How to orchestrate a car/finance swap

AlanD

hi folks, I'm hoping to have some clever finance mechanics eyes on this one.

I have a 221 RAV4 PHEV, part way through a PCP. They are selling for 48k right now. Settlement is 36k.

I'm keen to replace with a similarly priced EV (BYD Seal) without having to change how much I pay monthly.

The theory is I want to just swap cars. But the finance mechanisms, I can't figure out.

BYD offering appalling money for my RAV4 as trade in.

Any thoughts?

Buddy Bubs

Youll have to get your equity in the RAV4 (if you have any) plus put in a sum of cash (if needed) that will equal a deposit suitable to allow you pay the same each month as you are currently, bearing in mind the gmfv of the BYD is a fixed amount.

Deposit is variable

Monthly is variable

Gmfv is variable.

We don't know any of those figures so you'll have to get them all. You'll have to tell the BYD man, what do I have to do to get monthlies at 400 p/m, or whatever figure you want to arrive at

AlanD

thanks for the response. Equity would be 10-12k
monthly payment is 520.Hoping to avoid adding any cash.

in terms of finance, there is equivalence. Ideally I just want to swap cars as they both have the same value.

The finance plans are looking like it could cost me too much.

Buddy Bubs

Do you want the BYD dealer to take yours as a trade in and charge you same monthlies ?

I'm afraid that's probably not going to work for you. I can't see them equating a 2 year old RAV4 with a brand new seal as far as value is concerned. They won't offer you 48k for it.

What have they already offered?

lawred2

https://www.boards.ie/discussion/2058349284/how-to-orchestrate-a-car-finance-swap

what they are selling for is not particularly relevant… you'll never get that on trade in.

you'll need cash as well I expect

AlanD

An Audi dealer offered 45. BYD offered 41.

goochy

Not huge dealer network so try all dealers foe best deal

bazz26

Was the offer of 45k from the Audi dealer a cash offer or trade-in offer? If trade-in offer what was the value of the car you were thinking of trading it in against? If it's a cash offer then it doesn't sound too bad imo. Shop around the various dealers and car supermarkets and see if you can better it.

A brand new one starts from 55k so not sure anyone is actually paying 48k for a 2 year old example. Another thing is that the PHEV is 10k more than the regular Rav4 so the PHEV hasn't sold that well and I think it's hard to see you recouping a huge amount of that 10k premium back over a regular 2 year old hybrid Rav4.

goochy

Audi dealer hardly going to buy a rav4 for stock

bazz26

I wouldn't rule it out. They might be part of a dealer group with multiple brands and may retail it through one of those if there is money to be made on it.

trindade

The market price is NEVER the price that a trader/dealer will pay for your car. If your car is worth 48k, I don't think you can get more than 45k. Some dealers offer better trade-in valuations, but 41k seems very low. The numbers do not lie, you do not have equity for this transaction.

You have two options:

1. Take a longer-term LOAN (higher interest, probably 7% APR).
2. Sell your car privately.

Remember that this operation will be costly, and currently, there are too many EVs for sale with 0% APR and huge discounts. Maybe shopping around would be the best financial decision.


Also, purchasing a car with similar value (or lower) is always harder when they have similar prices. Probably with an older RAV4 you would get a better deal, or even with a more expensive car. If the car cost the same, the dealer is actually trading cars… So they will always have to offer a lot less for your own car.

AlanD

good advice folks.

The Audi was as a trade in so the 45k wasn't real money. It was against a Q4 etron.

I know a Toyota dealer would bite the hand off me for this car, so offloading it separately might be the way to go.

And although the financials/borrowings are almost identical, the swap of a vehicle isn't so straight forward.