PCP End of contract - buy new car

[donkeydrop]

Hi All, could someone kindly explain how the trade in works when a MB PCP ends.
It is my understanding that a P/X for a new car does not involve any actual cash (other than any extra deposit) but uses the future value of the current car against the new trade in.

I am not STUPID but could someone explain how a trade in works with MB when a PCP contract has finished.

Love you ALL
Happy days.

 

[stevehg]

At any time in the pcp or at the end there is a settlement figure to finish the contract.

The dealer you are buying your next car from, will value your existing car, resulting in three options...
If it's over the settlement figure you can use it towards the deposit on your next car.
If it's the same then there is no benefit.
If it's less, you'll have to cover the difference, unless it's the end of the pcp contact, where you can hand it back at no extra cost. (Assuming there is no damage, mileage excess etc. to be paid for)

 

[donkeydrop]

At the risk of irritating you, apologies. Please let me give you my scenario.
My PCP expires 31.9.2016.
I would like to PX my existing vehicle for a new one.
My PCP is equal to the valuation.
No deposit.

What money would I have to find?.

 

[Little Lofty]

If your car is worth say £15k and the GFV is £15k then yes you'd have no equity. You'll have to find a deposit which could be £1000 or £10,000+ depending on what you buy and how high you are prepared your monthly to be. You don't have to wait until the 31.9.16 btw, a PCP can be ended at any time, it's only worth waiting until the end if you have negative equity, your not tied to MB either you can sell the car to any trader.

 

[donkeydrop]

Thanks Little Lofty: so if my car is VALUED at £20k and the GFV is £13500 then my deposit for the new car would be £6500 !?.
I would like to know a bit more about finishing it early if you could point me please.

 

[Rory]

Thanks Little Lofty: so if my car is VALUED at £20k and the GFV is £13500 then my deposit for the new car would be £6500 !?.

You need to find out what the Settlement figure is.

Something to be aware of with PCPs is that he GFV is only Guaranteed at the end the of the deal. It's irrelevant until you get to the end. It's not likely to be an issue here, but it sometimes happens that the car is worth less than the GFV when the agreement is ended early.

 

[donkeydrop]

Thanks to everyone who has helped on this. Nice to have some positive and reliable information from a respected forum.

Good luck to you all.

 

[Little Lofty]

Thanks Little Lofty: so if my car is VALUED at £20k and the GFV is £13500 then my deposit for the new car would be £6500 !?.
I would like to know a bit more about finishing it early if you could point me please.

Yes that's right, on the flip side if your car is worth £10k and the GFV is £13500 then you'd be wise to wait until the PCP term ends as you can hand it back. If you wanted a new car today you'd have to pay off the £3500 of negative equity. You can voluntary terminate the agreement if you meet certain criteria but that's just complicating things. You can get an automated settlement figure from MB finance, if that's who your funder is obviously, or go to any dealer and they can get it for you, they would also give a rough idea of what your car is worth. As always shop around, your not tied to any dealer or manufacturer. There is also a friendly dealer who posts on here who may be able to help you if you do want another Mercedes.

 

[stevehg]

Thanks Little Lofty: so if my car is VALUED at £20k and the GFV is £13500 then my deposit for the new car would be £6500 !?.
I would like to know a bit more about finishing it early if you could point me please.

In your example, you can do what you like with the £6500. Use all or part of it as a deposit.

 

[gIzzE]

Also, don't leave it to the last minute and get bids from other dealers and places like WBAC and Evans Halshaw, who often pay far better than the dealer who knows you are are the end of your PCP.
You are best to do it at least 3 months before the end.


Also, advertise privately. You just get the buyer to pay the finance co and you the balance. Much safer for a buyer too as they know the finance co won't be in on any scams, plus you cant get a log book loan on a car with finance already on it, which is the biggest risk buying privately these days.

 

[Evoscott]

mines just ended so i stuck it on here
2011 MERCEDES C63 AMG AUTO | eBay

 

[Areofoil]

Guys, on a similar subject, our 3 year PCP thingy will end in August. the contract was for 10k miles a year we have only done 6k. (SLK 250)

I checked the future value on the contract and it states that if you want to buy the car at the end its £17,500, our Mec dealer says the car is only worth £12500 if we were trading it in now so whats it going to be worth by August when the contract ends.

Anyway, my question is.

For £17k they can have the car back, for £ 12500 i would love to buy it as a great run around.

Im assuming all the finance company do is send the car off to auction, does anybody know of an example where the user has been able to offer the trade value at the end or will it be a case of chasing it round the auctions?

Ian

 

[gIzzE]

I checked the future value on the contract and it states that if you want to buy the car at the end its £17,500....

Is that the 'guaranteed final value'?? Or the option to purchase?

Mate, you just want to throw the keys back at them.

There is no way they will allow you to buy it for £12k, they are guaranteeing they will buy it off you for £17,000, so just let them do that and walk away from the finance.

 

[seven]

I imagine that with low miles like yours it will go into group stock. I would be quite surprised if they sent that to auction.

 

[gIzzE]

They will definitely put it into stock, and get as much as they can on it, they might even get £17k back come the summer, but right now you can buy one from Mercedes for £15900 on a 13 plate.

Problem you have now is, it is winter and snowing, and the CAP price is crap.

Regardless, they need to get as much of that £17k back, so not a chance in hell they will sell it to you for £12k, even if that is what they are valuing it at now.



http://used.mercedes-benz.co.uk/use...0-cdi-blueefficiency-gatwick-for-sale-ve13enj

 

[Deleted member 6183]

At £12.5k I'll have 3.

My Mrs is in the market and ones a year or more older are £15k.

 

[Piff]

They will definitely put it into stock, and get as much as they can on it, they might even get £17k back come the summer, but right now you can buy one from Mercedes for £15900 on a 13 plate.

Problem you have now is, it is winter and snowing, and the CAP price is crap.

Regardless, they need to get as much of that £17k back, so not a chance in hell they will sell it to you for £12k, even if that is what they are valuing it at now.



http://used.mercedes-benz.co.uk/use...0-cdi-blueefficiency-gatwick-for-sale-ve13enj

Our SLK 250 CDi has just over 20k, on a 13 plate and has a GFV of £20750.
Guess where it's going in April..................

 

[Little Lofty]

I take it all the silly cheap lease cars are hitting the market and killing prices??

 

[Deleted member 6183]

I take it all the silly cheap lease cars are hitting the market and killing prices??

Ideally yes, not so from a buying POV.

 

[Areofoil]

Guys, thanks for the feedback.

My understanding is that the cars go back to Mercedes finance and your local dealer doesn't get a look in but im might be being told the wrong thing

Here's the link to Mercedes online valuations that brought mine in at £12,500 so by the time we have added another 5000 or so it should be cheaper still.

Sell my car | Mercedes-Benz Retail Group

We need somebody on the inside to tell us how to get them for that ?