PCP early trade in

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A4 cabrio

Original Poster:

903 posts

159 months

Tuesday 13th February 2018
quotequote all
I'm just approaching 2 years into a 4 year PCP agreement on a Golf GTD & the other day I got a VIP invitation (I know I know) to a "special" sales event at the dealer I used to get the GTD from. Recent additions to the family, a baby & a dog, mean that I could do with something bigger & have been looking at a used Touareg as a possible next car.

Now the thing is am I likely to get shafted on the GTD come trade in price?? I'm not interested in going ahead if I owed money on top to clear the finance on the GTD, I've seen a Touareg which I could be interested in at 27k, would it be realistic to get it for 25-25.5k?? Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?

I've got someone from the dealer phoning me tomorrow & am just hoping I could have some info before I talk to him

Rabond

43 posts

80 months

Tuesday 13th February 2018
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You can end a PCP agreement early by settling the remaining finance - there will likely be a small admin fee for doing so. You just have to have made a minimum amount of payments I believe (can’t remember how many of top of my head) before you can settle.

Phone up the finance company directly and ask for a settlement figure then you’ll know how much you’ll need to pay. As you are only a couple of years in you might still find you have some equity in the car after settling the finance esp if you’ve done under the quoted mileage, but if you’ve gone over the mileage limit you’ll most likely have to pay an excess mileage fee.

I ended my 4 year pcp deal recently 3 years in toa 4 year agreement - in the end I decided to sell the car privately and got a fair bit more than what the dealer were offering and I was buying another one from them - also didn’t have any issues with excess mileage / vehicle inspection on return etc.. so you may find that a better route. Of course selling privately comes with its own hassle but may be worth it if you can get a decent amount more!

Rabond

43 posts

80 months

Tuesday 13th February 2018
quotequote all
Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?
[/quote]

You might Have some luck negotiating the used APR rate as they are set by the dealer or dealer group, rather than nationally by the manufacturer/finance company...

Patch1875

4,894 posts

132 months

Tuesday 13th February 2018
quotequote all
Used car PCP is very expensive you could get a bank loan for 3%

If you haven't put in a chunky deposit I'd imagine you will nowhere near I had a GTi on a no deposit £320 a month deal was about 3 years 3 months before I could get out without a hit.

Rabond

43 posts

80 months

Tuesday 13th February 2018
quotequote all
A useful article here on settling pcp early

https://www.parkers.co.uk/car-finance/advice/2016/...

A4 cabrio

Original Poster:

903 posts

159 months

Tuesday 13th February 2018
quotequote all
Patch1875 said:
Used car PCP is very expensive you could get a bank loan for 3%

If you haven't put in a chunky deposit I'd imagine you will nowhere near I had a GTi on a no deposit £320 a month deal was about 3 years 3 months before I could get out without a hit.
I knew pcp on a used car wasn’t a great idea so was going to HP this one, going to look into a Halifax car loan service they do, 3.4%

I put a 5k deposit down on the PCP car, gonna give be a call in the morning & get a settlement figure

A4 cabrio

Original Poster:

903 posts

159 months

Tuesday 13th February 2018
quotequote all
Rabond said:
You can end a PCP agreement early by settling the remaining finance - there will likely be a small admin fee for doing so. You just have to have made a minimum amount of payments I believe (can’t remember how many of top of my head) before you can settle.

Phone up the finance company directly and ask for a settlement figure then you’ll know how much you’ll need to pay. As you are only a couple of years in you might still find you have some equity in the car after settling the finance esp if you’ve done under the quoted mileage, but if you’ve gone over the mileage limit you’ll most likely have to pay an excess mileage fee.

I ended my 4 year pcp deal recently 3 years in toa 4 year agreement - in the end I decided to sell the car privately and got a fair bit more than what the dealer were offering and I was buying another one from them - also didn’t have any issues with excess mileage / vehicle inspection on return etc.. so you may find that a better route. Of course selling privately comes with its own hassle but may be worth it if you can get a decent amount more!
Mileage wise I’m 1000 miles over my allowance so that shouldn’t be a minor problem, I’m going to phone VW in the morning & get a settlement figure before I speak to a dealer about a Touareg, I’d imagine he’d be able to give me a trade in price for mine over the phone, hope so as I dont fancy a trip to the dealer if it’s a non starter from the very beginning.

Thanks for the link you posted, very useful

Rabond

43 posts

80 months

Tuesday 13th February 2018
quotequote all
No problem, glad it helped.

Dealer should be able to give you a trade in price over phone, but expect they’ll want to see it before giving a final offer.

