I went to my local seat dealer today and got a quote for trading in my 75ps elegance 3dr...... "I have spoken to our dealer manager and we can offer you £500 towards your trade in.......so you will only owe £2k " well my face fell to the floor! I am 2 years into a 3 year pcp and done 27k they (and glass guide) reckoned my car was only worth 5k! at what point "should" a Citigo on pcp equal out? Either the depreciation must stop after 2 years or the final settlement is far to high!

What sort of trade in have others had?

My car does have a lot of options but didn't think it made that much difference?

we changed our citigo for i10 and my fabia GLII for an i20 in march

 

was a elegance greentech 75PS, with pretty much all the options, at 18 months in we were told glasses price was 8k which was close to the figures I had researched (original price was about 11.5k if memory correct) we owed about 8.9k on the pcp

 

if I remember correct the pcp gmfv figure was around £4500 after 42 months at 12,000 miles / year

 

to get the deal done Hyundai offered 9k which gave use just over £100 equity and various other offers we got the car for about £170/month 

 

my GLII at 33 months into a 42 month pcp I had about £500 equity, at about 2 1/2 -3 years you seem to come out of negative equity on a fabia, so if the citigo is the same it is about 70-75 percent of the way through a PCP

 

all of this depends on the level of deposit you put in initially, lower deposit = longer to come out of negative equity

 

bottom line to me the fabia 2 residuals are about right, citigo to me seem £500 high

I think vag overestimated the residuals on the citigo, up,and mii. I doubt you'll be anywhere near equity even after the pcp is up.

I had my 63-plate sport (15k) valued the other week and that was £5500 which as it stands that's means I am about a month away from being in equity....if it doesn't lose any more money [emoji52] but i put my old car as a deposit (£2300) that's the only reason I'm almost in equity!! [emoji19][emoji53]

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Looks like I may have to hand it back at the end with no equity then :( as in the next 18 months it can only depreciate by £800 to meet the gmfv

What was your gmfv on your sport? I put a reasonable £750 deposit down for mine so was expecting about that back in equity at the end

Edited 12 September, 201510 yr by masserator

I think the gmfv is around £4500....

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Sounds about right... GMFV is around 4.5k for my sport at 42 months..

 

For those who took out the 0% offer with no deposit (me included) will be lucky if there is any equity in the car at the end. Im just about 2 years in and still owe 7.5k.. my car was also valued at 5.5k

 

Whatacar seem to think that the car will be worth just under 4k at the 4 year mark 

Had this confirmed by dealer that citigo's about the same age as mine are worth less than the gmfv. As has been suggested I will have to vt the fiancé when I wish to change :( bit of a shame as has been a good car and was hoping for some equity to upgrade. Hopefully skoda has sorted this with newer pcp's!

The same on mine 60bhp with just under 23k on the clock. Finance is more than the car is worth. It's swings and roundabouts with PCP's though.

 

I made this comment at the beginning of the year that the GFV will not be as much as Skoda suggests and that it will be worth less than the final payment.

 

On the plus side give it a couple more years and the Citigo's will be a bargain to buy second hand!!

 

Just for info, WBAC value which to be honest is fairly close to what dealers have been giving as P/X is £4850

On the plus side, the mileage charge is only 4.4ppm - so £44 per 1k miles over the agreed figure.. other marques mileage charges are more like 15ppm!

 

Does anyone know how to go about doing a VT? - something about when half the value of the car is paid or something?

I went to my local seat dealer today and got a quote for trading in my 75ps elegance 3dr...... "I have spoken to our dealer manager and we can offer you £500 towards your trade in.......so you will only owe £2k " well my face fell to the floor! I am 2 years into a 3 year pcp and done 27k they (and glass guide) reckoned my car was only worth 5k! at what point "should" a Citigo on pcp equal out? Either the depreciation must stop after 2 years or the final settlement is far to high!

What sort of trade in have others had?

My car does have a lot of options but didn't think it made that much difference?

Just sold my Citigo Elegance (on a 63 plate) with 45500 miles and every possible option ticked on it for £5050 to a dealer as a trade-in.

Edited 14 September, 201510 yr by Professor

On the plus side, the mileage charge is only 4.4ppm - so £44 per 1k miles over the agreed figure.. other marques mileage charges are more like 15ppm!

 

Does anyone know how to go about doing a VT? - something about when half the value of the car is paid or something?

 

I believe you have to contact them directly. It doesn't/shouldn't harm your credit rating but it could effect future car purchases through PCP......this is taken from advice I read on Money advice forums.

 

The VT value should be written into the PCP agreement if you read through it.

 

If I find my agreement later and remember I will quote the exact wording. 

I wonder if in 2017 when the tax on new citigos will be £140, older greentech £0 ved models will attract a better price ( especially in London where they are not liable to the congestion charge ) ?

Assuming nothing happens to wreck the car's value, and I intend to trade it in at the end, with 0% I reckoned I'd still be better off making smaller payments to VWFS and putting what I'd otherwise have paid into savings where it'll earn interest for me. Of course it's basically installments and the total amount has to be settled one way or the other, so it's ultimately down to the value at part-ex time -- and maintaining the savings discipline to absorb any equity shock. Gonna have to make a deposit for the next one either way. But I'm reckoning in my case, as the debt accrues no interest, that the less in their hands the better.

Edited 19 September, 201510 yr by ettlz

Well I was in my local Skoda dealership today - looking at the offers on a Fabia SEL and Ibiza Connect.

