My Octy 1.4 TSI SE Estate is coming up for its PCP end in May. We're planning on getting another Skoda - either another Octy or a Karoq. We're off to the launch event in a couple of weeks so could possibly sign up for the right deal with the right timing.

Question is regarding our current car: it has a few minor bumper scrapes which would certainly affect the first impression the dealer sees. I've had a quote to fix it all for around the £400 mark, which I'm happy with. But should I get the work done before going in to the dealer next month (with the risk that something else happens in the 3-4 month order time) so they see an immaculate car, or let them see it as it is but tell them it will be totally prepped and sale ready at the point of handover?

The alternative is to leave PX out of the equation for now... I think the car will be reasonably desirable to a dealer as I don't see that many petrol estates on Auto Trader; but I need to be confident in what I'm going to get for it as a deposit.

Any thoughts welcome.

Cheers.

Edited 28 December, 20178 yr by just music
correction

I’d get it done for the valuation but don’t bother doing anything that could be considered fair wear and tear, it won’t make a difference to the value but it’ll cost you in repairs.

I’ve been going through the same process and while my Octy (a 15 plate 1.4 TSi SE DSG hatch) is in very good condition and slightly below its mileage target  I still had to shop around to get a reasonable valuation.

 

Like you, I went back to my supplying dealer. They said there  was no equity in the car (infact, according to their ‘calculations’ I owed £250) and didn’t budge from list prices, so it was a pretty deflating experience. There’s been a lot of chatter about PCPs being revalued down to reflect over-supply in the used car market, so don’t expect to be quids in whatever you do to yours (though petrols are performing better than diesels).

 

In the end, I decided to try the online broker Carwow. I punched all my details and requirements (I’m buying a Superb) into their website and they came back over the next couple of days with five offers from dealers either local or in my region. All were substantially better than I had been offered in the showroom, and the dealer I eventually went with also offered me £300 equity on my car. In other words, I’d found someone who was very keen to do a deal and hit a target.

 

One more thing to bear in mind: don’t be surprised if Skoda puts its prices up in the next few weeks - a rise well in advance of a plate change is routine practice. It may try to soften the blow with some better incentives on deposits, finance or servicing packages.

 

Happy hunting, but do try more than one dealer and don’t be afraid of trying brokers like Carwow. For me, they were a simple route to a significantly better PCP deal.

Edited 28 December, 20178 yr by MorrisOx

Thanks for the advice. We are possibly looking at a lease rather than PCP this time: I have it in an email from our local dealer that they will match any quote, so I am looking at Simpsons and FleetPrices and collating prices before arranging a meeting with the fleet manager. The advantage of the leasing option is that the SE Tech spec is available - giving adaptive cruise and other extras over and above the SE.

The settlement figure in May is £7.5k - we currently owe £8.3k (paying c. £250 per month) and We Buy Any Car has just come up with a £9k valuation (which of course will need the repairs doing) so hopefully a reasonable amount of equity - or am I being naive? I may also look at some local selling options (eg work intranet) as well as Tootle and see what comes up; I think there's more timing flexibility selling to a dealer than privately.

 

At the end of the day, we have a monthly budget; once we've seen the Karoq we'll make a decision about the preferred car, then I'll hit the web and see what materialises. I'd like to stick with my local dealer, but I'd only want to pay a small premium for this. I want to get the tow-hook and a few other options, so we're unlikely to get a stock car this time.

 

If you have a look at what cars like yours are going for on Autotrader and subtract a legitimate part-ex valuation then you’ll have some idea of the gross margins dealers are working within. They’ll generally lock in the value of your car when you sign the deal and I’d be surprised if promises to sort the paintwork make them move much from that figure.

 

I tried twice to stay with my local dealer but they were either under no pressure to cut a deal this month or just didn't want to. The dealer I found via Carwow clearly did want to do a deal and chased hard. They won.

 

It’s always tougher selling a car privately in my experience. There’s the hassle, the trust factor of total strangers trying your car, and the fact that you can’t offer buyers any guarantee or warranty. But you could get lucky.

 

I did look at a Karoq myself but was told there’s already a backlog of orders.

Edited 28 December, 20178 yr by MorrisOx

Not much on AutoTrader at all. Skoda Used Cars has one relevant example - Jan 2015, same spec, slightly higher miles - screen price £12.7k.

Out of interest, is it the case with VAT that if a dealer gives, say, £10,000 for a car and sells it with no margin at all, it would have a screen price of £12,000? Or is VAT cancelled out somewhere?

Selling privately isn't realistically going to happen - as you say, it's too much hassle for a car this age.

 

I might start getting some prices on CarWow and see what transpires for the PCP option.

They’d never sell at no margin...unless there’s a colossal margin elsewhere in the deal. VAT is a pass-through tax, not a source of profit.

Edited 28 December, 20178 yr by MorrisOx

1 hour ago, MorrisOx said:

They’d never sell at no margin...unless there’s a colossal margin elsewhere in the deal. VAT is a pass-through tax, not a source of profit.

Sorry, I worded the question badly. I just used the 'no margin' argument to keep the sums simple, and I know VAT is passed on to HMRC.

So, ignoring any other aspect of the deal, would a PX of 10k need to be sold at >12k in order for there to be any profit? Or is there an element of VAT in the PX value? 

The margin is a moving target not really connected to the tax. One way or another, the dealer’s sums will always add up!