PCP Valuations

PCP Valuations

Author
Discussion

mh125

Original Poster:

79 posts

81 months

Thursday 21st March 2019
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Well 2 years into my 4 year pcp my car is now only worth the settlement figure in part exchange at a Bmw garage. So in 2 years time I’ll definatly be handing it back or looking to VT in about a year. Quite eye opening really.

dc2rr07

1,238 posts

238 months

Thursday 21st March 2019
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Was this at the same garage you purchased the car at.

E-bmw

9,979 posts

159 months

Thursday 21st March 2019
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Never saw the point in PCP myself, I leased a few years ago & it was cheaper, less hassle & none of that stress for the end of the deal..

dc2rr07

1,238 posts

238 months

Thursday 21st March 2019
quotequote all
E-bmw said:
Never saw the point in PCP myself, I leased a few years ago & it was cheaper, less hassle & none of that stress for the end of the deal..
All depends on people’s situation and what deal is on offer, if a dealer is doing zero finance and it something you want why not.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
dc2rr07 said:
Was this at the same garage you purchased the car at.
No it was at 2 separate Bmw garages with Mini affiliations.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
The situation is I’m suffering from arthritis in my left foot so have been considering an auto. I knew I would still be in negative equity but I was unsure of how much and I thought I might roll £1500 or so in to a new vehicle. For the car to only be worth the settlement figure now means in 2 years I think it will be worth about £4000 against a settlement figure of just under £7000. VT may be an option in a year but I do adsolutly love the car and I would be be reluctant to part with it. I just hope I can keep the arthritis under control mind you it helps massively to drive in soft shoes or trainers.

stevemcs

8,993 posts

100 months

Friday 22nd March 2019
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How old is the mini ? Have you put the details into wbac ?

Sheepshanks

35,056 posts

126 months

Friday 22nd March 2019
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mh125 said:
For the car to only be worth the settlement figure now means in 2 years I think it will be worth about £4000 against a settlement figure of just under £7000.
I might be missing something here, but the car’s value should pretty well track the settlement figure.

If you’ve been offered the chance to get out of the car at no cost now then that’s probably quite good, unless you paid a significant deposit.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
stevemcs said:
How old is the mini ? Have you put the details into wbac ?
It is a 64 plate SD I’ve not tried wbac partly due to the excellent condition and the high spec of my car. I think used values of diesels have taken a hammering. I’m happy to keep it and manage the arthritis. I think the lesson on pcp is that you need to keep the deposit as low as possible and keep it the full term. Moving forward I’ll be in a good position with no part ex when the time comes.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
Sheepshanks said:
I might be missing something here, but the car’s value should pretty well track the settlement figure.

If you’ve been offered the chance to get out of the car at no cost now then that’s probably quite good, unless you paid a significant deposit.
I’ve not been offered the chance to get out of the car at no cost the car is now with £7000 part ex which is the settlement figure in 2 years!

Sheepshanks

35,056 posts

126 months

Friday 22nd March 2019
quotequote all
mh125 said:
I’ve not been offered the chance to get out of the car at no cost the car is now with £7000 part ex which is the settlement figure in 2 years!
OK - you’re using confusing terms. Settlement is what it would take to close the deal early. At the end of the deal it’s ‘optional final payment’ (used to be called GFV).

I see now it wasn’t new when you got it - PCP doesn’t really work on used cars.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
Sheepshanks said:
OK - you’re using confusing terms. Settlement is what it would take to close the deal early. At the end of the deal it’s ‘optional final payment’ (used to be called GFV).

I see now it wasn’t new when you got it - PCP doesn’t really work on used cars.
Sorry about the confusion I’ve no problems with how pcp works however I’m really quite shocked at the money the cars lost. At the end of the agreement the car will be approx 7 years old with 80k on with a trade in of £4000. Considering the car is loaded with options and lovingly maintained at no expense spared that would seem very disappointing.

Sheepshanks

35,056 posts

126 months

Friday 22nd March 2019
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mh125 said:
Sorry about the confusion I’ve no problems with how pcp works however I’m really quite shocked at the money the cars lost. At the end of the agreement the car will be approx 7 years old with 80k on with a trade in of £4000. Considering the car is loaded with options and lovingly maintained at no expense spared that would seem very disappointing.
They've set the GFV far too high. In one way this is good for you as it makes your monthly payments slightly lower than if it had been set correctly.

I suspect that, overall, the deal is horrible though. Like I said, PCP isn't really for used cars - it was designed to shift new cars and on those it often has subsidised deposits and interest rates.

stevemcs

8,993 posts

100 months

Friday 22nd March 2019
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I'd still run it through WBAC, it always asks about desirable options, true you won't get top money for it but it will give you a reflection of the market. I looked at changing my R55 CLubman Cooper S again with a high spec last year, the dealer offered £4750 for it, bear in mind mine is a 2010 model with 62k on the clock and that was against a used Clubman advertised at 17k.

mh125

Original Poster:

79 posts

81 months

Friday 22nd March 2019
quotequote all
Sheepshanks said:
They've set the GFV far too high. In one way this is good for you as it makes your monthly payments slightly lower than if it had been set correctly.

I suspect that, overall, the deal is horrible though. Like I said, PCP isn't really for used cars - it was designed to shift new cars and on those it often has subsidised deposits and interest rates.
From my point of view it was a great deal the car was under similar vehicles with less spec and the interest rate was very competitive for a used vehicle in fact it was a couple of percent less than I was offered elsewhere on similar vehicles. The point of my post is not complaining about pcp or the deal I got it is more the poor trade in values on offer and that the car will be worth about £3000 less than the gfv at the end of the deal.
PS webac £800 more than 2 bmw garages prepared to offer.

mike74

3,687 posts

139 months

Friday 22nd March 2019
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Rent in haste, repent at leisure.

As the saying sort of goes.

Sheepshanks

35,056 posts

126 months

Friday 22nd March 2019
quotequote all
mh125 said:
PS webac £800 more than 2 bmw garages prepared to offer.
That's interesting. Dealers will wonder in a few years time why they don't exist any more.

dc2rr07

1,238 posts

238 months

Friday 22nd March 2019
quotequote all
mh125 said:
dc2rr07 said:
Was this at the same garage you purchased the car at.
No it was at 2 separate Bmw garages with Mini affiliations.
The garage you did the initial deal at is what counts, they are the people you should get a value from.

Nick67

222 posts

250 months

Saturday 23rd March 2019
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Interesting as I was curious as to the value of ours and possibly trading against a new JCW. Had a chat with the supplying dealer, when it came to price, all the salesperson said was look at WBAC and that is what we would offer. Now Mini must be the only car that has some many permutations when it comes to options, I could not see that option on the WBAC site.

I will try a different dealer and see if their attitude is any different!!!

As an aside is the Mini extended warranty worth it?

mh125

Original Poster:

79 posts

81 months

Saturday 23rd March 2019
quotequote all
Nick67 said:
Interesting as I was curious as to the value of ours and possibly trading against a new JCW. Had a chat with the supplying dealer, when it came to price, all the salesperson said was look at WBAC and that is what we would offer. Now Mini must be the only car that has some many permutations when it comes to options, I could not see that option on the WBAC site.

I will try a different dealer and see if their attitude is any different!!!

As an aside is the Mini extended warranty worth it?
I would recommend the extended warranty I have it in mine and my other halfs previous mini had about £5000 of work done over 3 years on the extended warranty. It is not cheap but we never had any issues it’s piece of mind although others would say bank the money for a rainy day. We have had 6 minis over the years and a couple have had serious issues.