PCP Toyota C-HR

skippy123!

Hello guys,


I have a question on PCP that I have taken 2 years ago. I have 1 year left on PCP and after that I can exchange the car for a new one or buy off this one.



Car was 33 000 euro and i have made a deposit of 10 000 euro with a PCP of 3 years and 20 000km. Remaining value (buy off value) is 13 000 euro. Now - my question here is if the mileage on this car if far below 60 000 km does that add up to a value in the car or I still have to pay 13 000 euro?



The reason why I ask is when I took the car I asked the man who I was talking with in the Toyota sales - what happens if the mileage is a lot less - he mentioned that the value of the car is more... But the paperwork says something else...



Any help is welcome!

galvo_clare

Your car is worth market value at the end of the term. If it has less miles than average then it should be worth more.
The €13k is what is owed to the bank and must be paid if you want to keep the car and drive away.
If you roll it up into another PCP deal the €13k will be paid as part of the deal by the Toyota dealer or a dealer from another make. You aren’t tied to Toyota for the next deal.

skippy123! wrote: »

Hello guys,


I have a question on PCP that I have taken 2 years ago. I have 1 year left on PCP and after that I can exchange the car for a new one or buy off this one.



Car was 33 000 euro and i have made a deposit of 10 000 euro with a PCP of 3 years and 20 000km. Remaining value (buy off value) is 13 000 euro. Now - my question here is if the mileage on this car if far below 60 000 km does that add up to a value in the car or I still have to pay 13 000 euro?



The reason why I ask is when I took the car I asked the man who I was talking with in the Toyota sales - what happens if the mileage is a lot less - he mentioned that the value of the car is more... But the paperwork says something else...



Any help is welcome!

skippy123!

galvo_clare wrote: »

Your car is worth market value at the end of the term. If it has less miles than average then it should be worth more.
The €13k is what is owed to the bank and must be paid if you want to keep the car and drive away.
If you roll it up into another PCP deal the €13k will be paid as part of the deal by the Toyota dealer or a dealer from another make. You aren’t tied to Toyota for the next deal.

Thank you for your reply on this... Does that mean as well that I can pay off that car directly to the bank or? When the term expires - do I get some kind of notice of payment that is needed or?

galvo_clare

You can get a settlement figure at any time from whatever financial institution you used to take out the PCP. I’m sure as the term ends you’ll get some communication from them.
There’s nothing stopping you just paying off what’s owed at the end of the term and taking ownership of the car without having to go near a dealer.

skippy123! wrote: »

Thank you for your reply on this... Does that mean as well that I can pay off that car directly to the bank or? When the term expires - do I get some kind of notice of payment that is needed or?

skippy123!

galvo_clare wrote: »

You can get a settlement figure at any time from whatever financial institution you used to take out the PCP. I’m sure as the term ends you’ll get some communication from them.
There’s nothing stopping you just paying off what’s owed at the end of the term and taking ownership of the car without having to go near a dealer.

I think that would be best option... At the moment - if I pay off that 13000 euro and sell the car privately on that mileage - I can probably get a lot more for the car then the dealer would ever give me. What will I do later on would be on my discretion.


Thank you very much for the answers! It was a bit confusing at the start but not a bad deal in the end of the day...

colm_mcm

skippy123! wrote: »

I think that would be best option... At the moment - if I pay off that 13000 euro and sell the car privately on that mileage - I can probably get a lot more for the car then the dealer would ever give me. What will I do later on would be on my discretion.


Thank you very much for the answers! It was a bit confusing at the start but not a bad deal in the end of the day...

You have to wait a year to sell it and only owe €13k

Remember, the 13k is only a minimum, a sort of worse case trade in scenario. You will do better than that if you trade in.

skippy123!

colm_mcm wrote: »

You have to wait a year to sell it and only owe €13k

Remember, the 13k is only a minimum, a sort of worse case trade in scenario. You will do better than that if you trade in.

But would that mean then that they can give me the value of let's say 20 000 if I extend PCP on another car? Basically - that would be my down-payment and then pay monthly for next 3 years on a other car? I assume that remaining value on the end of that term would be a lot less considering that down-payment was bigger for the same car price range?

Jacovs

skippy123! wrote: »

But would that mean then that they can give me the value of let's say 20 000 if I extend PCP on another car? Basically - that would be my down-payment and then pay monthly for next 3 years on a other car? I assume that remaining value on the end of that term would be a lot less considering that down-payment was bigger for the same car price range?

You still owe the 13k on your current car.

If they offer you 20k for the car then 13k is used to settle the debt and only 7k remaining as a deposit on a new car. You would need to add some of your own cash to that if you want a similar car with similar repayments.

bazz26

Yes OP seems to have went in with the maximum 30% discount which is not a good idea if you want to keep monthly repayments at a similar level when going PCP again. Luckily the CHR seem to be holding their values strong so the OP should have decent equity in it but might still have to throw a few grand on the deposit to maintain those lower monthly repayments.

Lantus

So a big deposit gets you nice small monthly.

However, the equity at any point is the same for the smallest or biggest deposit. I. E the market value of the car minus the gmfv. The 13k you owe.

In a strong market the dealer might offer 18k. So an equity of 5k you can use as a deposit. This figure will vary depending on the cars desirability, mileage and the market.

A 10k deposit really demands you keep the car or knowingly move to much higher monthly on the next deal. Generally at that deposit level you should of been able to save extra each month for the up coming gmfv or to use as a deposit boost to get low monthlys on the next deal.

Shefwedfan

skippy123! wrote: »

I think that would be best option... At the moment - if I pay off that 13000 euro and sell the car privately on that mileage - I can probably get a lot more for the car then the dealer would ever give me. What will I do later on would be on my discretion.


Thank you very much for the answers! It was a bit confusing at the start but not a bad deal in the end of the day...

Trying to sell a car into the market which is worth over 10k is a struggle...most people will pay the extra to go to a garage....

Not saying you won’t sell but it is not as easy as some people think, especially with high value car and people need to get a loan

skippy123!

Shefwedfan wrote: »

Trying to sell a car into the market which is worth over 10k is a struggle...most people will pay the extra to go to a garage....

Not saying you won’t sell but it is not as easy as some people think, especially with high value car and people need to get a loan

I bought an old Gen3 Toyota Prius earlier on in 2015 which was 3 years old and managed to sell it for 3000 euro less then I payed for it. There is people who are willing to buy a car by loan rather then paying a lump sum later on... To be honest - 5000 euro deposit on a new car is not really a good deal. I would end up then again on PCP for basically same amount of money a month for practically same thing while if I sell privately car - deposit can be max of 30% or I can just buy one up north...