PCP early trade in

[vw spur]

I'm just approaching 2 years into a 4 year PCP agreement on a Golf GTD & the other day I got a VIP invitation (I know I know) to a "special" sales event at the dealer I used to get the GTD from. Recent additions to the family, a baby & a dog, mean that I could do with something bigger & have been looking at a used Touareg as a possible next car.

Now the thing is am I likely to get shafted on the GTD come trade in price?? I'm not interested in going ahead if I owed money on top to clear the finance on the GTD, I've seen a Touareg which I could be interested in at 27k, would it be realistic to get it for 25-25.5k?? Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?

I've got someone from the dealer phoning me tomorrow & am just hoping I could have some info before I talk to him

[Guzzle]

According to CAP, based on average mileage, yours currently books between £14k and £16.4k depending on condition. What is your GMFV figure?

[Little Lofty]

Start by getting valuations on your car, then you need the settlement figure on your car to see if you have equity, that will depend on how much deposit you paid, if it was minimal then there is a good chance you'll be in negative. Trying to get a discount on used can be a challenge but you may find a deal is out there if the dealer has a good margin in the car, you won't know until you ask. The apr is taking the micky, a bank loan would be cheaper or try a third party such as Oracle, or if you have a Halifax account they offer a car buying scheme, the dealer may reduce the rate if they think they have competition.

[vw spur]

According to CAP, based on average mileage, yours currently books between £14k and £16.2k depending on condition. What is your GMFV figure?

£11.300 if I remember correctly

[vw spur]

Start by getting valuations on your car, then you need the settlement figure on your car to see if you have equity, that will depend on how much deposit you paid, if it was minimal then there is a good chance you'll be in negative. Trying to get a discount on used can be a challenge but you may find a deal is out there if the dealer has a good margin in the car, you won't know until you ask. The apr is taking the micky, a bank loan would be cheaper or try a third party such as Oracle, or if you have a Halifax account they offer a car buying scheme, the dealer may reduce the rate if they think they have competition.

I paid a 5k deposit, its my first PCP & the general opinion I found after was PCP works best with the minimum deposit put into the deal, so hopefully my 5k will have something left in it.

I've never had much luck in getting much luck of a 2nd hand car, I always try though, can only say no I suppose.

I was looking at the halifax car loan option last night, I don't have a bank account with them but I do have my mortgage with them, not sure if that would help as I noticed it did say current account required.

[Little Lofty]

Putting in a higher deposit means less chance of negative equity if you have to get out early, and you pay less interest, so nothing wrong with putting in £5k. Your GFV has little bearing at the moment so you need a settlement figure, you may be able to get an automated figure if you give them a ring tonight, I can't remember if that's something VWFS offer? If not a phone call tomorrow will tell you, you'll get a call from the supplying dealer as it rings a bell at their end I got £500 of my Golf, not great but it was the cheapest in the country so knew it was well priced, how does the price of Touareg compare to other up for sale?

[davyk31]

Yes VWFS is an automated service to get your settlement figure.

[vw spur]

Putting in a higher deposit means less chance of negative equity if you have to get out early, and you pay less interest, so nothing wrong with putting in £5k. Your GFV has little bearing at the moment so you need a settlement figure, you may be able to get an automated figure if you give them a ring tonight, I can't remember if that's something VWFS offer? If not a phone call tomorrow will tell you, you'll get a call from the supplying dealer as it rings a bell at their end I got £500 of my Golf, not great but it was the cheapest in the country so knew it was well priced, how does the price of Touareg compare to other up for sale?

I tried to get an online figure but can't find my agreement email with the agreement number on so I'll give them a call tomorrow.

It's the supplying dealer who are runnning the so called VIP event but the Touareg I've seen was at a VW dealer in Westbury and it doesn't seem badly priced, it's actually at £25,495 so if I got it down to 25k I'd be happy as didn't really want to pay more than that, just need to see if the figures stack up.

[vw spur]

Been trying to sort my settlement figure on line all morning but for some reason it won't process. Postman come a while ago & there's a letter from VWFS with a statement in it, currently I owe £18,636 which I assume is including interest, a rough estimate of the interest is about £1500 I think so I'm guessing a settlement figure of around £17k, which I think would leave some negative equity, so as it stands I'm gonna stay with the GTD for a while longer.

As for the call I've been waiting for from the supplying dealer, I'm still waiting which isn't really a surprise, they said they'd phone at 10am this morning.

[Sootchucker]

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).

Think I've decided to put off getting into a petrol for a while yet too. As it is, with Diesel values tumbling, I'll keep it for the remaining year and see where I stand. Of course I can always just had it back to VWFS at the end of the PCP and leave them with any negative equity