PCP trade in query

[MorrisOx]

I’m mulling over the trade in options on my Octavia SE 1.4 TSi DSG at the moment. It’s  in the final few months of its PCP and the selling dealer has already asked if I want to swap it for another Octy or a Superb. The dealer has been decent and I like the idea of a Superb, but I’ve had enough of the Octy’s torture beam rear suspension.

 

But a question: Does anyone know whether you can trade a PCP Skoda in at another VW Group franchise (i.e., VW, Audi or Seat)? 

[Ozzy25]

Yes, you can trade it in at any garage. Doesn't even have to be a VAG garage. You also don't have to wait unti the end of your PCP term. You can sell it anytime you want. 

[pkoconnor]

Yes, you can and you are not limited to the VW franchise.  I've looked at BMW and Hyundai which all offered a trade in value for the Octavia.

 

 

[MorrisOx]

How does that work guys - they just sort all the finance stuff for you?

[ahenners]

Ultimately they clear the finance freeing you of your agreement to the vehicle and you start again with the new agreement/car. Beware though if the outstanding amount is greater than the value then don't expect some miracle. They'll simply load the shortfall into your next deal and you'll end up with a naff deal.

[pkoconnor]

2 minutes ago, MorrisOx said:

How does that work guys - they just sort all the finance stuff for you?

 

They will ask for a settlement figure and then settle it with the finance company for you.  They do all the work.  If there is any equity in the vehicle then they will give it you back as cash or add it to the deposit on your new vehicle. 

[MorrisOx]

There’d better be some bloody equity in it, or I’ll be trading it in for a Dacia...

[Ozzy25]

Rough figures here for example. Bought my car for €30k PCP, trading it in with a different dealer 8 months before end of term. New dealer is offering me €18k on trade in. Settlement figure for finance company what I still owe is €14k. That leaves me with €4K to put down for deposit on new car. 

[ahenners]

6 minutes ago, Ozzy25 said:

Rough figures here for example. Bought my car for €30k PCP, trading it in with a different dealer 8 months before end of term. New dealer is offering me €18k on trade in. Settlement figure for finance company what I still owe is €14k. That leaves me with €4K to put down for deposit on new car. 

 

Unfortunately that doesn't tell the full story though, as it's not that simple. The trade in value is factoring in you buying another car. How much discount are you getting on the new car etc? The 4k "equity" could simply be the usual discount off list price.

[Ozzy25]

I'm getting no discount, just price as in brochure and dealer will be selling my old car for around €20-21k. Win win for the dealer. Buying new cars is a mugs game. But I couldn't resist 

[YMe]

Dealer settled my finance of £14,692 and car is currently on their forecourt for £15,295 so a £603 potential profit for them on top of selling me a new car and also selling me the old one 18 months ago. I even got £300 equity.

 

It's only money after all. If I leave it to the kids they'll only waste it - I'm quite capable of doing that myself.

 

[themanwithnoaim]

5 hours ago, MorrisOx said:

There’d better be some bloody equity in it, or I’ll be trading it in for a Dacia...

1.4 TSI DSG is a thirty quid VED car & it ain't diesel so a future city car too, is currently in demand, I'd try tootle.com & webuyanycar.com to get a feel of what it is ACTUALLY worth before trading it in.

 

Handed my 1.4 TSI DSG elegance in September, terrible condition, scratches, bumps & scratches/scrapes on bumpers & 4k miles over limit.

 

Mid December & whilst I haven't been told "no further charges" I've have been told F all, I think they are too bloody embarrassed that the car has probably made more at auction than the GFV so, they can't charge for damage or mileage.

 

Check the value or you could regret it

[MorrisOx]

I’m just under on mileage, condition is excellent, and the colour - quartz grey - seems a good seller at the moment.

 

I’m not pretending for one moment that I’ll come out on top here, but as long as the figures stack up I’ll be happy. The question is whether the supplying Skoda dealer is more likely to come up with a better offer than, say, a VW or Seat franchise.

[juan27]

7 hours ago, MorrisOx said:

I’m just under on mileage, condition is excellent, and the colour - quartz grey - seems a good seller at the moment.

 

I’m not pretending for one moment that I’ll come out on top here, but as long as the figures stack up I’ll be happy. The question is whether the supplying Skoda dealer is more likely to come up with a better offer than, say, a VW or Seat franchise.

 

I would imagine the deal offered could vary a lot even between different Skoda dealers. In the end until you talk turkey with some dealers it's all speculation. 

[GoneToBeemer]

@MorrisOx

You can also look to VT (Voluntary Terminate) your agreement yourself, without having to involve the dealer. If you're at that point in your agreement where you can, it's definitely worth exploring.

