End of Time PCP deal?

bealine99

Our Volkswagen Polo 1.2 S (65 bhp) is coming close to the end of its 3 year PCP Agreement with Volkswagen Finance. The mileage is a wee bit higher than usuial at 37,000 miles (which will probably be about 40,000 by the end of the agreement). It has been a reliable car and has been looked after well and I would have no hesitation in running it for another 2 to 3 years.

We now have three options available to us:

1. Hand the car back - walk away and pay and Excess Mileage Charge of around £750 uinless the car is handed back early..
2. Go to a VW dealer and negotiate a new deal on a new VW car and use any surplus between the car's "Guaranteed Future Value" and the "Part Exchange Value" towards the deposit.
3. Purchase the car for its Guaranteed Future Value figure of £3558.

We are sorely tempted to buy the car and let it spend another couple of years with us as it's history is known and it has been well looked after, but wonder if you would consider this the wisest course of action? Is there any point in trying to negotiate a deal with VW Finance as it would probably be in their best interests for us to buy the car - it saves them all the hassle of auctioning and all the reams of paperwork involved!

What are your thoughts please? Has anyone any experience of negotiating a purchase after a PCP, Contract Hire or Leasing deal?

BenL

A 3dr of your model on an 06 plate, 30,000 miles on Parkers.co.uk comes up like

Independent Dealer£5,780 Private Good £5,290 Private Poor £4,170 Part Exchange£4,745

If i were you I would purchase the car at £3558, taking the worst outcome once it is yours private poor gives you £600. Compare this with having no car and a £750 bill to Volkswagon.

I doubt the car is in bad condition from what you have said so the figures only get better.

You know the history of the car which is a big bonus. Also in this world at the moment taking a new 3 year financial commitment might not be the best idea.

My Astra is up at the end of this year and I am going to keep it. I have also gone over the mileage but as time goes on the car gets better and better to drive and the economy keeps rising.

AdrianHi

If you trade the car in you will not neccessarily be offered as little as the GFV will you?
See what offer than can make you for a change and then decide.
Keeping the car you have longer will work out cheaper so long as you don't get any nasty repair bills.

plane_boy2000

My PCP came to an end a few months back. I took it to a few garages to see what they would give me in part ex against a new car, and the best offer I got was the GFV. One guy told me it was because cars had come down in price, and that I would have got £1k + more if it wasnt for the economic downturn.

Re trying to negotiate with VW finance I think you have little hope - the GFV is what they will want, or the car. Given that you are over on mileage it will cost you to hand it back, so if you are happy with it you may as well keep it

ryan1977

I'm in a similar situation. Currently have a 56-plate Peugeot 207 on a PCP that's due to come to an end in October. I can either buy it for just over £5000, trade it in or hand it back.

This is the third car I've had on a PCP - the past two have both been worth £1000-£1500 more than the final payment at the end of the contract so I've used the equity as deposit for another PCP. However, this time, according to most online guides, the trade in price is the same as the final payment so if I want to take out another PCP I'll have to either pay a deposit or cope with higher monthly payments.

If I had to buy a similar used car to mine on a forecourt it would cost in the region of 6500-7000 so buying mine from Peugeot seems to be a good option, but it's only a 3-door and a change in circumstances mean that I really need a 5-door car now.

So, I'm currently looking at personal leasing - I've found a few sites online that will lease a new 5-door Fiesta for around £170 per month (with a deposit of around £500) so I'm giving this some serious thought - only problem is that you have to be flexible about colour/spec but as long as I can find a car with air-con I'm sure I could manage.

plane_boy2000

Ryan - my new car is leased and it was a factory order so you can get exactly what you want, but sometimes the better deals are stock cars

bumpoowee

BenL wrote: »

A 3dr of your model on an 06 plate, 30,000 miles on Parkers.co.uk comes up like

Independent Dealer£5,780 Private Good £5,290 Private Poor £4,170 Part Exchange£4,745

If i were you I would purchase the car at £3558, taking the worst outcome once it is yours private poor gives you £600. Compare this with having no car and a £750 bill to Volkswagon.

I doubt the car is in bad condition from what you have said so the figures only get better.

You know the history of the car which is a big bonus. Also in this world at the moment taking a new 3 year financial commitment might not be the best idea.

My Astra is up at the end of this year and I am going to keep it. I have also gone over the mileage but as time goes on the car gets better and better to drive and the economy keeps rising.

We have just done a similar thing with a car we had on PCP, wanted to end the deal early but rather than pay a fee to the finance company to get them to take it away we paid the settlement figure to buy it outright and sold it privately, as it was worth more than the settlement fee.

If the above valuations are accurate (worth checking similar cars on autotrader too) this might be your best option.