Aston PCP - Car worth £18k less than GFV
Discussion
Hi Guys,
My 2 year PCP deal on DB11 coming to end in July. Balloon payment / GFV is £93.5k however car only worth £78k as a trade in now which will be further down by July. I am not really worried as its finance company's issue not mine.
But i like the car and i would like to keep it however i am not going to pay the £93.5k balloon for a car worth £75k to trade in. Similar ones retail around £82k now from main dealers with 1 year warranty etc.
Has anyone been offered to buy the car at the end of PCP under the GFV/Ballon? Its from Aston financial services but it is BMW/Alphera. I called them but they said they can only comment in last 30 days of the deal..
My 2 year PCP deal on DB11 coming to end in July. Balloon payment / GFV is £93.5k however car only worth £78k as a trade in now which will be further down by July. I am not really worried as its finance company's issue not mine.
But i like the car and i would like to keep it however i am not going to pay the £93.5k balloon for a car worth £75k to trade in. Similar ones retail around £82k now from main dealers with 1 year warranty etc.
Has anyone been offered to buy the car at the end of PCP under the GFV/Ballon? Its from Aston financial services but it is BMW/Alphera. I called them but they said they can only comment in last 30 days of the deal..
AdamC28 said:
I attempted to negotiate with BMW at the end of my PCP and they wouldn’t budge.
The difference between the GFP and trade in was around £4k.
There were stories around of BMW making offers to people to keep cars in the 2008 global financial crash. But if it starts becoming known that you can negotiate to buy the car regardless of GFV than that's a whole can of worms for the PCP business model.The difference between the GFP and trade in was around £4k.
Sheepshanks said:
There were stories around of BMW making offers to people to keep cars in the 2008 global financial crash. But if it starts becoming known that you can negotiate to buy the car regardless of GFV than that's a whole can of worms for the PCP business model.
My experience was in early 2018.I agree about the can of worms, it's rare now but cars can be in positive equity come GFV point.
Thanks for reply guys, i understand one should not expect to negotiate at the end of the deal to buy the car by making lower offer etc. And i believe in most cases car's retail value will be higher than GFV so you would be happy to pay the gfv if you want to keep it.
I am just thinking how finance company will get rid of it. Exactly same spec and mileage available at the main dealers for £82k now as approved used. Whether they send to auction or offer it to traders direct there is no way someone will pay the GFV of £93.5k for it.
I am just thinking how finance company will get rid of it. Exactly same spec and mileage available at the main dealers for £82k now as approved used. Whether they send to auction or offer it to traders direct there is no way someone will pay the GFV of £93.5k for it.
sideways sid said:
Surely Aston would keep it within the dealer network and retail as approved used.
As the agreement is with the finance company I think if you hand it back at the end it’s down to them to dispose of it, which will probably be to the highest trade bidder and may or may not be AM.It’s an interesting question from the OP though as it must happen sometimes.
sutoka said:
Would love to see a breakdown of costs on a DB11 over 2 years. Imagine a substantial deposit.
Not necessarily, it depends on what you want the monthlies to be and if you are buying new or used, either way it won’t be cheap in most people’s eyes.From memory we were quoted around £28k in and £1,500 per month on a new one a few years ago.
For whatever reason, manufacturers/finance co's don't seem to work logically when it comes to PCP and lease returns, but it obviously works for them.
I had a BMW on lease a few years back. At the end of the term they offered to sell it me, cash, for more than I could walk into a dealer and buy the equivalent car for with lower mileage and warranty.
I had a BMW on lease a few years back. At the end of the term they offered to sell it me, cash, for more than I could walk into a dealer and buy the equivalent car for with lower mileage and warranty.
sutoka said:
Would love to see a breakdown of costs on a DB11 over 2 years. Imagine a substantial deposit.
It was cracking deal and i knew car would worth much less than GFV they gave me at the time. Although holding deposit was paid and car was in prep i was worried they will come up and say they made a mistake and refund the deposit...So its 06/2017 Launch Edition car. I bought it 07/2019, it had £7k miles and 1 owner from new. It was with HWM for £101.5k. I was looking for cash purchase but salesman quoted 2 year PCP 8k miles per annum £93.5k GFV and i was shocked...
So i paid £8k deposit, and £450 for 23 months at %5.9 APR. I negotiated to get 1 year warranty extension from 06/2020 to 06/2021 thrown in as well so it meant it will have full warranty during my 2 year ownership. As they come with 5 year free servicing so noting to worry on that neither.
