PCP Question - Negative Equity

paradigm_2

foxy-stoat wrote: »

For what purpose?

Figures you need to know is:

Monthly cost and number of months to the end of the agreement.
Total cost to 50% point (VT without paying any further)

The market value at any point in time is not relevant if you want to VT it....unless you want to work out if you should buy it and sell on for more, which probably wont happen to your advantage.

To give me an idea of my options

Manxman_in_exile

Smellyonion wrote: »

Looks wrong to me.


At time Time point 0.1 (on the X axis), the gap is minimal It is not until 1.3 where the gap appears to be at its largest.




The Value line should cross the Y axis at a lower point than the settlement line. Since the Vehicle immediately loses most of its value from day 1.

That's what I thought

paradigm_2

Manxman_in_exile wrote: »

That's what I thought

Indeed.

The way I see it is I can either:

a) VT: Stump up 50% of the total amount, have no car and a (relatively) big loan
b) Buy car with loan and then sell privately, will be left with a deficit of about 50% of the VT deficit above
c) Continue with the agreement like a sensible person would

foxy-stoat

Is the car too small to fit a baby in?

Trying to get out of a PCP this early on is going to cost you a fair amount anyway you slice it.

DrEskimo

It depends on the price you negotiate and the market demand on the car. It's entirely feasible that a dealer or a private seller can offer the car for not much more than the car was purchased for within the first few months.

You also need to factor in the upfront payment (purposely not calling it a deposit!). I suspect the graph above is assuming that the upfront payment of around 10% is covering much of the initial depreciation in the first months.

motorguy

paradigm wrote: »

New baby

What sort of a car is it and how many other kids do you have?

paradigm_2

motorguy wrote: »

What sort of a car is it and how many other kids do you have?

BMW 1 Series and 2 current children

foxy-stoat

paradigm wrote: »

BMW 1 Series and 2 current children

Yes, 3 would be a squeeze in a 1 series.

Have you crunched the numbers on the best way forward?

motorguy

paradigm wrote: »

BMW 1 Series and 2 current children

TBH I wouldnt be rushing to change it then. Three kids will fit in the back of a 1 series no problem for the forseeable future. Certainly at least until you get yourself out of this negative equity position.

I wouldnt be knee jerking in to changing a car.

motorguy

foxy-stoat wrote: »

Yes, 3 would be a squeeze in a 1 series.

Have you crunched the numbers on the best way forward?

3 would be fine in the back of a 1 series. We have one.

I think the O/P should work with what they have currently rather than flush literally thousands down the toilet getting out of this deal nad changing now, to then flush literally thousands again down the toilet with immediate depreciation again on the next car.