Vw pcp

Aspatria · 30 January 2018 at 9:37PM

I used VW finance for my first Polo using PCP in September 2012 with a deposit of £3000 , kept the car for 3 years and opted at the end of the period to change for a new Polo in 2015 , a further deposit of £1700.

Does the initial deposit and payments in the first agreement for the first car count in any way towards the second agreement or are these two separate issues?

pd52 · 30 January 2018 at 9:46PM

Did u just hand the car back after making all the payments or did they take the polo as px and pay off any remaining finance ? It’s likley that you’ve just started a new pcp agreement so the original deposit and payment would not count toward a new agreement as it’s a new contract. The only time you’d have some £££ towards a new car is if you were they would take your polo as part exchange, pay off the finance and and any difference could be used as a deposit on a new car. But the GMFV usually leaves little left by the time they account for any little stone chips , curbed alloys, going over your contracted mileage etc

Aspatria · 30 January 2018 at 9:58PM

Thank you pd52 , Ididn't pay off in full, they took the first car in part exchange.

I plan to change again in September this year, is it better to pay off in full before using as part exchange for the next car?

pd52 · 31 January 2018 at 1:03AM

I don’t think it will make any difference. If you pay the ballon payment for example £8000 you will then own the car, so if as you say you want a new one in sept 18 you will be px it anyway. Unless of course you sell it privately and get another e.g £1.5k then use that as your deposit on a new pcp deal. Of course it all depends on: how much your ballon payment is and what you’ll get as px. You’ll more than likely get the gfmv upon px, that’s the trap dealers use to keep buyers in the ongoing 3 year pcp loop. Not that it’s a bad thing if you want a new car every 36 months , it’s just of course you have to come up with a deposit again.