 

The dealer will be super keen to help, as they will want you to buy a new car. Not having a part-ex will give you a better negotiating position, and you can use some of the comparison sites to find yourself the best deal on whatever new car you want.

 

My two-penneth.

[MorrisOx]

Well, an update...and an object lesson in why even motor retail is going the same way as the High Street.

 

Went in to discuss a potential deal today, but was presented with 1) reasons why the price had to be high, 2) options just being added to the price rather than used as ways to build a deal, and 3) my car might just cover its finance but won’t make any contribution to the deposit...

 

So, I was quoted nothing but list price calculations which I’d already seen on the Skoda Finance Calculator. In other words, no deal of any kind, no incentive to buy from that particular dealer, no value added to the transaction.

 

I could go anywhere, and now that I’ve tested a Superb I could even buy online.

 

Amazon here we come...

Edited 20 December, 2017 by MorrisOx

[MrAdamwood]

39 minutes ago, MorrisOx said:

Well, an update...and an object lesson in why even motor retail is going the same way as the High Street.

 

Went in to discuss a potential deal today, but was presented with 1) reasons why the price had to be high, 2) options just being added to the price rather than used as ways to build a deal, and 3) my car might just cover its finance but won’t make any contribution to the deposit...

 

So, I was quoted nothing but list price calculations which I’d already seen on the Skoda Finance Calculator. In other words, no deal of any kind, no incentive to buy from that particular dealer, no value added to the transaction.

 

I could go anywhere, and now that I’ve tested a Superb I could even buy online.

 

Amazon here we come...

Go in to the dealer and ask them outright if they have any cars to shift to make their sales target and you will buy for the right price. 

[MorrisOx]

I’d already done all my homework on that score. Knew all the stock, price calcs, incentives. It was like listening to someone read a website at me. No attempt to actually sell.

[SWBoy]

12 hours ago, MorrisOx said:

It was like listening to someone read a website at me. No attempt to actually sell.

Had that when we bought our Octavia second hand from Sparshatts - but then the salesman let slip that they were short of their target that month (which ended in 2 days time), so I was able to use that to know the price down and get a better trade-in price too. Play hard ball....

[glosrich]

That's the art of buying a car, you have to find the right dealer at the moment when they are desperate to sell to meet target, then you get a deal.

 

Out of those times, very often they aren't bothered, and with Skoda's they usually have to wait 6 months for them to be built, so trade ins have to be valued low with that in mind.

 

But sales figures are down, so some dealers should be keen to shift stock cars.

 

Also there is a re-balancing of PCPs, they have realised they have been too cheap for the last couple of years and there is an oversupply of used cars, so cars are not worth their final payments - so negative equity. So a similar car costs more now, as final payments are a lot lower an 0% has gone for now.

 

You may be better off selling your car yourself or voluntary terminate, then go online an order the best deal you can find from Carwow, Broadspeed etc.

 

 

 

 

 

 

[SC03OTT]

19 minutes ago, glosrich said:

But sales figures are down, so some dealers should be keen to shift stock cars.

 

Are they? That’s not the story I’ve been reading. For the Octavia anyway. Sales are up this year over last. 

[GoneToBeemer]

They should be keen to shift cars no matter what - especially at this time of year.

 

I would just get them to spec the car as you want, tell you the list price and then make an “open extreme” offer. Any dealer will negotiate, especially if you start it.

Edited 21 December, 2017 by GoneToBeemer

[MorrisOx]

Another update. Went on Carwow and got 3 offers overnight, all of which appear to be better than the conversation with the dealer yesterday.

 

Funnily enough, one offer is from that very dealer...

[glosrich]

1 hour ago, SC03OTT said:

 

Are they? That’s not the story I’ve been reading. For the Octavia anyway. Sales are up this year over last. 

 

Ok Octavia is up, but generally sales are down. I think the problem is they cant get Octavias fast enough. So a deal with a trade in has to be right to allow for the long wait of potentially 6 months.

[MorrisOx]

So a final pre-Christmas update...

 

By Wednesday I should be handing over part of the deposit on a Superb from one of the five dealers who put up offers on Carwow. Local dealer I originally went to fluffed it again with all sorts of complicated reasons why the finance equations would be far too difficult for me to understand and figures which just wouldn’t come down. The ‘winning’ dealer’s finance guy is an ex-banker who told me exactly how it all works in everyday language and clearly wanted to do a deal - even rang me today on Christmas Eve to confirm all the details.

 

And the deal is significantly better - bigger discount, equity in my Octy where the other dealer said I owed money, and a promise to switch me on to a better deal if incentives improve in January (though I doubt that will happen). He was honest - said December & January are usually terrible sales months as people wait for March. Don’t know why, though - mine will be a factory order so won’t land until the 18 plate anyway.

 

So he wins. And so does the internet...

Edited 24 December, 2017 by MorrisOx
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