PCP final payment - high depreciation - negotiation

smoothound54

Folks - Got a car on PCP.  It has depreciated like a stone, to the extent it will be worth far less than the Guaranteed Final Value (GFV) by PCP end.

I love the car and would like to buy it, but not at the GFV. as I would lose 000s when I walked out of the door.  If I hand it back the finance/dealership take the ALL pain of the unforeseen depreciation and it costs me nothing.

I would be willing to buy it however, IF we could share the depreciation pain - by my paying  less than GFV -  so the finance/dealer's pain is reduced a bit - and I get he car I love, accepting its worth a bit less on the day I buy it .... so we both lose a bit.

Anyone any experience of this type of negotiation? Is it possible? Or will the finance company cut their nose off to spite their face and insist on taking all the pain to stick within the rules?

Cheers

Spies

Hand it back then buy it way cheaper at the auction it ends up in

fatbelly

Spies said:

Hand it back then buy it way cheaper at the auction it ends up in

I knew someone who did that. It worked. 

Of course it requires knowing when and where the car will be auctioned, and outbidding everyone else.

I have not heard of anyone doing the sort of negotiation the op suggests.

No harm in trying though

smoothound54

Thanks guys - I don't think my car will be going to auction - it will be a dealership car ...   but nothing tried nothing gained.....  thanks again.

retiredbanker1

OP Ask yourself this - why would they accept less from you than the contract states? You either pay the balloon payment or hand the car back.
 

henry24

What car is it?

crispy_duck

retiredbanker1 said:

OP Ask yourself this - why would they accept less from you than the contract states? You either pay the balloon payment or hand the car back.
 

Because they still might get more that way than if OP walked away and they had to dispose of the car by some other means? OP has said that they are happy to pay a bit more than market value after all.

Nasqueron

crispy_duck said:

retiredbanker1 said:

OP Ask yourself this - why would they accept less from you than the contract states? You either pay the balloon payment or hand the car back.
 

Because they still might get more that way than if OP walked away and they had to dispose of the car by some other means? OP has said that they are happy to pay a bit more than market value after all.

They have a contract where OP agreed to pay the balloon, OP just wants to pay less than they signed for based on what the car is worth now which isn't how any of this works.

Either they already get the payment in full or get the car back under VT which they can then sell on probably via PCP again with a new contract + all the interest they earned from OP as well. There is no good reason the firm would want to agree to accept less than the contractual amount

WheatOne

It isn't completely unheard of but not exactly common.

My father tried to do this in the mid 2000s with a VW financial services car.
The dealer (a family friend) got in touch with a contact at VWFS who came back with an offer below the balloon payment. In the end he didn't accept it as it was still too far above market value.

Also Renault were unprompted offering Zoes to owners at well below the contractual balloon value a few years ago because they had a glut due to come off PCP and the market value had collapsed.