Options after PCP Deal

[Jay75]

Hi
Just wondering what are the options when a PCP is coming to an end.

I know that you can either pay the balance or hand back


Do the supplying dealer offer a good deal to take out another PCP or would I need to shop around again. Would I start looking at changing 6mths before the end of my deal?

I know they give a GFV but has anyone had any experience of gaining more than this from a dealer?

Sorry for the dumb questions but this is my first PCP and its not even delivered yet (mid Mayhopefully) and I'm thinking 3 yrs down the line lol

All thoughts appreciated

Thanks

[chiefbadger]

I am 13 months into a 48 month pcp deal on my A6 and am chopping it in for a new S4. As long as you repay the finance outstanding, you can do whatever you like.

I put in a 6k deposit on mine and am looking at taking 4.5k back out in equity to use as a deposit for the S4. This is based on the trade in price I've been offered so could look at a private sale to try and get a bit more.

My first pcp too and have been really surprised by how flexible they are.


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[Jay75]

Thanks for the reply. Very interesting to hear this, hope it all goes well with the S4

[istate75]

I'm on my 4th PCP deal.

1st one was on a 2000 A4. It was a 3 year / 75k mile deal, but at just over 2 years in I decided I wanted something bigger as the early A4 was quite cramped. I contacted the finance company (it was Lloyds Bank at that time before Audi finance did them) and they offered a sizable reduction in what I owed because they didn't want the car back. They released the finance tag to allow me to sell it. At that time I sold it privately with 64k miles and paid off the balance, leaving some money for a deposit on the new one.

2nd one was on a 2002 A6 Avant Sport. 3 year 75k mile deal and at 3 years I starting looking for a new car, so agreed with Audi to re-finance the balloon. When they re-financed it, my payments stayed the same per month, but best of all they 'released' the car for HPI. I ordered a new car, then a few weeks before it was delivered sold it privately and paid off Audi, leaving a chunk of money to put into the new one.

3rd one was on a 2006 A6 Avant S line. 3 year 75k mile deal. My circumstances changed and I was spending a lot of line overseas and not using the car. Got to 3 years and was not ready to sell as it only had 35k miles on it, so re-scheduled the balloon with Audi to pay it off over 2 years, which I did. Kept it in total for 6 years when I then needed it for work again, so ordered another new one. I then sold the car 2 weeks before delivery of the new one privately and had a big chunk of money to put in again.

Now on my 4th on a 2013 A6 Avant S Line. 3 year 75k mile deal and am planning to re-finance the balloon for 18 months at the end but will sell it after about 6 months, so will owe very little on it. Can then pay off the balance and be left with decent deposit for new one.

My experience is that the balloon payment at the end is always less than the car is worth for trade-in to give a decent deposit. If you sell privately, you should get a decent chunk of money back. I find there's around £2k difference between what Audi offer in px and selling privately on a 3-4 year old car. On my 2006 A6, the balloon was £10k at 3 years 75k miles. I sold it at 6-1/2 years and 84k miles for £10k.

I hope that helps?

[johnsimcox]

I am on my second Audi PCP and also my second VW PCP. The Audi deals have both been based on 4 years but I changed the first one (going from C6 Avant to C7 Avant) after 3 years with there being some £2.5k difference between the trade in and the amount required to settle the PCP which went towards the new car. I currently have a new C7 Avant on order and the deal I have struck with the dealer that there will be a minimum of £2k between the trade in and the PCP settlement which will go towards the new car. On the Golf I traded that after 3 years (at then end of the term) and there was nearly £3k difference between the Trade-In and the PCP payment, although in the case of the Golf I was 6k miles under the target and with the Audi's I was about 5k miles over so that affects the trade-in value.

