Car is an appreciating assett. Sell for profit?

CoastingHatbox

Almost two years ago to the day, we took delivery of a Mini Clubman Cooper S Exclusive, on a PCP deal with a substantial discount on the RRP.

At the time we bought the car, we were both office based and commuting every day. Now we both work at home and we have another vehicle (Peugeot Partner Van) in the household. The Mini has covered 4k in two years of ownership.

Today I've had a look at the used prices and checked the PCP settlement figure. I think it makes good financial sense to settle the finance and sell the car. It is hard to say how much we are likely to get for it, but I'd anticipate making anywhere between £3 and £8k.

The only concern I have, is one of the rare occasions cropping up when a car with 4/5 seats is useful. Earlier in the year I drove about 400 miles for a funeral and ferried people between the funeral service and the wake.

Thoughts?

mobileron

First thing is to find out what value the cars worth,check autotrader.

CoastingHatbox

mobileron said:

First thing is to find out what value the cars worth,check autotrader.

I have. There is not one vehicle listed for less than the discounted new price we paid for the car and some for upwards of £5k more. We could easily settle the finance, and even before realising just how crazy the used car market is now, I'd mooted letting it go because it is surplus to requirements.

That said, SWBO has said she would want another car (albeit a Yaris or a Micra) because she doesn't want to have to drive a van*. In which case, I think we might as well just hold onto it.

*I know she has no problem driving it, I suspect it is more to do with the mentality/stigma around white vans.

happyc84

if you need a larger car you could hire one when you need it. Factor in the number of days/week per year hold back £1k, would be a cheaper option.

Grumpy_chap

CoastingHatbox said:

Today I've had a look at the used prices and checked the PCP settlement figure. I think it makes good financial sense to settle the finance and sell the car. It is hard to say how much we are likely to get for it, but I'd anticipate making anywhere between £3 and £8k.

The only concern I have, is one of the rare occasions cropping up when a car with 4/5 seats is useful. Earlier in the year I drove about 400 miles for a funeral and ferried people between the funeral service and the wake.

Rather than Autotrader adverts, which may not be actual sell prices, get an initial indication for the Mini from WBAC.  If that confirms a large uplift over the settlement figure, at least you know for sure and can make a proper decision.  You can then sell for the highest achievable through whatever means you wish, should the decision be "sell".

You could then buy a much cheaper car for the 2k miles per year, be released from the monthly payment and maybe still have a few £££ left over.

Alternatively, no car plus the van plus UBER plus the occasional hire car.

KimJongUn88

If you realised a profit toward the lower end of your bracket, would selling the car for a gain of £3 really worth it?

k3lvc

I'm in a similar situation - supplying Mini dealer rang me and offered nearly £2k more than I paid 18m ago - my issue is I'd be picky about what I replaced it with and nothing's come up in the past weeks.

If you're looking to down-trade and don't need the Mini any more then have a look on Mini FB pages - there's a couple of people (Supermini/Batchelors) who might snap your hand off for it 

CoastingHatbox

For the curious:

WBAC figure is £20,800 and would net us £4.2k over the finance settlement figure

CoastingHatbox

In all seriousness, I wonder what is going on with insurers when vehicles are written off. Are they still paying old market values?

CoastingHatbox

KimJongUn88 said:

If you realised a profit toward the lower end of your bracket, would selling the car for a gain of £3 really worth it?

Lower end of price bracket it £3k, not £3.

It's not just about the profit. It's the monthly PCP payment for something we don't really use.

Grumpy_chap

CoastingHatbox said:

In all seriousness, I wonder what is going on with insurers when vehicles are written off. Are they still paying old market values?

There is a thread on exactly that:
https://forums.moneysavingexpert.com/discussion/6292645/car-insurance-glasss-guide-out-of-date#latest

k3lvc said:

I'm in a similar situation - supplying Mini dealer rang me and offered nearly £2k more than I paid 18m ago - my issue is I'd be picky about what I replaced it with and nothing's come up in the past weeks.

I am intrigued as to how this will all end once the supply of chips is resolved and new car manufacturing and supply restored.  Will Dealers be left with a load of stock they over-paid for and cannot then shift?  Will that result in some Dealers ceasing to trade as they cannot carry losses across the entire forecourt.

To be offered £2k more than retail 18 months ago, then add profit and warranty etc - that car has to retail for at least £4k more than retailed 18 months ago.  The car is 18 months older to boot!

CoastingHatbox said:

WBAC figure is £20,800 and would net us £4.2k over the finance settlement figure

You can write-off a £16k debt and put £4k (or more) in the bank.  Or keep a car that you are doing 2k miles per year.  I know what I would do.