PCP query

[TheInsanity1234]

Hello folks.

As you know, I've got my new Citigo, and I'm financing it using a PCP.

I noticed on the papers, it's got a final agreed value of £3800 or thereabouts. I know that the value would be how much I'd have to pay to keep the car at the end of the agreement, but I was wondering, is that also how much the car would be worth if I traded it in against another car, or is that going to be subject to market conditions and how kind the dealer is feeling that day?

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[Markyg]

The actual value of the car will be determined by market conditions and will definitely be worth less than that. If that's the case and you want another the dealer should be able to do a deal or just vt the car.

Either way you will be better off buying the car this way as it will lose more than you are paying.

[TheInsanity1234]

If I get the dealer to VT the car, at the same time as ordering another car, would I still be able to use it to contribute towards a deposit or like a part exchange?

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Edited 29 May, 2016 by TheInsanity1234

[bluecar1]

no, if you VT the car it belongs to skoda finance and they take it back, at which point you owe nothing, but you have nothing to trade in / use as a deposit

 

take the choice as close to swap as possible to get maximum chance of positive equity

[TheInsanity1234]

If I were to part-exchange at the end of the contract, will I have to pay anything if the car is worth less than the final agreed value?

 

The car will be much lower mileage than the allowance, as it's going to remain at home whilst I'm at university in my first year, then I'll be taking it with me to university for my second year which means it'll be driven around Liverpool and the Wirral which won't be very many miles, so might be worth close to the final value (I believe the final value is usually set higher than the actual value of the car?)

[Eeeekkk]

I don't know if it's different if you're looking at the same make of car, but I had an Up that I was looking to trade in for a Fabia. Even having put down a £2750 deposit initially, and it being two years old, I would've had to pay the garage to take it off my hands. They wanted to load what was needed on top of the trade in value to pay off the finance onto the top of a new finance deal. They seemed really surprised that I preferred to return it to VW!

[Eeeekkk]

My final balloon is in the region of 4.3-4.5k. At two years, I was offered 4 as a trade in. I don't know if the values will improve once brand new ones don't get cheap tax any more?

[TheInsanity1234]

I was also thinking that the values of pre-17 registration cars probably would strengthen as the tax banding changes.

In fact, this all may be irrelevant, I'm planning on keeping the car but was wondering what my options may be.

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[wesleyuk]

hang on? they valued your citigo LESS than MGFV? hows that possible? i thought the whole point of balloon payment as MGFV ???

[sniperpenguin]

If I were to part-exchange at the end of the contract, will I have to pay anything if the car is worth less than the final agreed value?

 

The car will be much lower mileage than the allowance, as it's going to remain at home whilst I'm at university in my first year, then I'll be taking it with me to university for my second year which means it'll be driven around Liverpool and the Wirral which won't be very many miles, so might be worth close to the final value (I believe the final value is usually set higher than the actual value of the car?)

 

If the car is worth less than the final value, you just hand it back to Skoda and start fresh with a new vehicle - Do it any other way (Such as part-exchange) and you will be paying (somehow) for the shortfall when it isnt your hit to take.

So if your final value is £3800, and they value it at £3k at the end of the term, just hand the keys back. A common trick is for them to pretend to "increase" what they give you in part ex value if you take a new car with them. In reality, they are just using up discount you could be getting off the new car instead.

Get a quote for a replacement, haggle hard... THEN mention your part-ex.

[TheInsanity1234]

Would I be able to ask the dealer to sort out the VT for me? Because it would be convenient to be able to VT the car and pick up a new one at the same time.

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[bluecar1]

you ring up skoda finance and they will be able to arrange collection for you from the following day

 

I think it happens often so they will be quite accomadating