Check out webuyanycar too as they are actually giving good values at moment so should give you a reasonable indication

ForzaGilles

558 posts

224 months

Wednesday 14th February 2018
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Rabond said:
Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?
You can do better than that, here http://www.capitalcarfinance.co.uk/ 5.9%


Edited by ForzaGilles on Wednesday 14th February 11:21

missing the VR6

2,323 posts

189 months

Wednesday 14th February 2018
quotequote all
A4 cabrio said:
I'm just approaching 2 years into a 4 year PCP agreement on a Golf GTD & the other day I got a VIP invitation (I know I know) to a "special" sales event at the dealer I used to get the GTD from. Recent additions to the family, a baby & a dog, mean that I could do with something bigger & have been looking at a used Touareg as a possible next car.

Now the thing is am I likely to get shafted on the GTD come trade in price?? I'm not interested in going ahead if I owed money on top to clear the finance on the GTD, I've seen a Touareg which I could be interested in at 27k, would it be realistic to get it for 25-25.5k?? Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?

I've got someone from the dealer phoning me tomorrow & am just hoping I could have some info before I talk to him
As a former VW salesman and current car salesman I'd be seriously surprised if you'd get that much of a used Touareg. I'd say you'd be lucky to get £500.

mcg_

1,445 posts

92 months

Wednesday 14th February 2018
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missing the VR6 said:
As a former VW salesman and current car salesman I'd be seriously surprised if you'd get that much of a used Touareg. I'd say you'd be lucky to get £500.
Based on my experience of buying an approved used, I'd say the same.

A4 cabrio

Original Poster:

903 posts

159 months

Wednesday 14th February 2018
quotequote all
Been trying to sort my settlement figure on line all morning but for some reason it won't process. Postman come a while ago & there's a letter from VWFS with a statement in it, currently I owe £18,636 which I assume is including interest, a rough estimate of the interest is about £1500 I think so I'm guessing a settlement figure of around £17k, which I think would leave some negative equity, so as it stands I'm gonna stay with the GTD for a while longer.

As for the call I've been waiting for from the supplying dealer, I'm still waiting which isn't really a surprise, they said they'd phone at 10am this morning.

Patch1875

4,894 posts

132 months

Thursday 15th February 2018
quotequote all
A4 cabrio said:
Been trying to sort my settlement figure on line all morning but for some reason it won't process. Postman come a while ago & there's a letter from VWFS with a statement in it, currently I owe £18,636 which I assume is including interest, a rough estimate of the interest is about £1500 I think so I'm guessing a settlement figure of around £17k, which I think would leave some negative equity, so as it stands I'm gonna stay with the GTD for a while longer.

As for the call I've been waiting for from the supplying dealer, I'm still waiting which isn't really a surprise, they said they'd phone at 10am this morning.
Phone them up sure it's an automated service for settlements.

fourstardan

4,270 posts

144 months

Thursday 15th February 2018
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Depends on what the dealer is like.

Had this rigmarole on my A4 last year when 3 years in on a 4 year deal.

I used to go shopping around at about 75% in, getting tempted by the offers you got,

When i went down "for a look" the dealer wasn't willing to help incentivise me with decent offers for the car so I gave them the finger and VT'd it, dealer even said do this. You won't be able to do this on 2 years in of a 4, more likely sometime next year.

My prediction is don't be surprised you'll be paying a lot more for a tig in my view as they'll play with the figures.

missing the VR6

2,323 posts

189 months

Thursday 15th February 2018
quotequote all
A4 cabrio said:
Been trying to sort my settlement figure on line all morning but for some reason it won't process. Postman come a while ago & there's a letter from VWFS with a statement in it, currently I owe £18,636 which I assume is including interest, a rough estimate of the interest is about £1500 I think so I'm guessing a settlement figure of around £17k, which I think would leave some negative equity, so as it stands I'm gonna stay with the GTD for a while longer.

As for the call I've been waiting for from the supplying dealer, I'm still waiting which isn't really a surprise, they said they'd phone at 10am this morning.
The dealer will be able to get you a settlement figure in about 2-3 minutes, if you call them or drop in.

va1o

16,032 posts

207 months

Thursday 15th February 2018
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It shouldn’t be complicated; VWFS provide the settlement figure (based on outstanding payments) and the dealer can tell you their PX valuation for the car. Hopefully the PX figure is greater or equal to the settlement figure!

Lucas Ayde

3,557 posts

168 months

Thursday 15th February 2018
quotequote all
I would assume that if your PCP car was purchased from the dealer you are proposing to get the new one from, they'd smooth over the paperwork for you and just make you an upfront offer that included any costs associated with your old motor.

If the old PCP deal is nearing its end then why not just wait until closer to the time and shop around then for something you can pick up when you (presumably) hand the old car back. There will always be deals to be had, these 'sales events' are nothing special.

A4 cabrio

Original Poster:

903 posts

159 months

Thursday 15th February 2018
quotequote all
So my settlement figure is £17,251 & the CAP guide price is £14k to £16.4k, seems like I’ll be keeping the GTD for a while longer.