Car on a PCP value

Wily_coyote

Hi,

I am coming up to the end of the 4 years terms on my PCP for my car. I would like to use the equity of the current car as deposit for a new car. However, the dealer where I want to buy the new car value my current car substantially less than where I originally bought it. Is it possible to trade in the car with the current dealer to get the higher equity and then take the cash as deposit to the other dealer? Would the current dealer prepared to do it and would I need to tell the current dealer about my intentions?
Thanks

facade

You can sell the car to any dealer, WBAC etc.

They settle the finance, and give any surplus to you.

It is unlikely that your dealer will purchase your car for as much as they offer as a trade-in against another PCP deal though, with a PCP there is usually some offer or manipulation of the figures that can make the trade-in value higher.

WaywardDriver

Rather than focus on single component of PCP deal, compare overall price to change. i.e. your deposit required for equal monthly payments.

Wily_coyote

WaywardDriver said:

Rather than focus on single component of PCP deal, compare overall price to change. i.e. your deposit required for equal monthly payments.

Not sure I follow your comment. Can you expand please? Thanks

WaywardDriver

Wily_coyote said:

WaywardDriver said:

Rather than focus on single component of PCP deal, compare overall price to change. i.e. your deposit required for equal monthly payments.

Not sure I follow your comment. Can you expand please? Thanks

Decide on the amount you're comfortable with paying each month say £200. Then ask each dealer what deposit you need to achieve this after taking into account any equity in old car and manufacturer/dealer contributions/interest rates.

BOWFER

Wily_coyote said:

WaywardDriver said:

Rather than focus on single component of PCP deal, compare overall price to change. i.e. your deposit required for equal monthly payments.

Not sure I follow your comment. Can you expand please? Thanks

What Waywardriver has said is completely irrelevant to what you've asked. it would appear they've just seen 'PCP' and jumped in with both feet with some vague advice about PCP in general.

Anyway, to answer your question and to repeat what others have basically said, go around dealers and the likes of WBAC and see if they'll give you enough to settle and leave some equity.
The supplying dealer might even do it, I sold my Polo GTi back to the supplying dealer with no intention of buying a another VW.
They weren't bothered, they just wanted good used stock.

molerat

Arnold Clark will give you an on line valuation (indication) without having to give any details other than reg and mileage.  You can then take that figure and negotiate with any dealership or sell the car for cash - all these "buy your car" sites will settle the finance and give you the balance.

motorguy

WaywardDriver said:

Rather than focus on single component of PCP deal, compare overall price to change. i.e. your deposit required for equal monthly payments.

I completely disagree.  

Focus on EVERY component of the deal (as the O/P is asking anyway).

Focus on

* the price you're getting the new car for, after discount
* the price you're getting for your car
* the interest rate you're being charged if using finance

There is absolutely no obligation at all to do all three of those with the same dealer.  Very easy to sell a car to one source, buy from another and get finance from another.

And to answer the O/Ps question - yes you can sell your car to one dealer, have them pay you the equity directly and then buy the car off another dealer.