What's the best way to do it?

DJDavey

I currently have a car on PCP which is due to expire the start of 2023, I've been looking around at cars and the dealerships are saying due to brexit etc it can be 6-9month wait for a new car.

I have been offered around £8500 for my current car part exchange by a dealer today but the same car is selling online for about £11500 and cazoo and webuy have even offered me about 1k+ more then the dealership who won't budge on price.

Would I be better, getting a 0% credit card and putting the deposit for my new car on that and then selling my current car to Cazoo and then using the excess from the sale to pay off my deposit on the credit card? or should I just guy my losses and trade it in for the dealership price?

Any help would be great, thanks

Grumpy_chap

Do you have to have a brand new car and start the next PCP cycle, or is it an option to buy the car you have and keep for longer?

If you can sell the car for more than the Dealer is offering, and I assume that is more than the settlement figure, then you can sell the car to anyone and clear the finance.  No need to sell to the Dealer if they are offering you £1k less than you can get elsewhere.

There are many constraints on the supply of new cars at present, but those constraints are the reasons why the current car is worth more to sell.  To "cut your losses and trade it in for the dealership price" seems like just about the worst thing you can do.

Flight3287462

The dealer doesn't want to offer a huge amount so far in to the future and Cazoo are offering that price for a sale today, who knows what they will offer in 2023.  You can have an educated guess where car prices will be, but the world is in a state of flux and nobody can be certain.

If you want a car in early 2023 you are going to have to commit now, do you want to do that?

Personally I would just buy the car and run it until things have settled down a bit.

DJDavey

Grumpy_chap said:

Do you have to have a brand new car and start the next PCP cycle, or is it an option to buy the car you have and keep for longer?

If you can sell the car for more than the Dealer is offering, and I assume that is more than the settlement figure, then you can sell the car to anyone and clear the finance.  No need to sell to the Dealer if they are offering you £1k less than you can get elsewhere.

There are many constraints on the supply of new cars at present, but those constraints are the reasons why the current car is worth more to sell.  To "cut your losses and trade it in for the dealership price" seems like just about the worst thing you can do.

I can hand the car back or pay off the final settlement figure and keep it but I would rather swap it for a new one tbh.

Thanks, I'll probably go down the route of selling it myself and clearing the settlement figure.

iwb100

So as you’ve had explained the price a dealer is offering you is reduced based on the future price whereas the ‘buy your car’ sites are valuing your car for a sale now.

The thing you should be asking is whether a dealer is offering a low price AND locking your equity or whether they will calculate your equity at point of exchange. The reason for this being that whilst you wait for your new car you will be paying off your settlement figure and it will be reducing. If they are offering a reduced amount and locking equity then there is no justification for that. If they are not locking then work out what your settlement would be in 6-9 months time and go from there.

Your options (assuming you need to keep the current car until new one is here) are to agree a pcp with your cars equity as part exchange OR to agree a pcp with a deposit amount and you sell your car privately come the time and use that equity as deposit. But the latter doesn’t guarantee your cars value and it may well drop. Second hand car values have dropped consecutively the last three months and signs are they will continue to fall. 

What i would do if I was you was shop around dealers - any dealer who has a car you might want and see what they will offer you for yours. You don’t need to stay with the same make unless you want to. Try different dealers. You could also look to see if there are any cars in stock or coming soon you want anywhere (use auto trader for example to search for brand new) and that way a dealer would be more inclined to get closer to the value you have from the online valuations assuming the cars condition is accurate. When I was sorting out a new deal for a new car a few months back one dealer offered £20k for mine and wouldn’t budge. Based on a long wait. The next dealer offered £24k and agreed to lock the resultant equity in the deal. So it’s worth shopping around.