Ford options coming to an end

dickyseville

Hi all,
2 years ago I took out a 2 year Ford options for my wifes Ford Fiesta at Polar Ford. She got a 3 door white Ford Fiesta Zetec 1.4 petrol with privacy glass fitted. To achieve the GFV it had to do less than 6000 miles per year. We've paid £135 per month and have a GFV of £5500 for the car.
The car is in absolutely immaculate condition with full service history, no bumps or scrapes etc. It has 5300 miles on the clock. According to WhatCar used car valuation it has a value of £7800 private sale.

I have a meeting on Saturday to discuss my options. Ideally I'd like a new car of the same spec and to pay the same or less than what I've paid over the last 2 years. Does anyone have any experience of what Ford are like when renewing the options deals? What am I best doing / saying when it comes to the haggling over what happens next? If I approach Gordons Ford are they likely to try to beat Polar Ford for a deal? etc etc

Regards,
Richard.

TradePro

Hi Richard,

If I may say so, I'm quite expert on all matters PCP (Options as Ford call it), so I'll do my best to help.

Firstly though, your Fiesta isn't worth £7,800, sorry to have to say. What Car? valuations are often silly, don't take it personal. Whilst the trade have our own guides (CAP/Glass's), the closest one available to the public is Parkers (even though many people in the trade will argue this!). I'm at home right now so don't have the 'pro' guides to hand, but I think your Fiesta will be worth closer to £6300/£6500 in real money. You will of course get a discount on the new car, and you may feel better by 'adding' this to the true value (i.e. £6300 + £500 discount = £6800 p/x allowance).

The difference between what you achieve and the £5500 GFV is your deposit. If this amounts to say £1200, and you put in £1200 last time, your payments should be similar etc etc etc.

Can I suggest something else though? If your car has only covered 5,300 miles, and you are looking at pretty much buying the same model again, why not just 'buy' your own?

It's cheap at £5500, and you could refinance or take out a loan, have fairly small payments and own it in 2 or 3 years - maybe trade it in at that point? Just an idea, whatever suits you best of course.

Hope some of that may have helped.

forgotmyname

As above with oil changes more often than the book says is the maximum you will get a LOT of years from that car.

Do you really want to waste money on a new one?

dickyseville

Thanks for the replys.
I'll see what Polar Ford have to say on Saturday. To be honest as long as they offer me a car of the same spec (in the new shape) with the same payments then I will be happy because I want no hassle motoring where all problems get sorted out without me having to run around finding best prices etc.
I've had a look on Parkers and the value came out at £7515 for a 20,000 mile car of the same spec in average condition. Mine is in immaculate condition with 5,500 miles on the clock! Also webuyanycar.com came up with a quote of £7100 (although I do take that with a pinch of salt). I don't expect Polar will offer me £7500 but would hope they come in around £7000 and offer me an excellent deal on a new Fiesta (I can live in hope)!
Does anyone know what the CAP or Glass prices would come out at?

TradePro

Richard, Parkers list £7515 for 'private sale, good condition', with dealer retail only being around £100 more (£7660). Parkers 'trade in' is around £6800.

As I said, they are not a terrible guide, but it is only a guide.

Colour makes a difference (you'll notice they don't list different prices for different colours) and other factors, location is another (cars change hands for more money in London than they do in Sunderland, for example).

One other thing is your low mileage won't really increase value, just desireability.

If your car and a 20,000m car were both on Polar Ford's forecourt at £7995, yours would sell first. If yours was £8995, the 20k one would sell and yours would sit there for months until it was reduced...

daveyjp

Find a car like yours on a Ford main dealer website, see what the price is and take off £1500-2000. This will be their opening trade in offer.

dickyseville

Quick update. Gordon Ford have said they can offer me £7200 trade in price for my car. That's their opening offer. They've also said whatever Polar Ford offer they will beat it.

TradePro

That's definitely a good start, but please be assured that the figure will include some 'over-allowance' from the new car's profit margin. To be really cruel, search the internet for a really good deal on the new Fiesta, say £1000-1500 off RRP, and then ask them to match that AND give you £7200 for yours, they won't be able to of course

daveyjp

Check out drivethedeal to see how much the car can be supplied for from a main dealer via a broker. Take £7,200 from the drivethedeal price and this is the cost to change.

TradePro

daveyjp wrote: »

Check out drivethedeal to see how much the car can be supplied for from a main dealer via a broker. Take £7,200 from the drivethedeal price and this is the cost to change.

This is what I was saying won't/can't happen - after some 'drivethedeal' style discounts, you will get true value for your car, £6300-6500ish.

You simply cannot buy a 'cost price' car, and then get an inflated p/x allowance, life just isn't that sweet.

dickyseville

Hi all, here's an update on the negotiations. I got a price from drive the deal of £11245 for the new Fiesta 1.0 ecoboost in white with rear privacy glass (that assumes I take finance out). I took this price to Polar Ford who looked pretty shocked. He went away to his manager for 20 minutes and they looked pretty intense. In the end he came back and said they could only do the same car for £350 more than Drivethedeal at the best. He said they would break even at that price. He also said he could offer me £7200 for my old car which would give me a deposit of £1500. I also have a Ford privilege voucher which gives me £1700 off. In all the car after discounts on a 2 year finance deal is coming out at £88 per month. A saving of £47 per month. The GFV at the end of the deal was something like £6500.

I personally think this is a very good deal. Anyone else agree or disagree?