PCP

Heisenburg81

Don't know if correct forum but here goes;

I have one year down on a 36 month 1PCP.

Total finance at inception was €17,950 after cash deposit of €4,000 and trade on of €5,000.

GFMV is €8,000 based on 25,000km pa and monthly payment of €341.

If I want to get a new vehicle at the end of year 2 is it as simple as adding 12 months payments to the GFMV to give a total outstanding amount of €11,990.
Therefore I need a value of €18,000 to have a deposit of roughly €7,000 for a new car?

Do I have to use the same dealer if I want to take this course of action?

Also, how does the process work - How does the old PCP get settled - Does the dealer pay the outstanding amount to the PCP company?

Cheers

bazz26

No you don't. You don't have to buy the same brand either.

Heisenburg81

bazz26 wrote: »

No you don't. You don't have to buy the same brand either.

Cheers - Can you explain how the process works - ie how the old pcp gets settled and the new one started etc?

TheBigEvil

Hi,

Yea, it is pretty much that, your GFMV + outstanding payments. But you can always ring the finance department of your dealer, should be on your documentation, and ask for a settlement value.

I'm on a PCP (36 months) and am coming to end of year 2, and have just traded in with a year left and gone again for a 191 in Jan.

In general, your mileage, unless seriously excessive, doesn't come into it if rolling again into a new PCP. Most dealers wont hold you to it, again unless it is seriously excessive.

No, you do not have to use the same dealer, you can go to any dealer, and indeed even different manufacturers. Obviously if you do stay with the same dealer, you should get a better trade in, but not always the case. If going to another dealer, make sure you do know your settlement value though, as they will want to know so they can work out the deal for you. I did this previously, moving to a different make of car completely, and actually got a better deal.

Goes without saying that the best deals when considering PCP, are very low interest rates, with as low a cash deposit you can get away with that you are adding to any equity you get for your car.

TheBigEvil

Heisenburg81 wrote: »

Cheers - Can you explain how the process works - ie how the old pcp gets settled and the new one started etc?

The Dealer will give you a value for the car. They will pay off your outstanding settlement amount for you, and what ever is left is equity you can use to go into your new car. It is painless, you son't need to do anything, other than make sure you get as good a deal as you can

Lantus

You have managed a deposit of 9k on a 26k car? Exceeding 30pc.

At those deposit levels buying out is your best option. Any equity moving forwards will always give you a higher monthly. 10 to 15pc is always the most sustainable initial deposit if you intend to roll over.

Remember the dealer needs to make a profit so you don't see the market value minus any outstanding payments. It's minus his profit too.

So let's say your outstanding payments plus gmfv is 12k and the market value is 16k. A 4k difference that needs to be split between you and the dealer. You may get nothing to 3k..just depends.

It's the slightly shady side on how dealers make profit. They will focus on a monthly and not on your valuation.

Lantus

Heisenburg81 wrote:

If I want to get a new vehicle at the end of year 2 is it as simple as adding 12 months payments to the GFMV to give a total outstanding amount of €11,990. Therefore I need a value of €18,000 to have a deposit of roughly €7,000 for a new car?

If you owe 12k and market value is 18k that's a difference of 6k. I'd say 3.5k would be not unrealistic as your next deposit. Minus 2.5k dealer profit. On a 26k car that's 13pc equity moving forwards which isn't too bad!

Wexfordthemonk

Can I ask you a question ? I bought a Mazda 3 on a 4 year PCP its up next month I traded a 4k golf at the time.how does it work now I think its roughly 9k last payment but what's my options?thanks

Lantus wrote: »

You have managed a deposit of 9k on a 26k car? Exceeding 30pc.

At those deposit levels buying out is your best option. Any equity moving forwards will always give you a higher monthly. 10 to 15pc is always the most sustainable initial deposit if you intend to roll over.

Remember the dealer needs to make a profit so you don't see the market value minus any outstanding payments. It's minus his profit too.

So let's say your outstanding payments plus gmfv is 12k and the market value is 16k. A 4k difference that needs to be split between you and the dealer. You may get nothing to 3k..just depends.

It's the slightly shady side on how dealers make profit. They will focus on a monthly and not on your valuation.

mickdw

Options are
1/ To return car and walk away.

2/ To buy out car by paying the gfv amount in lump sum or possibly financed over a term

3/ Trade in car and use any value over amount owed as deposit on next one.

Wexfordthemonk

If value of the car is roughly 17k and 9k still owed as final payment what would u think be my best option

mickdw wrote: »

Options are
1/ To return car and walk away.

2/ To buy out car by paying the gfv amount in lump sum or possibly financed over a term

3/ Trade in car and use any value over amount owed as deposit on next one.

mickdw

I don't see how the car could be worth anywhere near 17k.
If it was, you would basically have 8k to go forward as deposit on new car and would be in a very good position.

Wexfordthemonk

Its a 15 1 Mazda 3 how you think it not worth 17k ? Never buy a Mazda again by the way

mickdw wrote: »

I don't see how the car could be worth anywhere near 17k.
If it was, you would basically have 8k to go forward as deposit on new car and would be in a very good position.

mickdw

How much was it new?
I'd imagine it's worth about 55 percent of that at 3 years, much less that 50 percent of new price at 4 years old.

Wexfordthemonk

32k I had 4k trade in

mickdw wrote: »

How much was it new?
I'd imagine it's worth about 55 percent of that at 3 years, much less that 50 percent of new price at 4 years old.

KERSPLAT!

Wexfordthemonk wrote: »

Its a 15 1 Mazda 3 how you think it not worth 17k ? Never buy a Mazda again by the way

Some for less than 15k on carzone. Not that yours isn't worth 17k, but be careful you don't over value it

Wexfordthemonk

Ye maybe ur rite 15 may be closer,thanks for your help

KERSPLAT! wrote: »

Some for less than 15k on carzone. Not that yours isn't worth 17k, but be careful you don't over value it