Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Please note that it is not permitted to have referral links posted in your signature. Keep these links contained in the appropriate forum. Thank you.

https://www.boards.ie/discussion/2055940817/signature-rules

Thinking of selling a near new car on PCP

Options
  • 18-10-2019 9:12pm
    #1
    BazzyB
    Registered Users Posts: 69 ✭✭


    Hello,

    Earlier in the year around early April I decided to buy myself a new car, a 191 Seat Arona FR for €23,500. Great spec as it was a dealer demo with 197km on it and got a nice reduction to get it off the forecourt before 192.

    I bought the car on a PCP deal through VW bank with my trade in as a deposit.

    My circumstances have since changed. I have bought a Campervan I use at the weekends and I am now only in the office 2 days a week. Essentially the car has done less than 1000km this month and this trend will continue. I am thinking of selling up and going back to a cheap run around as the monthly payments could really be better put towards saving for a deposit for a house.

    I have called VW bank for a settlement figure, its €18,900. Similar high spec cars with all the options are very hard to find but I reckon a dealer could sell mine with 8,000km on it now for around €22000? List for a new is €26500 with similar options.

    I am considering trying to sell privately for €21,000ish given the manufacture warranty remaining etc its not really that risky for a buyer.

    My question is how have people sold cars with finance outstanding on them in the past? Bank loan to settle with VW then clear the bank loan once the car is sold?

    Also in a private sale scenario how would you transfer €20,000 reliably for both parties, I assume cash wont happen haha.

    Thanks

    B


Comments

  • Options
    #2
    colm_mcm
    Registered Users Posts: 73,388 ✭✭✭✭colm_mcm


    I think you need an eye opener in terms of depreciation, the premium a customer will pay to buy from a dealer, and how difficult it is to sell a nearly new car for anything near what you pay for it.

    It’s almost 2020.


  • Options
    #3
    BazzyB
    Registered Users Posts: 69 ✭✭BazzyB


    Noted. Reckon I would get near the settlement figure?


  • Options
    #4
    ldy4mxonucwsq6
    Closed Accounts Posts: 1,537 ✭✭✭ldy4mxonucwsq6


    There are some priced at around 20k-22k but those are from dealers directly.

    If its a petrol you might be lucky to get 19k if the right buyer comes along, if its a diesel you might be lucky to get a buyer full stop.

    Selling privately can be a major hassle, would getting a loan for the settlement figure mean cheaper loan repayments anyway?


  • Options
    #5
    Shefwedfan
    Closed Accounts Posts: 18,958 ✭✭✭✭Shefwedfan


    Few issues
    Car is brand new and selling means people will think something is wrong and your offloading a lemon
    Buying a car privately for 20k you will struggle when they can walk into garage for similar money
    You need to check you number, depreciation is higher
    Is it diesel or petrol as mentioned?
    Nobody will buy with finance outstanding....just looks like you overspent and now can’t afford, how can you guarantee you will pay back loan?


  • Options
    #6
    BazzyB
    Registered Users Posts: 69 ✭✭BazzyB


    Alaya Embarrassed Racism wrote: »
    There are some priced at around 20k-22k but those are from dealers directly.

    If its a petrol you might be lucky to get 19k if the right buyer comes along, if its a diesel you might be lucky to get a buyer full stop.

    Selling privately can be a major hassle, would getting a loan for the settlement figure mean cheaper loan repayments anyway?

    1.0 Petrol 115hp so lucky that its quite a desirable model compared to the diesl with plenty of spec and options.

    Nah the repayments are actually very reasonable only 2.9% apr bank wont come close to that.

    Can always keep it, just seems to be a big opportunity cost.


  • Advertisement
  • Options
    #7
    BazzyB
    Registered Users Posts: 69 ✭✭BazzyB


    Shefwedfan wrote: »
    Few issues
    Car is brand new and selling means people will think something is wrong and your offloading a lemon
    Buying a car privately for 20k you will struggle when they can walk into garage for similar money
    You need to check you number, depreciation is higher
    Is it diesel or petrol as mentioned?
    Nobody will buy with finance outstanding....just looks like you overspent and now can’t afford, how can you guarantee you will pay back loan?

    Noted have no issue paying the loan, its a relatively small percentage of income as it stands I'm just not getting the use of it and feel its wasted.

    Petrol

    Its no lemon either thankfully but get that may be a concern for people.


  • Options
    #8
    banie01
    Registered Users Posts: 16,514 ✭✭✭✭banie01


    I ended a PCP over a year early recently and it was a straight hand back with the last month pro-rated.
    Have you spoken to VW bank about your options?


