I have an Octavia VRS which I quite like, however, I don't really need the big heavy diesel ****** for day to day driving as I did 18 months ago. However, I also don't mind keeping it. But like to keep my options open.

I'm on a PCP deal which I am exactly half way through.

I got a hell of a deal and picked it up for £16k, at the end of my agreement the minimum value / final payment is £7760. Obviously the old girl, with the prices the way they are, will be worth probably around £12-13k and the miles will be around 40k. It's sitting at 27k now and should be worth £12-23k trade in, to sell on their forecourt at £14-15k. This is all a rough guesstimate with value, but there or there abouts.

However, I have been reading up about PCP's, exclusively about buying a new car mid term. Every page I've read says that the 'way it works' is that you decide you want a new car, dealer makes you an offer which 'should' pay off your old car (£10k settlement on my car) trade your old one in and start a new contract on the new one. Which sounds easy.

Is anyone in the know with this? Is this actually how it works or have I dreamt this up? What happens if the car is worth only slightly more than my car is worth? What happens if I wanted a different brand car?

PCPs and other dealer finance option are usually set up to make it  easy to move over to a new car. Doesn't really matter which brand.

 

Prices for Mk2 VRSs seem to be doing well so you should be careful that you're getting a good deal.

 

Dealer will just work out what yours is worth as a trade in and add or subtract that from the agreed price on the new one. Final payment figure will often mean you don't have much of a deposit for the new one but that's the trade off for the low payments.

Edited 22 December, 201411 yr by Aspman

Agreed. However, mine is worth £4k above the final settlement figure so a 4k deposit isn't too shabby.

The thing I worry about is what kind of deal id get if I was buying a car for £10000 if mine is worth ~£13000.

I suppose they equate the fact that they can sell it for £15000 and they've sold me a new one that I would then owe £6k+interest on.

I find it extremely confusing, so want to know the inside out before the salesman cons me.

It's really easy to swap into a new deal in a new car, provided your car is worth more that the current settlement figure. Dealer will take your car off you, payoff the finance on it and set you up on a new deal rolling any equity over as deposit on the new one.

Forget the 'final' settlement figure as this means absolutely nothing if you are trading in early.

The only thing that matters is how much the dealer will pay you for your car now. If the current settlement figure is 10k and the dealer will offer you 12k to trade in then you will have 2k deposit. The subsequent forecourt price doesn't affect you. Some dealers will offer you a great amount on trade in but then be stingy with their discount on the new motor, others will offer you a carp trade-in value but give a big discount on the new car..... So it's important to remember it's the 'cost to change' that's important. Good luck!

Sounds like scary stuff.

Are you saying that you want to trade in a car at £13K but buy a car at £10K? I can't see you obtaining much of a deal from a dealer if that is the case. Sell your car privately yourself, settle the finance and then be a 'no trade in' buyer for a replacement car may be better?

I've thought about this too. Im after ease of transaction to be honest. As long as I get my deposit back ( I will ) I'm happy to 'swap' as such. I'm pretty worried about private selling due to the fact that:

1. It's on finance and I don't understand the implications.

2. £13-14k seems a chunk to buy a car for privately, I worry I'll get the runabout buy a potential buyer.

I think it's food for thought.

I've just done this myself, traded  my Octy that had only £1k equity in it for two SEATs. PM me of you want any more of the details

I've thought about this too. Im after ease of transaction to be honest. As long as I get my deposit back ( I will ) I'm happy to 'swap' as such. I'm pretty worried about private selling due to the fact that:

1. It's on finance and I don't understand the implications.

2. £13-14k seems a chunk to buy a car for privately, I worry I'll get the runabout buy a potential buyer.

I think it's food for thought.

Swapping for another car on a another PCP is the easiest option. How much deposit did you put down on the Octy? Whether or not you get that depots 'back' depends on how much your car is worth now vs how much you still owe on it (10k).

