Early change of pcp

Vik91

hi
i am about 1 year into a 3 year pcp deal for my 21 vw golf
I am keen to change it for an electric car.
my settlement figure is about 20,000 and auto trader valuation is coming at 23,000
any thoughts if this is doable?

iwb100

What do you mean doable? You can pay off a pcp anytime you want. So yes of course it’s doable. Whether you can afford the new car you want…well we can’t answer that. 

facade

The first problem will be in finding someone willing to give £23k for it whilst it is still on pcp, assuming you haven't got £20k knocking around to settle the finance- usually they pay off the finance and give you the difference.

Easiest is to sell it to WBAC or similar, they will pay off the finance and give you the extra, what are they offering?

The second problem will be in finding an electric car for immediate delivery, otherwise you will need some sort of transport when you sell the golf whilst you wait- could be 12 months or more depending on what you want.

Vik91

Wbac are offering 22,225.
I was thinking of going to a dealer and part exchanging for a nearly new electric car that they may have in stock

iwb100

facade said:

The first problem will be in finding someone willing to give £23k for it whilst it is still on pcp, assuming you haven't got £20k knocking around to settle the finance- usually they pay off the finance and give you the difference.

Easiest is to sell it to WBAC or similar, they will pay off the finance and give you the extra, what are they offering?

The second problem will be in finding an electric car for immediate delivery, otherwise you will need some sort of transport when you sell the golf whilst you wait- could be 12 months or more depending on what you want.

Eh? You go into a dealer who sells the new car you want an part exchange it. Easy. The stock thing. Sure. But can go in agree the park exchange then wait for the vehicle or find one in stock, 

shiraz99

Whilst part-exchanging is the easiest solution, it isn't necessarily the most MSE. Sure, a dealer may give you near what you want/need for the value of your car but that will be in expense of any possible negotiation on the car you want to buy. You may find it better to sell to a different dealer or possibly WBAC if they're offer is good. Shop around.

k3lvc

Assuming you're 1yr into a 3yr PCP and you're in +ve equity presumably you put in a hefty deposit ? Is it genuinely worth writing that cash off for the sake of moving to electric now ?

Herzlos

Vik91 said:

Wbac are offering 22,225.
I was thinking of going to a dealer and part exchanging for a nearly new electric car that they may have in stock

There should be no issue with that, the dealer will take the part exchange and clear the finance. Job done.

Vik91

I have also not factored in cost of installing a home charger as grant has finished

iwb100

shiraz99 said:

Whilst part-exchanging is the easiest solution, it isn't necessarily the most MSE. Sure, a dealer may give you near what you want/need for the value of your car but that will be in expense of any possible negotiation on the car you want to buy. You may find it better to sell to a different dealer or possibly WBAC if they're offer is good. Shop around.

This isn’t true at all in my experience. Part exchanging cars I’ve always had a dealer beat the WBAC offer and it’s never impacted the negotiations on a discount either.

It’s often easier to negotiate with a part exchange especially on a relatively new car for trade in as a dealer will be making their money back on another pcp deal most likely on the car you are selling them so they are less worried about the price they pay as it offers them two pcp deals to hit their targets with.

As an example I just part exchanged a car at £24,000 that we were offered £23,000 best price on all the online sites. Dealer wanted it as low mileage and prepared to offer more for part exchange. 

motorguy

Vik91 said:

hi
i am about 1 year into a 3 year pcp deal for my 21 vw golf
I am keen to change it for an electric car.
my settlement figure is about 20,000 and auto trader valuation is coming at 23,000
any thoughts if this is doable?

A comparable new electric car will come it at around £40,000.  There are no discounts and not too many incentivised finance offers.  Nearly new cars will be pretty much close to the list price of new ones and the PCP finance deals will be at a frankly awful APR.

Whilst you may save money on fuel, do you really want an extra £20,000 of debt right now, and the much increased monthly payments to cover it?

We've a 2019 M140i and my wife made noises about going electric.  The one that appealed to her was a new i4.  In a bit of decent spec its a £60K car.  That £35K difference would buy us an awful lot of fuel....