 

Long story short - despite best efforts by sales, no deal could be done, as the value of my Citigo sport (2yr old, 15000 miles) is £4200 already!.

Basically the sales manager said, the best option is to wait another 12 months to get to the 50% mark and then VT the car - as it looks like the residuals definitely will not be holding up!

I recently bought a 64 plate Elegance 75ps 3 door with only 1,700 miles on the clock for £6,600 from a Skoda franchise. I reckon I may have got a bit of a bargain but at those kind of retail prices you can kind of see why trade in values for three year old cars might be a lot lower.

I can't believe how bad the residuals are on these cars and skoda may well lose a lot of business once the pcps end.

Go to vw, at the minute they are desperate to shift cars after all the bad press. The missus had a polo on a pcp and was only 2 years into it so loads of neg equity. They over valued her car by 2.5k to cover the neg equity and give her 500 as a deposit on a new one then gave her a 1000 loyalty bonus and 1000 deposit and then gave us an 8% discount on a new polo with a tsi engine.

Skoda can't do anything. I'll be lucky if my citigo sport is worth 2k when the pcp is up! VW reckon that ups values are the same as citigos but VW will try to give you some equity so you will buy another VW. Skoda don't care that you'll go elsewhere??

I can't believe how bad the residuals are on these cars and skoda may well lose a lot of business once the pcps end.

Go to vw, at the minute they are desperate to shift cars after all the bad press. The missus had a polo on a pcp and was only 2 years into it so loads of neg equity. They over valued her car by 2.5k to cover the neg equity and give her 500 as a deposit on a new one then gave her a 1000 loyalty bonus and 1000 deposit and then gave us an 8% discount on a new polo with a tsi engine.

Skoda can't do anything. I'll be lucky if my citigo sport is worth 2k when the pcp is up! VW reckon that ups values are the same as citigos but VW will try to give you some equity so you will buy another VW. Skoda don't care that you'll go elsewhere??

 

I may go down for a mooch.

As it stood, I got the figures on a Ibiza "Connect" TSI 90 Which is basically Fabia SE with the Nav system.. and even with a total "discount" of 4200, (1200 off + 3k deposit contribution) couldnt get reasonable figures. The best they could have done was me putting in £1500 to be able to VT the Citigo. 

Although its interesting seeing the figures, the Ibiza GFV was just over 4k, whilst the Fabia SEL i was looking at was 6.6k (so seat must have to use a big deposit contribution to offset the GFV)

Just been contacted by the Skoda dealer that I bought the Citigo from. Skoda are now offering loyalty bonus, further discounts and up to 42 months 0% finance. Sounds like they are as desperate to shift cars as the VW dealers.

Looks like I'll hand mine back after 3 years then. Gives me an excuse to buy a Focus RS though so not all bad. I feel for people who buy big expensive luxury cars who lose £15k in a year. At least the citigo is cheap to begin with.

Looks like I'll hand mine back after 3 years then. Gives me an excuse to buy a Focus RS though so not all bad. I feel for people who buy big expensive luxury cars who lose £15k in a year. At least the citigo is cheap to begin with.

amen brother! we've got the citigo and a yeti at the moment and tbh ill probably be handing them both back at the end of the terms, and leasing 1 car for the missus and ill go back to buying 2nd hand.

 

the amount of depreciation is frightening.

I really wouldn't be worried about negative equity if you are locked into a PCP.

 

VT the car at 50% paid isn't the worst idea if there is lots of negative equity, and although it won't affect your credit rating, it may make the finance provider less likely to accept you in the future.

 

The negative equity now just means you got a good deal on the GMFV really, hence you've paid less in depreciation over the term than the car actually depreciated. Result in my eyes!

 

Oh, and hi Colin

Edited 30 November, 201510 yr by Tom_vRS

Does anyone have a figure for the average percentage difference between the finance GMFVs and trade-in prices for Citigos at the moment?
 

Edited 30 November, 201510 yr by ettlz

I agree with VRS Mike that the Citigo is cheap to run compared to most cars - we are paying about £6k over the three years to drive a new car with minimal deposit and small payments and then hand it back - guaranteed. That's got to be a good thing. I understand that Recarouk may want to hand his back and buy second hand. You are always better off financially buying 1 year old cars than new. However, if you want virtually no deposit and 0% finance and to keep your own money in your bank and drive a new car, I think PCP has its advantages. I also agree with Tom_vRS about not worrying too much about negative equity. Dealers never want to offer too much, especially if your car is high mileage. If you pay a small deposit and monthly payments and then want to trade in early, the fact that the vast majority of depreciation is in the first year will always be a problem. This can typically be £4k in year 1, then just £1k in years 2 and 3. I don't know how the Citigo will turn out in all this over the next 3 years but it seems to be no worse than average and much less than a more expensive car anyway. Plus, if you can hold on to the end, you are at least guaranteed a future value by VW Finance and not a dealer you might then be trying to do a deal with. The excess charge for high mileage is also about a third of many manufacturers, as Neo_VR also mentioned.

However, if you want virtually no deposit and 0% finance and to keep your own money in your bank and drive a new car, I think PCP has its advantages. I also agree with Tom_vRS about not worrying too much about negative equity.

I guess in some way you're trading interest rate for possible loss at trade-in, but I think the overall cost-of-ownership over the whole finance period is the thing to consider. The Citigo is one of the less-expensive cars to run and if you get things like servicing thrown in with the finance, all the better. But at the end of the day, 0% PCP is just interest-free money that you've got to pay back one way or another (modulo handing the thing back).

Edited 1 December, 201510 yr by ettlz