I got my 1.4 on a 3 year interest free PCP, trading in my previous Mk. 2 as part of the initial deposit.

When the 3 years finishes, how does the deal work, for example if I wanted to trade in the present car for another new one, instead of paying the lump sum to keep the present car longer?

I.e. how do they "value" the end-of-PCP car against the new one, especially if on a similar scheme? (It will be low mileage at the 3 year mark, about 15000)

Does the present car act as a normal trade in/deposit, (with or without cash added) followed by a similar monthly repayment on the new car?

 

 

This might help

 

http://www.briskoda.net/forums/topic/386997-ive-messed-up/

You know what your final payment is, so either they will offer you more or less than that. You can then agree a deal and add more deposit if you want/need to.

Or refinance the final payment, keep the car.

Or hand the car back.

Don't forget, you do not have to buy a Skoda. You can trade your car in where ever you want and provided the trade in value is greater than the balance outstanding you will have equity to buy a new car from that dealer and they will pay off the finance.

Oh, and I am sure that once you are in the final year of your current agreement, and definitely the final six months, your supplying dealer will be in touch about a new car

Pretty sure that by asking that question your original salesperson failed you in your purchase as they did not make sure you understood what happens at the end!

They will value the car, if the valuation is more than your guaranteed final value(you must have been told this!) they will pay off the gfv and whatever is left is yours to spend on a new car.

You know what your final payment is, so either they will offer you more or less than that. You can then agree a deal and add more deposit if you want/need to.

Or refinance the final payment, keep the car.

Or hand the car back.

They can't offer you less - that is what the Guaranteed bit is all about ....

They can't offer you less - that is what the Guaranteed bit is all about ....

If you don't buy another Skoda, other garages can offer you what they want, which might be lower than the GMFV.

If you want to exchange it, then any excess value above guaranteed min (if any) is effectively available for a deposit

as an example, if GMFV is £6000, they value as £6700, then you have £700 towards your deposit

however if the car was valued at only £5500, you would still get the £6000 min, but would be no money (rather than you owing them £500), this allows you to just hand it back owing no more.

If you don't buy another Skoda, other garages can offer you what they want, which might be lower than the GMFV.

 

At which point you just hand the car back, so makes no difference.

The salesperson has a legal duty to have explained this to you and given you a copy of documents explaining this.

They also have to give you a form to sign, which says they have explained it.

 

Sounds like your salesperson didn't do what they have to and you may have signed a form without fully reading it.

 

On the other side of things, if you're happy with everything and you were just asking for confirmation, hopefully you'll enjoy the car when you get it

Edited 4 April, 201610 yr by cheezemonkhai

There is the possibility that the OP just nodded, smiled and signed. It happens, all to frequently.

If you don't buy another Skoda, other garages can offer you what they want, which might be lower than the GMFV.

So you don't trade in, you just hand it back to Skoda...........

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I am still of the opinion that the O3 GFVs are overstated.

The best course of action is probably to hand back then negotiate full discount on a no trade in deal. VT at the 50% mark looks even more promising to me.

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There is the possibility that the OP just nodded, smiled and signed. It happens, all to frequently.

No, I understand the deal in the sense that if I want to keep the car I pay a lump sum, and in this particular deal it would work out that the lump sum, plus all my monthly payments till then, plus my original deposit and trade-in of my previous car, all added up to exactly the list price, so effectively 0% interest, though admittedly no particular discount.

What my post was getting at is IF there is a good (e.g. zero interest) deal going when my 3 years is up, I wondered how they balance what the car is worth, and what I would have had to pay to keep it, against in effect trading it in for the same sort of car again from new.