I'm in a slightly unusual company car scheme that's ending - it's an employee ownership scheme which is basically a PCP but I don't have the logbook. At the end of the scheme there's a GFV which in my case leaves a bit of equity - trouble is I'm not sure if I can access it.
The GFV is c£18k and the trade in value is around £22k. I'd obviously like to use that equity as part of the deposit on my next car. Trouble is the scheme people say that I have to settle the balance before they'll send me the logbook - which I'll need to trade it in. Now I could probably lay my hands on the money, but I don't want to put that big a deposit down - I was thinking about the £4k in the car plus another £4k or so - meaning I'd have to buy the car, trade it in for (say) £22k against a £32k car leaving an initial balance of £10k to finance. However I really want £24k on finance (ie the £18k to buy the car less the £4k I want to put in) so I want another £14k back.
Question is - is a finance company likely to be able to cope with this relatively complex situation and do the finance based on £22k but with £14k of it coming to me as cash? Or alternatively would the dealer be able to do something? It just seems a shame to hand back a car with a few grand of equity in it (and I know I might be wrong about the equity - but I understand XF's are holding their value reasonably well and it's very low mileage).
I did say it was unusual...
Thanks in advance!
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Who is the finance company and have you located the car you want to buy?
Have you asked the existing finance house whether they can do it or are willing to do it? If not I can speak to my F&I people and get them to call you - probably between Christmas and New Year to see if they can do anything.
I will need contact details sent to asklucy@honestjohn.co.uk
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thanks. I'm test driving a BMW between xmas and new year so I'll talk to the dealer then (so BMW finance initially) - just wasn't sure if this is something anyone else had come across.
In theory it doesn't sound too difficult - but then again I was surprised the people who run the scheme (now Lex) said they would ONLY accept payment from me before releasing the logbook. As it's done through a company (and a big one at that) you'd think they'd be able to do something.
A riskier solution would be for me to buy it, then sell it myself and then buy the new car - even "we buy etc etc" have suggested they'd give me c£3k more than the GFV (although I'd be nervous about them knocking me down if I needed to sell and finding myself out of pocket).
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I would doubt BMW Finance or indeed any of their dealers would be that creative.
Personally I wouldn't sell anything based on an initial offer from We Buy Any Car as the usual ruse is to pitch the initial bid high and then drop it afterwards on grounds of "faults" or condition.
The are part of UKCGR - UK Car Group Remarketing - which also owns Carcraft - that fine upstanding car supermarket - and seem to share their business morals.
If you want to sell the car to a trader try someone like CarArena which acts as an intermediary operating a bulletin board where numerous traders make offers.
www.cararena.co.uk
There is a clear risk to anyone who is asked to give you the money to pay off the finance if Lex will only accept the payment from you - I cannot imagine why they want to operate this way unless it is some attempt to lock you into them (or make it difficult for you to move) for your next vehicle. Were that the case though it may be anticompetitive and hence possibly illegal.
Come back to me when you have made your decision on your new car? Have you yet decided how you want to finance it?
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I'd assumed that we buy etc would be a bad idea and would try to get you in and then knock you down - and one of the internet dealers I'd spoken to reckoned their dealer would only give me a few hundred quid more than GFV - so it may be that it won't work anyway!
Looking at a new X3, and probably on a long HP deal (as the new CCA regs mean you can pay lumps off as ans when) with a deposit of about 20% or so.
The scheme's a work one - so I guess that when it was set up they expected people to take another onewith them, but now the scheme's ending we have to go elsewhere.
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