Part Exchange going into a PCP

philatio

Just trying to get a grip on how this works. Always owned my cars outright but now thinking about a new car on PCP.

If the dealer was to take my current car in part exchange.. how would this affect the PCP?


Say I'm looking at a deal of 48 months at £250 then a final payment of £11K to own the new car.

If I was then given £5K part-ex for my old car... would this then reduce the monthly payments to like £150..  or would it be split over the payments/final payment.. or what ?

I have googled and looked on car brand sites but none I've seen seem to explain this.

molerat

The car p.ex value would be your deposit so reducing the monthly payments.  The final balloon payment is the expected value of the car at end of term so will not be affected by the size of deposit.

WaywardDriver

It's your choice of how much of the part-ex value to put as the deposit. e.g. part-ex=£k10, put £k6 to deposit, dealer gives you the remaining £k4. But as stated, higher the deposit, lower the monthly payments.  

AdrianC

Yup. The balloon is the predicted value of the car at the end of the term. There's no variation in that depending on what you pay up-front.

What you pay up front and during the term is the depreciation plus interest. Pay more initially, less is borrowed, so less remains to be paid during the term.

philatio

Cheers. Makes sense.

BOWFER

Have they made you a decent offer?
My experience is they say they'll take your P/EX, but they don't reeeeeally want to, so the offers are rubbish.
Might be better off selling it privately, even for less than normal rate, or even selling it to a local garage or WBAC.