Car value at end of PCP?

Honest John Back Room » Motoring discussion
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Tue 26 Apr 2011 22:54
Car value at end of PCP? - davecooper

What sort of valuations do dealers make on cars handed back at the end of PCP deals? If the car is in good condition, can you expect the typical part ex value? My current car, which is on a personal contract, is due to be handed back at the end of August. The minimum future value is around £4000 while the trade in value is around £6000 and the private sale value a further thousand more.

I am not sure where I am going for my next car and have not been in touch with my current dealer yet. Before I do, I just want to get an idea of how these cars are valued so that I can consider other avenues should I not be happy with the dealer valuation.

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Wed 27 Apr 2011 05:09
Car value at end of PCP? - oldroverboy

If you like the car and are sure you can get more for it you can settle the pcp contract yourself, but the dealer won't give you more than the agreed future value. you might get some help toward a new car if you buy from the same dealer, but as I am sure you are aware you have paid extra for the car in interest charges, better use the cash plus a bit more and get yourself a hyundai or Kia (others do it too) and use the 40-50% deposit to get interest free finance. you could always ask HJ himself... tell him (and us) what your budget and requirements are, and look for some of the free servicing deals too. Think about it and don't act in haste. happy Motoring.

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Wed 27 Apr 2011 09:26
Car value at end of PCP? - davecooper

I have someone interested in the car at the trade in price so happy to sell to him, pay off the finance and use the difference for my next car. The likelihood is I'll stick with a Mazda 2 this time round as for me, there is nothing out there that really betters it at the moment.

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Wed 27 Apr 2011 11:07
Car value at end of PCP? - bonzo dog

but the dealer won't give you more than the agreed future value

Hi Old Rover Boy, obviously the dealer will try to take the car for the Guaranteed Minimum Future Value (buy cheaper than you can sell is business), but as the name suggests, this is a minimum. The dealer will treat the car as any other PX when it comes to "doing a deal".

The big advantage the OP will have in selling the car privately will be the discount he can negotiate on his next purchase

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Sat 7 May 2011 13:54
Car value at end of PCP? - mick-h
Clearly any dealer will want to bring in a p-ex at the minimum possible price and then do you a deal on another car at the maximum possible price - giving you the minimum discount they can get away with so that they make the maximum possible profit.

Being on a contract you are, to a certain extent, locked in to them (unless you sell privately and then settle) but the deal you get from them, or anywhere else, depends on your ability to haggle hard and screw down the best possible deal you can. Most people don't realise just how far you can push a dealer for a better and better deal. Yoy just need to be able to say "NO!" and confidently push for more. A quick search came up with this good "tactics" website - www.carbuyingguide.org.uk
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Sat 7 May 2011 23:15
Car value at end of PCP? - Avant

They can't give you less than the MGFV, but they can give you more. True, they won't want to - but if they have the chance to sell you another, and (particularly) if your trade-in is one they can sell from their forecourt, they may give you something which could form the deposit on your next car.

Dealers are usually a bit more generous if you're going for the same make again from the same dealer.

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