PCP 4 years- trade in after3?

[Catann74]

Hi- first time posting.

Have a golf on a 4 year pcp- never done pcp before.

Love the golf- don’t mind keeping it for another year but vw have offered a deal on a t roc- again love the car.

The offer On the t roc is- the golf plus £2350- keep payments of £209 per month- 48 months.

I am in 2 minds to change or not.

From pcp experience, would we have more equity in car if we kept it for the full 4 years- the settlement is £7k.

Thanks

[Roller89]

It depends on a few things - what deposit did you put into the Golf? Are you within the contracted mileage? I guess it has a full VW service history?

What is the valuation of your current car? Have a look at the CAP valuation of your existing car and compare it with their valuation.

It is your decision, but was this an unsolicited sales call? If so, it sounds like they're attempting to generate used car stock.

[Rojibo]

Particularly interested in this because my other half is after a T-Roc and I’ll end up doing the negotiating.

With regards to your current car, you can log into VWFS online now, and use your agreement number/info to get a settlement figure straight away. This is usually the remaining balance of the loan less any future interest. Compare the settlement figure with what the VW garage are offering you.

Also worth checking on valuation sites to see what equity you have, if any, to work out if the deal from VW is good.

The deal we’re looking at is £3k down, £270 for 47 months, 1.5 SE. I think I can get them to do better than that however.

Edit, sorry. Seen you’ve already got a settlement figure. What’s the valuation on the car from the likes of WBAC, Arnold Clark?

[Catann74]

Thanks for reply- it was not a cold call- I phoned them.

We are within the 10k a year mileage, full vw service history.

I think the initial deposit was around £1700- car cost £17k

Car is now worth around £10,500

They have not given a figure for the golf- it’s to change and that would be £2350.

Have phoned a few dealerships and it is a good deal.

However I am not sure if pcp is better if you keep the car for the full 4 years- do most cars have equity in them?

Thanks

[Nickbrapp]

Of course you’ll have more equity after 4 years, you’ve Made another years worth of payments

If they want £2350 to change now, that’s almost the same as just paying another 12 months of £209 on your PCP.

You only get equity because you’ve already paid more for the car than it’s depreciated

Have you tried a t roc? Its slightly smaller than the golf, but has the interior from a polo so it’s actually a worse car personally

Personally if I wasn’t that fussed on changing I would just keep the golf.

[AudiMan9000]

I traded my old Audi Q3 in for a new Audi Q3 early at 35 months into a 48 month PCP.

I was at that point about £400 in positive equity.

However, at rival BMW, they told me I was in negative equity.

[Rojibo]

anothernameitist said:

Pay cash bone of this rubbish.
Credit any one can get it only.winner vwfs

Catann74 said:

Thanks for reply- it was not a cold call- I phoned them.

We are within the 10k a year mileage, full vw service history.

I think the initial deposit was around £1700- car cost £17k

Car is now worth around £10,500

They have not given a figure for the golf- it’s to change and that would be £2350.

Have phoned a few dealerships and it is a good deal.

However I am not sure if pcp is better if you keep the car for the full 4 years- do most cars have equity in them?

Thanks

So they want the car off you and £2350 of your cash to change? Shouldn’t you have £3k of equity in the golf itself? Not adding up there for me.

What do the likes of WBAC offer on your golf for comparisons sake? And what’s the list price of the car you’re being offered?

[Catann74]

The valuation from wbac is £10,640- the settlement is £9362.

They are giving us just over a grand for the golf.

We would need to put in £2350- monthly payments of £209, 10k mileage, 48 months with a payment break of 3 months on initially.

Having not done Pcp before I don’t know if it’s best to wait for 4 years- the balance then would be £7k.

I am not sure if there would be much equity in the car given that they are £10.500 now- how much would it depreciate?

[Rojibo]

It’s usually always going to be cheaper to keep the car you’ve already got, as it will depreciate less in the remaining year. I’d estimate you’d have about another £1k of equity in a years time.

Financially, the better decision is to keep the golf and pay it off at the end of the term.

If you fancy the new car, go for it, beat them up a bit on the deal though. As another poster said, it looks like they’re looking for used stock to sell on.

[Catann74]

The valuation from wbac is £10,640- the settlement is £9362.

They are giving us just over a grand for the golf.

We would need to put in £2350- monthly payments of £209, 10k mileage, 48 months with a payment break of 3 months on initially.

Having not done Pcp before I don’t know if it’s best to wait for 4 years- the balance then would be £7k.

I am not sure if there would be much equity in the car given that they are £10.500 now- how much would it depreciate?

[Catann74]

Thanks for replies- we are happy with golf- After reading replies I think we should keep it.

I am defiantly not a PistonHead- so long as it works, has air con- I am happy! just looking for the best decision financially

Catherine