What car are you wanting to buy? I'd suggest talking to some dealers and I think you'll find it becomes clearer.

Just think of it as two entirely separate transactions and you can't go wrong. The first is selling your car back to he dealer and the second is buying a new one.

It really isn't scary at all!

I put down £3650 all said and done on the Octy, which I assume I should get back. Think I owe £9700 or something on the finance.

Do you know what, I have no idea what car I want. Ideally I'd love a Fabia VRS, my wife insists we need all the space of th Octavia estate for 1 Christmas trip we make a year. Useful space indeed, but a necessity I think not. But you can't tell them! Fabia estate is out of the question.

I put down £3650 all said and done on the Octy, which I assume I should get back. Think I owe £9700 or something on the finance.

Do you know what, I have no idea what car I want. Ideally I'd love a Fabia VRS, my wife insists we need all the space of th Octavia estate for 1 Christmas trip we make a year. Useful space indeed, but a necessity I think not. But you can't tell them! Fabia estate is out of the question.

So you'd be looking to get 13.5k for your Octy to get the deposit back out to put down on a new car/deal.

Fabia vRS is a lot of fun. Would be a good option, why not the estate? Has great carrying capacity, arguably looks better than the hatch and will be quicker than your Octy :-)

I can't deal with the estate. Some cars suit being in estate guise (3 series, a4,a6 etc) definitely not a Fabia. Unless someone can prove me wrong.

I guess beauty is in the eye of the beholder but I like ours haha :

I've thought about this too. Im after ease of transaction to be honest. As long as I get my deposit back ( I will ) I'm happy to 'swap' as such. I'm pretty worried about private selling due to the fact that:

1. It's on finance and I don't understand the implications.

2. £13-14k seems a chunk to buy a car for privately, I worry I'll get the runabout buy a potential buyer.

I think it's food for thought.

 

You can't sell private, you don't own the car yet.

tom , (and others) swmbo has her citigo on pcp, and has done next to no miles in it, so I assume its worth more than is owed, she wants an abarth, by "scanning" the answers above, am i correct in thinking, we could go to an abarth dealership and negotiate out of the citigo? (although our local skoda dealer is fiat, they may be able to source us an abarth...) (sorry for the thread hack! lol

tom , (and others) swmbo has her citigo on pcp, and has done next to no miles in it, so I assume its worth more than is owed, she wants an abarth, by "scanning" the answers above, am i correct in thinking, we could go to an abarth dealership and negotiate out of the citigo? (although our local skoda dealer is fiat, they may be able to source us an abarth...) (sorry for the thread hack! lol

Absolutely! There is nothing tying you in to a particular brand with PCP. You can walk into the Abarth/fiat dealer and see what they will give you for the Citigo. Assuming its worth more they will then pay off your Citigo finance and roll over any spare cash from that as a deposit on the Abarth. If it happens to be worth less than the finance owed then of course you can add in a little cash to get out of the negative equity (but sounds like this wouldn't be needed).

I've swapped between manufacturers on numerous occasions. My Abarh was in a PCP when I chopped it in at BMW. Sometimes going to a different manufacturer actually results in a higher trade in offer as they don't know the market for the car you are trading in so well! :-)

It's one of the advantages of dealer finance that it is very flexible even between manufacturers and independents.

Silly question, but why would you consider a new fabia now, when the new model is around the corner?

Get your existing car remapped via Shark's sts?

That may rekindle your interest.

Re post #18

Maybe because 'Much Cheapness' can be had were you just want a VFM car,

that is on the to be discontinued model at Skoda Dealerships as they try to shift stock,

&

have you actually checked out the Engine Choice in the All New 3rd Generation Skoda Fabia?

 

Rather limited and limiting, and the full quoted Retail Prices are rather silly, some having owners of MK2's wanting a new car looking instead 

at the Facelifted Polo as being not much difference in price and maybe an alternative,

also at Hyundai or Kia among other manufacturers with possible alternatives.