Vehicle PCP

[No Ney Never]

Times up, it's been a great 3 years, but a decision has to be made about the Leaf.
Pay the 10k and keep it (same car advertised for 18k in AutoTrader) or trade in for a new one?
Dealership is offering a value of 14.5k, so that would give 4.5 towards a new one.
I'm currently paying 304/month for a launch edition 2.zero model.
When everything is accounted for, I can simply give this car back and drive away in an upgrade to the new e+ for 310/month. Longer range, faster, more extras.

Was never a fan of PCP, preferring to own my car, but all the figures worked out in favour of brand new with PCP rather than a decent 2nd hand. Additionally, given how EV's are developing, I'm keeping up with the latest technology.

Has anyone successfully managed to negotiate a higher trade in value when returning a car on PCP than the one offered? Are there any key points that could work in my favour?
Just looking for any helpful advice from anyone who has been through this process before I go into battle with the salesman.

[clarethomer]

Hi NNN

Look at what We Buy Any Car are offering to understand the part-ex value being offered (Not suggesting you sell to them). You also need to consider that EVs have done extremely well from a depreciation perspective because of supply v demand keeping prices well.

You may wish to consider the following:

• In another 3-4 years there will be more supply and options so you may not get so lucky with the depreciation so don't expect this to happen again.

• Its also good to remember that you have paid for the depreciation that didn't happen. Therefore if you do not get the full value, then you have lost money.

• using carwow on your new car.

Using carwow will get you 5 offers for the car you want to buy (you can put multiple cars if you are not sure) and you will get 5 offers back offering you the car and the price which usually includes the discounts they will give you. I would contact the cheapest deal from there and ask them to value your car and see how that compares to what you have been offered.

You don't need to haggle, as the dealers just compete for your business.

What this will do is give you the power to see what your dealership is offering as a deal and use this as a starting point for negotiations and to better understand how good a deal you have been offered.

So if they are offering you 14.5k and knocking £500 off the new car, you can start to understand the value of the overall deal. You may get 2-3k off the car with another dealer and find that they will offer a similar trade in still.

[Rileybobs]

If you think you can sell the car for £18k then buy it and sell it - or is the £18k asking price on Autotrader unrealistic?

Further to clarethomer's post - I recently bought a new car. Having got my previous one through carwow which was fantastic, I tried the same again. But I wasn't getting great deals through so I worked my way through a list of similar sites and found www.coast2coastcars.co.uk came back with the best offer. They do the leg work for you then put you in touch with the most local dealership to you that they are partnered with and they take it from there. No haggling and I don't think it's possible to get a better offer. I saved £4k on the dealership price. I'd highly recommend.

In terms of selling, the dealership offered me similar to webuyanycar for a part-ex so I went down that route to avoid the hassle.

[cricketfieldclarets]

Get the car valued. Asking prices on auto trader are usually a good bit higher than what you would get from it. Especially from a garage.

Personally wouldn’t get a pcp car and can’t believe how popular it’s become. But suppose it does mean there are more, newer and safer cars on the road which can only be a good thing.

[benbfc]

I can recommend the ID3 - 3000 miles in. A step up from the e-golf and leaf and 15k cheaper than a tesla... 200 mile range in winter..

[warksclaret]

I used to train dealers on PCP as a way of selling new or used vehicles. Its not for everyone-it works really well if you are changing your car every 2, 3 or 4 years, and there is no major outlay of cash to find, meaning you are always in a new or nearly new vehicle and protected by all the warranties. There are then also a number of manufacturer support programmes specifically on PC like deposit contributions, and low APR. Sooner or later you will need to find the closing balance, in order to own it outright, or you hand the car back and owe nothing, as you should be protected by the Guaranteed Future Value (GFV)

Autotrader is a great barometer of what your car is worth, but bear in mind used cars sold through franchised dealers could be £1000-£1500 higher than you would get selling private. Used dealers will always charge less as they cannot offer the manufacturer support. There is currently a shortage of good used vehicles as business in the past 12 months has been limited through the pandemic, and people are using their vehicles less, so you may be in a good position . I say this having just sold my wifes 5 year old Rav4 on Autotrader recently-there was a lot of interest. Being retired I would now not buy a car on PCP. As has been suggested above I would get you car really presentable, get some good photography and get as much as you can on Autotrader, then you will be in a good position to use some of the avenues flagged on previous posts

[cricketfieldclarets]

I used to train dealers on PCP as a way of selling new or used vehicles. Its not for everyone-it works really well if you are changing your car every 2, 3 or 4 years, and there is no major outlay of cash to find, meaning you are always in a new or nearly new vehicle and protected by all the warranties. There are then also a number of manufacturer support programmes specifically on PC like deposit contributions, and low APR. Sooner or later you will need to find the closing balance, in order to own it outright, or you hand the car back and owe nothing, as you should be protected by the Guaranteed Future Value (GFV)

Autotrader is a great barometer of what your car is worth, but bear in mind used cars sold through franchised dealers could be £1000-£1500 higher than you would get selling private. Used dealers will always charge less as they cannot offer the manufacturer support. There is currently a shortage of good used vehicles as business in the past 12 months has been limited through the pandemic, and people are using their vehicles less, so you may be in a good position . I say this having just sold my wifes 5 year old Rav4 on Autotrader recently-there was a lot of interest. Being retired I would now not buy a car on PCP. As has been suggested above I would get you car really presentable, get some good photography and get as much as you can on Autotrader, then you will be in a good position to use some of the avenues flagged on previous posts

What’s your view on pcp. Other than if I’ve had a company car I’ve only ever owned my own and can’t understand not wanting to own it. But am I daft for not considering it?

Obviously I’m responsible for maintenance and will lose value on it. But I don’t buy it for future resale value per se.

[Lowbankclaret]

Slightly different opinion.
PCP allows you drive a car you could otherwise not afford to drive.

Not sure why people get hung up about ownership.

Most people set a budget of an amount a month, I used to . PCP was not around then or I would have used it.

If you have a £300 budget for a new car, perhaps that gets you a good spec Fiesta. Using PCP you might be able to drive a Kuga for example.

The only think you really want to own is an asset, a car is not an asset. An asset is something that puts money in your bank every month not removes it.

[cricketfieldclarets]

Slightly different opinion.
PCP allows you drive a car you could otherwise not afford to drive.

Not sure why people get hung up about ownership.

Most people set a budget of an amount a month, I used to . PCP was not around then or I would have used it.

If you have a £300 budget for a new car, perhaps that gets you a good spec Fiesta. Using PCP you might be able to drive a Kuga for example.

The only think you really want to own is an asset, a car is not an asset. An asset is something that puts money in your bank every month not removes it.

Correct. But if you own the car outright that’s several thousand a year not going out your bank. And you aren’t restricted on mileage and penalised for chips and wear and tear.

There’s pros and cons to both.

[Lowbankclaret]

Correct. But if you own the car outright that’s several thousand a year not going out your bank. And you aren’t restricted on mileage and penalised for chips and wear and tear.

There’s pros and cons to both.

Very true, that’s why I have an 02 plate that cost £600. But I can do most repairs myself.