  • Options
    #9
    Shefwedfan
    Closed Accounts Posts: 18,958 ✭✭✭✭Shefwedfan


    BazzyB wrote: »
    Noted have no issue paying the loan, its a relatively small percentage of income as it stands I'm just not getting the use of it and feel its wasted.

    Petrol

    Its no lemon either thankfully but get that may be a concern for people.


    Sorry I am not saying its a lemon but people will think that because you are selling so quick


    I am not sure how you would get someone to pay you with no back up that you will pay off the loan?



    Not trying to be negative but a lot of people think it is easy to sell cars second hand, check every post on here and for every car the recommendation is to go to UK

    So what price would you buy in UK?because expect that to get fired at you.....


    The market is flooded at the moment, ask any dealer. You have every wheeler dealer buying cars in from UK and then selling on a few months later. Just have a look around here, everyone wants a car for well below what the value normally would be.



    Better to go in with eyes open.


  • Options
    #10
    Water2626262
    Registered Users Posts: 220 ✭✭Water2626262


    BazzyB wrote: »
    Hello,

    Earlier in the year around early April I decided to buy myself a new car, a 191 Seat Arona FR for €23,500. Great spec as it was a dealer demo with 197km on it and got a nice reduction to get it off the forecourt before 192.

    I bought the car on a PCP deal through VW bank with my trade in as a deposit.

    My circumstances have since changed. I have bought a Campervan I use at the weekends and I am now only in the office 2 days a week. Essentially the car has done less than 1000km this month and this trend will continue. I am thinking of selling up and going back to a cheap run around as the monthly payments could really be better put towards saving for a deposit for a house.

    I have called VW bank for a settlement figure, its €18,900. Similar high spec cars with all the options are very hard to find but I reckon a dealer could sell mine with 8,000km on it now for around €22000? List for a new is €26500 with similar options.

    I am considering trying to sell privately for €21,000ish given the manufacture warranty remaining etc its not really that risky for a buyer.

    My question is how have people sold cars with finance outstanding on them in the past? Bank loan to settle with VW then clear the bank loan once the car is sold?

    Also in a private sale scenario how would you transfer €20,000 reliably for both parties, I assume cash wont happen haha.

    Thanks

    B

    You can get the buyer to write a cheque or transfer money to VW for the settlement figure and then give you whatever amount you manage to sell for on top. Best of luck anyway. Might be difficult to sell quickly but it’s not like you are in a desperate rush to offload it either.


  • Options
    #11
    BazzyB
    Registered Users Posts: 69 ✭✭BazzyB


    banie01 wrote: »
    I ended a PCP over a year early recently and it was a straight hand back with the last month pro-rated.
    Have you spoken to VW bank about your options?

    Interesting how this worked for you. Did the market value of your car at that point cover the settlement figure?

    I have only gotten a settlement figure from them so far and weighing up what to do to. Will call them to discuss this further, I thought they would only want the settlement and wouldn't give other options good to know.


  • Advertisement
  • Options
    #12
    BazzyB
    Registered Users Posts: 69 ✭✭BazzyB


    Shefwedfan wrote: »
    Sorry I am not saying its a lemon but people will think that because you are selling so quick


    I am not sure how you would get someone to pay you with no back up that you will pay off the loan?



    Not trying to be negative but a lot of people think it is easy to sell cars second hand, check every post on here and for every car the recommendation is to go to UK

    So what price would you buy in UK?because expect that to get fired at you.....


    The market is flooded at the moment, ask any dealer. You have every wheeler dealer buying cars in from UK and then selling on a few months later. Just have a look around here, everyone wants a car for well below what the value normally would be.



    Better to go in with eyes open.

    Yeah covering the settlement myself with bank loan would appear to be the best way to instil buyer confidence alright.

    Imported from the UK for a similar spec and VRT, delivery etc would seem to be in the 18K range so good indicator alright.

    May be a battle to sell alright but I guess i'm in no major rush. Sold plenty cars but always in the 5k range so this is a new experience alright.


  • Options
    #13
    ldy4mxonucwsq6
    Closed Accounts Posts: 1,537 ✭✭✭ldy4mxonucwsq6


    Shefwedfan wrote: »
    So what price would you buy in UK?because expect that to get fired at you.....


    The market is flooded at the moment, ask any dealer. You have every wheeler dealer buying cars in from UK and then selling on a few months later. Just have a look around here, everyone wants a car for well below what the value normally would be.



    Better to go in with eyes open.

    This has been my experience, I've been trying to sell a fantastic car for 12 months now and have had little interest (a diesel unfortunately and I no longer commute).

    It's everything you'd want, full dealer service history, well priced, low mileage and brand new Nct, perfect condition and the little interest I've had have been told oh well they are just cheaper up the North etc......

