PCP - settlement figure and trade-in

Astraeus

Evening all.

I am contemplating downgrading my car to free up some monthly income so I can pay for my other half to also have a car.

I am only part way through my PCP. The settlement figure I have been given by Audi is £31.5k. The AutoTrader PX valuation comes in at £29.6k. Am I right to think that my negative equity is therefore £1.9k?

I could feasibly pay that off to be "done" with this deal in order to downgrade my car and pay for that and my partners, especially because my downgrade would be £400 a year less expensive to insure and do 40mpg more than my car! I don't suspect it would take me long to recoup circa £1.75k.

Has anyone done this - go to a dealer and say they can have my car and that they need to settle up with the old finance company? I plan on speaking to a couple of dealers tomorrow but thought I would ask on here first to avoid making myself look like a turnip!

Many thanks

A.

System

If you PX then yes its around a £1.9k negative equity. I'd question the 40MPG fuel saving, I think you're being optimistic. Even if your Audi only did 20MPG you'd be struggling to get a car that actually does 60MPG or more in real world use.

Dealers quite often buy cars on finance from people and settle it however expect to get your pants pulled down.

motorguy

Tarambor wrote: »

Dealers quite often buy cars on finance from people and settle it however expect to get your pants pulled down.

There is no reason why a dealer will "pull your pants down" more if you have finance outstanding on the car - if its a good, retail quality car they'll be more than happy to give a decent trade price for it.

O/P - you dont have to go back to your supplying dealer to do the deal. I'm assuming at that price its a fairly new Audi and therefore likely to be something a franchised dealer could retail, therefore i''d be ringing all the Audi dealers within a 100 mile radius and asking to speak to the person who deals with buying used cars and ask them would they be interested. You will be surprised at the variance.

Likewise search for indy dealers selling similar priced / aged cars within a similar radius and do the same.

Also try we buy any car - they are sometimes ok for price if they have a trade buyer who buys that sort of stuff off them.

Zero_Gravitas

Tarambor wrote: »

If you PX then yes its around a £1.9k negative equity. I'd question the 40MPG fuel saving, I think you're being optimistic. Even if your Audi only did 20MPG you'd be struggling to get a car that actually does 60MPG or more in real world use.

Dealers quite often buy cars on finance from people and settle it however expect to get your pants pulled down.

My Skoda Octavia 1.6 diesel has, over its 32000 miles delivered an actual measured 61.8 mpg - so there are cars out that can do it.

motorguy

Zero_Gravitas wrote: »

My Skoda Octavia 1.6 diesel has, over its 32000 miles delivered an actual measured 61.8 mpg - so there are cars out that can do it.

+1

My previous Golf 1.6 TDI did an easy 60+ mpg brim to brim

System

motorguy wrote: »

There is no reason why a dealer will "pull your pants down" more if you have finance outstanding on the car

Because the majority of those who are wanting to get rid of a car with finance on are doing so because they can't afford it and want a quick sale therefore the dealer will take advantage of that, especially if there is any equity in it.

motorguy

Tarambor wrote: »

Because the majority of those who are wanting to get rid of a car with finance on are doing so because they can't afford it and want a quick sale therefore the dealer will take advantage of that, especially if there is any equity in it.

Thats a wild assumption there - and they'd clearly be wrong in the O/Ps case as its just a change of circumstance?

A dealer will view the car as a potential stock item and price it accordingly as to whether or not they want to retail it.

Also there is no reason at all to give the dealer reasons why you're offering it for sale, and its easy to tell them you are looking for a serious trade bid off interested parties so they know to "sharpen their pencil".

Make that clear and poll as many dealers as you can. It isnt difficult these days and dealers are always looking for good clean, retail stock.

motorguy

Tarambor wrote: »

Because the majority of those who are wanting to get rid of a car with finance on are doing so because they can't afford it and want a quick sale therefore the dealer will take advantage of that, especially if there is any equity in it.

Did you actually even read the original post?

The O/P isnt looking to get rid because they cant afford it, nor do they have equity in the car, so the dealer who minimises the negative equity is the one most likely to get the car, which means giving a bit more not a bit less..

Astraeus

Thanks all.

Interestingly, BMW suggested a P/X price of just over £26k which would have equated to circa £5k of negative equity which, of course, is a hit I would never be willing to take. They did admit that they'd call Audi and it would be Audi, not BMW, who would take the car. I'll cut out the middleman and ring around a few Audi dealerships this weekend.

I'm inclined now to sit it out for at least a few more months to get to a position of at least zero equity and then look at selling. We may have just dipped in on a great deal to pick up a car for my partner.

As I say, thank you for your input and for sharing your experiences.

A.

loskie

this is a job for during the week not weekend. The bods you need won't be in the office and the promised calls back will not happen.
Try the likes of TOOTLE

System

motorguy wrote: »

Did you actually even read the original post?

The O/P isnt looking to get rid because they cant afford it, nor do they have equity in the car, so the dealer who minimises the negative equity is the one most likely to get the car, which means giving a bit more not a bit less..

Can you tell me where in my posts I said the OP was? No. I said most because most are as can be evidenced by the fact we can't go more than a day or two on this board, the Loans board or the DFW board without posts from people asking how to get out of their PCP deals because their circumstances have changed and they can't afford it.

Why would a dealer pay more for the OPs car that there's loads of for sale at auction? The OPs negative equity isn't their concern. If the OP wants more than they can pay for one elsewhere then the dealer won't buy it.