Settle PCP with Loan and Sell Private vs Sell to Dealership

Pmaddocks86

Hi all,

I don't post here often but am a long lurker and could do some advice. I currently have a VW Polo Blue GT which I am in 3 years and 2 months into a 4 year PCP contract with. I am looking to sell the the car due to moving and no longer using it any where near as much as I used to. I have a settlement figure of just over 9k from the finance company and currently have the following options:

1. Sell directly back to VW for 9,250 which covers the settlement figure + 100 and walk away hassle free. They will settle the finance themselves etc and give me the difference.

2. Take a loan (which I've been approved for just haven't signed the paper work) to pay the car finance off and sell the car privately. I've looked on autotrader/gumtree etc and have seen the same model of car at a similar age and mileage (with less options like the sunroof) selling for around 10,500-11,500. However most of these seem to be dealerships rather than individuals selling privately.

I obviously don't want to lose potential equity in the car by going to VW, but at the same time it is a much easier route to selling privately. My fear with a private sale is around the cost of the car and people probably not wanting to spend that amount of money when they get no warranty etc. Plus then there is the payment issue i.e. bank transfers/cash.

If anyone has any advice or suggestions I'd really appreciate it.

neilmcl

If the current trade price is £9250 and dealer selling price is between £10.5K and £11K then I'd doubt you get that much selling it privately to cover your loan costs and continued insurance costs etc, not to mention the hassle. Up to you really but I'd sell it to the dealer and move on.

Pmaddocks86

I've also seen some garages selling my model closer to 12k but on closer inspection they seem to be the 5 door variety. I think you might be right, would be much less hassle to take it to the garage and just be done rather than sell privately.

I've also had a look at possibly using Wizzle if anyone has used that to get dealership prices?

foxy-stoat

Dont know what a Wizzle is, but selling it to a dealer and walk away sounds the best bet. You wont get the same price as a forecourt and for that amount car finance normally buys car at this level.

rhino_horn

Have you looked at motorway.co.uk to get a price for your car? They have loads of different car buying companies in there. One of them may offer than your vw dealer?

Penelopa.Pitstop

Try tootle.co.uk and selling to a trader. It's relatively hassle free and they may offer you more. You set up expected price and traders bid for the car. If you wait a bit, you will get enough offers to decide if it's worth to sell the car to trader. You don't pay anything for that service, buyer pays to the website.