Guaranteed Future Values

[blair77]

Hi folks,

Is there a way to find out certain Audis (other makes too) future guaranteed values after 3 or 4 years.

My next move on the car front depends purely on fitting into my budget, but I've noticed over the last few months that cars that have a more expensive list price aren't always that more expensive than cheaper models due to higher FGV.

It makes calculating monthly payments a bit of a guess as you have the length of term, the list price, the deposit and the APR, but without a set FGV figure there's no way of knowing for sure without contacting a dealer, and when you're trying to find the best car for your money, a lot of dealers see it as a waste of time.

A prime example is that a BE Avant that has a £2k higher list price works out at only £400 dearer over 48 months due to the higher GFV.

:D

[Chesterfield313]

A good way to check is using broker4cars website. They provide instant online quotes without giving your details and the website also shows all of the finance details including guaranteed final value.

Their discounts are generally not as good as drivethdeal, so I only use them for the finance calculations. You can alter the deposit number, mileage and term to give you the monthly payments or final value for any combination. I used to fiddle around putting in a higher deposit to take into account the bigger discounts on drivethedeal. Was a bit of a faff, with both sites open at once, but gave pretty accurate figures.

[Bash D Bishop]

Don't forget that some manufacturers finance arms will give a GFV way in excess of what it will actually be worth. There are a multitude of reasons for this but the main one is to give an attractive monthly payment without being seen to give big discounts.

When I was buying my Allroad I also looked at the E Class. The GFVs were ridiculous. I had no doubt I would be handing it back after 3 years as it would be worth less than the GFV by some margin.

My advice is don't try to second guess what the GFV is.

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[wja96]

Basically, the GFV is based on the base price of that model. Extras are worthless in the GFV estimate. So a base version of a car eg. 204PS allroad will have almost exactly their same GFV as the same car even if it's completely loaded with options.

Change to the base 245PS allroad and you get a different GFV.

Someone pointed this this out before and highlighted Ford as being masters of how to keep the GFV's right when dealing with optioned cars. They basically offer 3 levels of optioned vehicles and, when buying new you can have basic and cheap, a few options and pay a bit more or every option and pay a bit more again.

By limiting new buyers to these three routes, they guarantee the difference in values of the three models will be maintained in the used market because used buyers know that to get an option they value they have to buy a particular model.

Audi, Mercedes and BMW are almost the opposite in that every car has a different set of options which is fine new, but used buyers don't want to pay for options they don't want which effectively makes all options (except maybe metallic paint) worthless on these cars. The actuaries who set the GFVs are fully aware of this, hence the GFV of a basic car is exactly the same as one laden with options.

[M1tchy]

You have absolutely no way of knowing the future resale value of a car.

A dealer may off you a figure you find reasonable however it will be far less than what it's worth. Aston Martin offer a scheme where they will buy your car for a certain price after a certain time, however it has to meet about 300 million criteria!

Things like condition, tyres, spec and if a facelift is due will all affect your value. Some of which you have no control.


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[Chesterfield313]

The guaranteed value is still important though. I put zero deposit down and therefore can just hand the car back without worrying about where my deposit has gone. My car allowance covers it. If you put a deposit down you just have to divide the amount by the number of months and add it to the payment to get the true monthly cost anyway.

Therefore the higher the guaranteed value the better, keeps the payments down. If the car just happens to be worth more at the end and I get something back then it's a bonus.

[Splash]

Basically, the GFV is based on the base price of that model. Extras are worthless in the GFV estimate. So a base version of a car eg. 204PS allroad will have almost exactly their same GFV as the same car even if it's completely loaded with options.

Change to the base 245PS allroad and you get a different GFV.

Someone pointed this this out before and highlighted Ford as being masters of how to keep the GFV's right when dealing with optioned cars. They basically offer 3 levels of optioned vehicles and, when buying new you can have basic and cheap, a few options and pay a bit more or every option and pay a bit more again.

By limiting new buyers to these three routes, they guarantee the difference in values of the three models will be maintained in the used market because used buyers know that to get an option they value they have to buy a particular model.

Audi, Mercedes and BMW are almost the opposite in that every car has a different set of options which is fine new, but used buyers don't want to pay for options they don't want which effectively makes all options (except maybe metallic paint) worthless on these cars. The actuaries who set the GFVs are fully aware of this, hence the GFV of a basic car is exactly the same as one laden with options.Is that not where "Special Editions" play their part in the trim ladder, effectively underpinning the value at a notional trim level/set of options?

Previous C6 allroads held little appeal to me but the planets aligned with the Special Edition. The A4 allroad suffered with no leather as standard, and this has never been supported with a Technik option like the A4 SE, or Special Edition (yet). Combined with the recent discounts available on A6 it made choosing an A4 allroad uneconomical.

[wja96]

Is that not where "Special Editions" play their part in the trim ladder, effectively underpinning the value at a notional trim level/set of options?

Yes, as, as the OP pointed out, the BE has better residuals.



Previous C6 allroads held little appeal to me but the planets aligned with the Special Edition. The A4 allroad suffered with no leather as standard, and this has never been supported with a Technik option like the A4 SE, or Special Edition (yet). Combined with the recent discounts available on A6 it made choosing an A4 allroad uneconomical.

allroads are already a special model. If you want an allroad, you want an allroad I reckon.