Very different situation with MB on an A-Class a few years ago when the best price I could get from anyone when looking for a replacement was less than the GFV (thanks in part to the deal they had done with Stelios at Easy resulting in the market being flooded with low mileage A-Classes). Ended up handing it back and arguing about the condition (MB seemed to expect the car to be returned in a better than new condition!). Almostg put me off the whole PCP thing

[Splash]

My first experience of PCP was at 1.1% so I picked the 4 year option. The dealers use "smoke and mirrors" having never previously offered the same or close support/discounts to me as a long-term cash buyer. I'm wiser now, and realise that when they contact you to turn numbers its for their benefit. I had assumed a contract is a contract, so never considered anything other than window shopping before the 4 year term approached conclusion, but they can easily sort things out for you. They'll flatter you with a PX price in excess of the admittedly conservative GFV at the end, but prior to then the market isn't so level and their offer may be relatively more to their advantage as you're still captive.

I've kept my car beyond the original 4 years and have done the same with my new one buying it within the first 14 days. I thought it was about time I had some of Audi's support even if my morals made the feeling uncomfortable. "It's not cricket..."

Normally, unless the car's uncharacteristically devalued within the term, you will only crystalise a "loss" (GFV lower than market value) if you return it without taking up the purchase/PX options. However, if the technology is still developing e.g. hybrid, e-tron, g-tron etc. then I'd like the reassurance of a GFV in case the car falls out of favour with second hand punters or the Government.

Of course, there are other advantages of manufacturer finance (see the broken sunroof thread) and also the fact that you may not want to have the car as an asset e.g. lest your ex wife demands more money... etc. etc. My mate's just about to buy a "proper" car again now the divorce has come through. ;)

[johnsimcox]

My first experience of PCP was at 1.1% so I picked the 4 year option. The dealers use "smoke and mirrors" having never previously offered the same or close support/discounts to me as a long-term cash buyer. I'm wiser now, and realise that when they contact you to turn numbers its for their benefit. I had assumed a contract is a contract, so never considered anything other than window shopping before the 4 year term approached conclusion, but they can easily sort things out for you. They'll flatter you with a PX price in excess of the admittedly conservative GFV at the end, but prior to then the market isn't so level and their offer may be relatively more to their advantage as you're still captive.

I've kept my car beyond the original 4 years and have done the same with my new one buying it within the first 14 days. I thought it was about time I had some of Audi's support even if my morals made the feeling uncomfortable. "It's not cricket..."

Normally, unless the car's uncharacteristically devalued within the term, you will only crystalise a "loss" (GFV lower than market value) if you return it without taking up the purchase/PX options. However, if the technology is still developing e.g. hybrid, e-tron, g-tron etc. then I'd like the reassurance of a GFV in case the car falls out of favour with second hand punters or the Government.

Of course, there are other advantages of manufacturer finance (see the broken sunroof thread) and also the fact that you may not want to have the car as an asset e.g. lest your ex wife demands more money... etc. etc. My mate's just about to buy a "proper" car again now the divorce has come through. ;)
A "Loss" would be when the GFV is above the market value not below (ie you have to pay more to keep the car/settle the finance than the PX value). Also a key aspect of the VAG Finance contract is that you can settle the balance at anytime with no penalties for early settlement

[Splash]

Surely if the finance is calculated at a low GFV you're handing back a car with a higher market value and giving up the opportunity to benefit from it? Assume GFV was £1 in an unrealistic PCP, extreme but you get the idea...

[chiefbadger]

I went into the PCP deal with the fairly dumb view that I could afford the monthly payment easily and would worry about what happened next in a few years time.

Seems like one of the very few times in my life where a dose of ignorance has actually worked in my favour.

Tbf I think the deals available on the a6 probably contributed to this more than any other factor though.

I'm only changing to the S4 as I went to my local dealer to enquire about an RS3 thinking 'will I be able to make the switch 12-18 months from now without a huge penalty?' The dealer was pretty pessimistic about me being able to get out of my PCP this early, but got me a settlement figure and it shocked us both. I was kind of assuming it would be a just forget about it for now scenario and instead I'm basically getting a new, higher value car for no additional outlay and an extra £60 a month.

One happy (and slightly less ignorant) boy!

Oh - gave up on the RS3 for a few years due to boot space issues in case I've confused anyone!

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