I put on 4 new MP4S tyres at cost around £750 but no other expense. It is just over 20k miles now i absolutely love it. It just does everything perfectly for me.
Thanks for all suggestions guys what i am reading is they wont budge on price to sell me directly at the top trade price CAP Clean but they incur additional cost and admin by taking it BCA only to get bids less than my offer..
I used Flipping Cars before to buy a nearly new Merc from auction for me so if i cant find anything i like, i will track it down buy it from auction if ends up there. Warranty will be expired by then and i will probably need to take it through inspection and put warranty on it again.
I used Flipping Cars before to buy a nearly new Merc from auction for me so if i cant find anything i like, i will track it down buy it from auction if ends up there. Warranty will be expired by then and i will probably need to take it through inspection and put warranty on it again.
memzyy said:
Thanks for all suggestions guys what i am reading is they wont budge on price to sell me directly at the top trade price CAP Clean but they incur additional cost and admin by taking it BCA only to get bids less than my offer..
I used Flipping Cars before to buy a nearly new Merc from auction for me so if i cant find anything i like, i will track it down buy it from auction if ends up there. Warranty will be expired by then and i will probably need to take it through inspection and put warranty on it again.
Good luck, hope you can track it down, lovely cars I can see why you want to keep it.I used Flipping Cars before to buy a nearly new Merc from auction for me so if i cant find anything i like, i will track it down buy it from auction if ends up there. Warranty will be expired by then and i will probably need to take it through inspection and put warranty on it again.
memzyy said:
It was cracking deal and i knew car would worth much less than GFV they gave me at the time. Although holding deposit was paid and car was in prep i was worried they will come up and say they made a mistake and refund the deposit...
So its 06/2017 Launch Edition car. I bought it 07/2019, it had £7k miles and 1 owner from new. It was with HWM for £101.5k. I was looking for cash purchase but salesman quoted 2 year PCP 8k miles per annum £93.5k GFV and i was shocked...
So i paid £8k deposit, and £450 for 23 months at %5.9 APR. I negotiated to get 1 year warranty extension from 06/2020 to 06/2021 thrown in as well so it meant it will have full warranty during my 2 year ownership. As they come with 5 year free servicing so noting to worry on that neither.
I put on 4 new MP4S tyres at cost around £750 but no other expense. It is just over 20k miles now i absolutely love it. It just does everything perfectly for me.
A fantastic example to show those on other PH threads who insist cash is king, finance is only for those who can't afford a car and a PCP is 'Perpetual Car Prison'.So its 06/2017 Launch Edition car. I bought it 07/2019, it had £7k miles and 1 owner from new. It was with HWM for £101.5k. I was looking for cash purchase but salesman quoted 2 year PCP 8k miles per annum £93.5k GFV and i was shocked...
So i paid £8k deposit, and £450 for 23 months at %5.9 APR. I negotiated to get 1 year warranty extension from 06/2020 to 06/2021 thrown in as well so it meant it will have full warranty during my 2 year ownership. As they come with 5 year free servicing so noting to worry on that neither.
I put on 4 new MP4S tyres at cost around £750 but no other expense. It is just over 20k miles now i absolutely love it. It just does everything perfectly for me.
soxboy said:
A fantastic example to show those on other PH threads who insist cash is king, finance is only for those who can't afford a car and a PCP is 'Perpetual Car Prison'.
They'll just say it's fake news.No way will you sway them from their insistence that financing/leasing is for idiots, losers, show offs and the poor.
soxboy said:
A fantastic example to show those on other PH threads who insist cash is king, finance is only for those who can't afford a car and a PCP is 'Perpetual Car Prison'.
I was actually big advocate of cash is king and always been against financing a car. When salesman mentioned quoting a PCP i was like interest is too high, not interested bla bla. Such a silly short sighted view. I am glad i let him to do it in the end. Yes i am paying £450 interest a month but including it overall ownership costed much less as opposed to cash purchase.Also the £93.5k i was left in the bank i have invested into property which is bringing much much higher return than the £450 a month i am paying in interest.
The joy of not allowing anyone to pull your trousers down in part ex/trade in just adding to the pleasure of the ownership.
Sadly this sort of deals doesn't come along always and if i think cash purchase will work out better on the next car then it will be cash but i have an open mind now
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