PCP early trade in

[vw spur]

Normally on the settlement letters from VW Finance, it will say something like:

Agreement Balance     £00,000.00
Interest Saving            £0,000.00
Arrears                       £0.00
Total Amount Payable £00,000.00

So the bottom figure is what you actually will owe them if you want to settle early (and inclusive of any interest rebates).

It's just a yearly statement I've received in the post, not a proper settlement figure, had aggro getting that online for some reason.

[Little Lofty]

Two years in with a £5k deposit would usually mean some equity, but I guess it's down to it being a demon diesel. I imagine there will be a lot of voluntary terminations happening in the next few years, I'm guessing it's a bit early for you?

[vw spur]

Two years in with a £5k deposit would usually mean some equity, but I guess it's down to it being a demon diesel. I imagine there will be a lot of voluntary terminations happening in the next few years, I'm guessing it's a bit early for you?

I'm not quite 2 years in yet, 1st payment was may 2016, at a guess I'm at a break even situation right now, I put 5k in as a deposit as I hoped I'd have a bit of equity to use towards another car, if it doesn't pan out that way I think I'll be leasing from now on. I could have saved 3.5k & and had a standard spec gtd for cheaper on a lease, expensive lesson I suppose.

[fredgroves]

Should be easy to see where you are as the finance agreement should show the total interest payable. From that you can work out the remaining unpaid interest and factor in the cap value. Alternatively, one phone call can do all of that for you. I'm guessing a main dealer can access the same if you want to trade in... As they will need to settle the finance direct won't they?

[mcmaddy]

Two years into a four year PCP won't have the OP in any equity even with 5k deposit. In the first year your only really paying off interest. It's not until about year three that you'll have any equity and I'm speaking from experience here as that's what I did with my mk7 gtd.

[Little Lofty]

My car previous to the Golf, I put in £7500 and got back just under £5k when I sold it after 11 months. You pay a bit more interest at the beginning but not loads. I've never put in more than 15% deposit, always sell after one year and have only had negative equity once, that was on a Mini.

[vw spur]

So I’ve had a settlement figure of £17,251, so looks like I’d still have some negative equity to clear if the previous reply of trade in prices are accurate, even if I was offered the top end price of £16.400 is still have £800 to clear, would anyone have any idea if I’ll have any equity in the car in another 12 months??

[Sootchucker]

Regretfully, I very much doubt that any of us diesel drivers are going to have any equity at all in the coming months / years, such is the plummeting value of the cars at present. I had a couple of trade in prices on mine back in December (only 7 weeks ago, and both were within a hundred pounds or so of each other), and have had 3 valuations in the last week (just testing the water). Best case scenario, the car has lost £1350 of it's value in that time (worst case nearly £2k) !!!

I think it's something we just have to accept until it's realized that the witch hunt on diesel passenger vehicles (certainly Euro6 models) was and is totally unjustified. I've just decided to really enjoy the car until it's time to part with it and see then what it's worth, and if it's less in part ex than the balloon payment, VWFS just will get the keys handed back to them and I'll walk away.

Who remembers the time only a few short years ago, when buying a VW diesel guaranteed some of the best residuals in the market !

[davyk31]

Early 2014 I bought a new GTD and put in £5k deposit. Chose the GTD as felt at the time it would be a much stronger performer in residuals than the petrol cars. Our mileage is low, sold the car last Oct with only 28k miles. Car was totally immaculate with nice extras of satnav and leather.

Even with what I considered a large deposit it was going to be in negative equity if I traded in. Looked at selling through a prestige used dealer I know on a sale or return basis but all that would have done would have got me the settlement figure so really no point. Advertised it privately at a relatively high price justified by the spec, condition and mileage and found a buyer. Came out about £900 above my settlement so it was worth doing but very disappointing given I expected the car to have retained decent equity.

Dieselgate and the corresponding witch hunt really have taken their toll on values. And this time I have leased on a GTI and delighted. Will however in two years be handing them back an immaculate GTI which will seem a little odd.

[fredgroves]

BTW the other thing our OP could do is voluntary termination... you could drop out after 50% of the money is paid... go google it.

Of course that leaves you with nothing, but if the end of the 4 years you've got nothing and you want to change now, just blow it as soon as you can.