    It's not easy to sell privately at the minute. I've had to hold on to mine even though it doesn't suit my needs currently.


  • Options
    #14
    L-M
    Registered Users Posts: 23,694 ✭✭✭✭L-M


    They won’t offer to buy it back, the will only direct you back to the Dealer you bought it from (Which would be my first port of a call to ask if they would potentially offer you the 18,900 for it)

    My best advice would be to keep it for another year at least. What you’re going to do is sell it for less than it’s worth to buy a cheaper car, so you’re going to lose money... just to spend it again.

    Keep it for another year at least. You’ll have more paid off it (And got the use out of it) and the car will be in a better position as a two year old, some what desirable car.


  • Options
    #15
    Shefwedfan
    Closed Accounts Posts: 18,958 ✭✭✭✭Shefwedfan


    BazzyB wrote: »
    Yeah covering the settlement myself with bank loan would appear to be the best way to instil buyer confidence alright.

    Imported from the UK for a similar spec and VRT, delivery etc would seem to be in the 18K range so good indicator alright.

    May be a battle to sell alright but I guess i'm in no major rush. Sold plenty cars but always in the 5k range so this is a new experience alright.


    Selling under 5k to be honest is handy and I have done loads of time

    Once you are over 10k then it is a major hassle.....also some banks now wont provide loan without buying off garage.....


  • Options
    #16
    aFlabbyPanda
    Registered Users Posts: 1,985 ✭✭✭aFlabbyPanda


    Most contracts have a halfway clause, once youve paid back half what you borrowed you can return the car and walk away. Check with the bank what this value is. But in my case it was about 24 months are we had little equity in buying the 191 Octavia.


  • Options
    #17
    Shefwedfan
    Closed Accounts Posts: 18,958 ✭✭✭✭Shefwedfan


    aFlabbyPanda wrote: »
    Most contracts have a halfway clause, once youve paid back half what you borrowed you can return the car and walk away. Check with the bank what this value is. But in my case it was about 24 months are we had little equity in buying the 191 Octavia.


    Half way means you walk away with nothing...in this case the OP would end up seriously out of pocket I would guess


  • Options
    #18
    Professor Genius
    Banned (with Prison Access) Posts: 391 ✭✭Professor Genius


    BazzyB wrote: »
    Noted. Reckon I would get near the settlement figure?

    You’d do well to get 15k. The FR model is neither fish nor fowl. Sporty SUVs don’t appeal to the boy racer brigade and they’re too overpowered for the family market.


  • Options
    #19
    Weltsmertz
    Registered Users Posts: 308 ✭✭Weltsmertz


    Consider keeping it. If you are doing 12,000 a year this is not insignificant. I do less. You are overestimating how much you will get for it privately. Interest is low. Rather than getting a banger keep it for 10 years.


  • Options
    #20
    aFlabbyPanda
    Registered Users Posts: 1,985 ✭✭✭aFlabbyPanda


    Shefwedfan wrote: »
    Half way means you walk away with nothing...in this case the OP would end up seriously out of pocket I would guess

    true but I guess it depends on how much 'equity' the OP has invested in it.


  • Options
    #21
    Iodine1
    Registered Users Posts: 380 ✭✭Iodine1


    Selling for 5k is completely different to 18k. People buying have 5k in their pocket. Most spending 20k will have a trade in, and will want no risk (=garage) and often will need finance which the trade will help arrange. And your car is now a 2 owner. You will take a bigger hit than your 1-2k. If no one you know wants it, selling private is hassle. And plenty are buying diesels, but no one who is negotiating to buy will admit it.


  • Advertisement
  • Options
    #22
    banie01
    Registered Users Posts: 16,514 ✭✭✭✭banie01


    BazzyB wrote: »
    Interesting how this worked for you. Did the market value of your car at that point cover the settlement figure?

    I have only gotten a settlement figure from them so far and weighing up what to do to. Will call them to discuss this further, I thought they would only want the settlement and wouldn't give other options good to know.

    At the time I looked to settle I was expecting to take a hit on settling and selling.
    Couple that with the time invested in tyre kickers and needing to deal with potential buyers, I jumped at the option to just return the car.

    I rang RCI banque to discuss my options and they raised the option of return.
    I was carrying very little equity in the car, as I was well into my 3rd PCP term and my original deposit was an inflated trade in ;)

    If you are not carrying high equity, it may be an option.


  • Options
    #23
    Lantus
    Registered Users Posts: 3,027 ✭✭✭Lantus


    I'd say talk to dealer. They may take it off your hands but realistically you may need 24 months of payments before you can get a viable hand back.

    Obviously it's a huge financial loss to hand back a car like this as any asset you invested is lost. Maybe in grand scheme not too bad.


Advertisement