest (thegoose) has done it for me.
Thanks
khushy said:
mollytherocker said:
Total cost £60480.
So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
30k after 3 years and less after 4 IMHO - the formulae is a run of the mill car is worth 50% after 3 years - fact!So assume you get 30k for it after 4 years, thats 30k depreciation over 4 years. Pretty sobering on the purchase of a 3 year old car.
MTR
Beepsquad said:
If I did get £30k at the end of 4 years at least there would be equity to put against financing a newer car.
Why would you want to get into the same situation again though ? It's never ending with financing fast depreciating asset at very high interest rates.£600 odd quid a month depreciation/finance is more than 3 times my depreciation+loss of interest budget on a (humble) 987. I hope you're having 3 times the fun though !
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