Too good to be true PX deal?

[numtumfutunch]

I admit Im cynical and mistrusting

Son has a 2y old 3 door Mini with 2k worth of choice options booked in for first service next week

Like most other Covid cars its low mileage

He was phoned today by a salesman from the dealers its booked into for service who said they are looking for good S/H stock and so he could put him in the same car inc options for the same mothlies on a March registration

I know used prices are a bit crazy but this seems a little hard to believe
The (huge) cynic in me is suspicious he'll sign a deal and then when handover day comes will get shafted for ££££££££ with a marginally scuffed alloy and a used condom in the glove box

Or are Mini and other dealers really that desperate and its legit?

It does seem too good to be true...............

[randlemarcus]

The used market is a bit mental at the moment, but I'm not quite sure it's mental enough to mean his 2 year old model is worth the same as an 8 month old one. It COULD be that the salesman would quite like to add two sales to his tally, and is prepared to let the profit on the new one go away, in order to meet his target. It could also mean the 8 month old one has is Barbie Pink

Got to be worth a look,and it's odd enough to justify dragging Dad into it.

[numtumfutunch]

It's next March as in built to order!

'Old' car was a decent deal too, they matched Berry/Heathrow/TRL so it's definitely got me suspicious although I'm going to tag along even though he's an adult

I noticed that his car was an extensive paint, approx £600 I think at the time (it's lovely), which is now standard and you can no longer specify the HK stereo upgrade so there's a modest cost saving but even so it's still pretty unlikely

I'll report back

[bennno]

numtumfutunch said:

I admit Im cynical and mistrusting

Son has a 2y old 3 door Mini with 2k worth of choice options booked in for first service next week

Like most other Covid cars its low mileage

He was phoned today by a salesman from the dealers its booked into for service who said they are looking for good S/H stock and so he could put him in the same car inc options for the same mothlies on a March registration

I know used prices are a bit crazy but this seems a little hard to believe
The (huge) cynic in me is suspicious he'll sign a deal and then when handover day comes will get shafted for ££££££££ with a marginally scuffed alloy and a used condom in the glove box

Or are Mini and other dealers really that desperate and its legit?

It does seem too good to be true...............

Potentially nothing special here. He’s made two years of payments on current car to create some equity, which presumably is a similar value to the deposit he originally paid 2 years ago, ergo same monthly payments.

Just ask dealer to put offer in writing. Then compare both agreements side to side and check how the trade in price compares to WBAC.

[Welshbeef]

Some cars are dropping too having gone up dramatically they have also dropped notably.

[Biglips]

bennno said:

Potentially nothing special here. He’s made two years of payments on current car to create some equity, which presumably is a similar value to the deposit he originally paid 2 years ago, ergo same monthly payments.

Just ask dealer to put offer in writing. Then compare both agreements side to side and check how the trade in price compares to WBAC.

Agree with this.

I have just done the same deal with my daughters 2 year old Polo. The rise in used prices means I need no deposit and monthlies continue unchanged. I could probably get a bit more if I sold to WBAC or similar but this is so convenient as I can keep the polo until the new one arrives.

[Welshbeef]

Biglips said:

Agree with this.

I have just done the same deal with my daughters 2 year old Polo. The rise in used prices means I need no deposit and monthlies continue unchanged. I could probably get a bit more if I sold to WBAC or similar but this is so convenient as I can keep the polo until the new one arrives.

Would you be better off selling to WBAC and then negotiating a carwow discount on the new car.

The way you’ve described it is your “getting” the upside of the second hand car price rise but you are getting zero discount on the next car.

[bennno]

Welshbeef said:

Biglips said:

Agree with this.

I have just done the same deal with my daughters 2 year old Polo. The rise in used prices means I need no deposit and monthlies continue unchanged. I could probably get a bit more if I sold to WBAC or similar but this is so convenient as I can keep the polo until the new one arrives.

Would you be better off selling to WBAC and then negotiating a carwow discount on the new car.

The way you’ve described it is your “getting” the upside of the second hand car price rise but you are getting zero discount on the next car.

No way of knowing at that without asking sales person to put down offer in writing. Buy price, trade in price, length of finance agreement, apr, end balloon all not known. Hugely easy to shaft a gullible punter by only talking ‘monthlies’ I’d wager.

To OP

1. Get dealer to put offer in writing so he understands more than monthlies.

2. Get son to ring up his finance company and ask for a settlement figure, plug that number in to the wbac website so you understand what equity is in car.

3. Check what that equity / deposit buys in combination with the same monthly payments.

Then you’ll know if the convenience of the dealer offer is worthwhile.

[Welshbeef]

bennno said:

No way of knowing at that without asking sales person to put down offer in writing. Buy price, trade in price, length of finance agreement, apr, end balloon all not known. Hugely easy to shaft a gullible punter by only talking ‘monthlies’ I’d wager.

To OP

1. Get dealer to put offer in writing so he understands more than monthlies.

2. Get son to ring up his finance company and ask for a settlement figure, plug that number in to the wbac website so you understand what equity is in car.

3. Check what that equity / deposit buys in combination with the same monthly payments.

Then you’ll know if the convenience of the dealer offer is worthwhile.

It’s a good sales technique - your old car coming up to MOT out of warranty needs non standard servicing tyres pads coolant changes etc OR why not take advantage of the high values of used cars and hop into a new one and you’ll see zero difference with your monthly payments.

Or (given the Polo is clearly financed) you could take out a loan for the balloon and carry on paying the same monthlies and then say in 3-4 more yours you own it outright. Where’s hop into that new car….. it’s huge amount more cash you have to pay out for 6-8 years to come.

[Gtom]

I don’t know all the details but my sister has been offered an identical car (vw tiguan r line) for £150/month less than she is paying now on pcp.

Apparently the dealer rang her up out of the blue and said they are after low mileage stock (hers is 2 years old with 14k on it) and she could have the same car brand new at less money.

Crazy times.

[Biglips]

Welshbeef said:

Would you be better off selling to WBAC and then negotiating a carwow discount on the new car.

The way you’ve described it is your “getting” the upside of the second hand car price rise but you are getting zero discount on the next car.

Nope I have also negotiated a 1k discount off the new car too. Won’t get much more than that with anyone as it is the new facelift model that has only just been released. Dealers don’t even have demos yet

[Biglips]

Welshbeef said:

It’s a good sales technique - your old car coming up to MOT out of warranty needs non standard servicing tyres pads coolant changes etc OR why not take advantage of the high values of used cars and hop into a new one and you’ll see zero difference with your monthly payments.

Or (given the Polo is clearly financed) you could take out a loan for the balloon and carry on paying the same monthlies and then say in 3-4 more yours you own it outright. Where’s hop into that new car….. it’s huge amount more cash you have to pay out for 6-8 years to come.

Also not so in my example. I rang up the dealer to suggest the deal, not vice versa as I was interested in upgrading to the facelift model

[bennno]

Biglips said:

Welshbeef said:

It’s a good sales technique - your old car coming up to MOT out of warranty needs non standard servicing tyres pads coolant changes etc OR why not take advantage of the high values of used cars and hop into a new one and you’ll see zero difference with your monthly payments.

Or (given the Polo is clearly financed) you could take out a loan for the balloon and carry on paying the same monthlies and then say in 3-4 more yours you own it outright. Where’s hop into that new car….. it’s huge amount more cash you have to pay out for 6-8 years to come.

Also not so in my example. I rang up the dealer to suggest the deal, not vice versa as I was interested in upgrading to the facelift model

So heres the challenge, share the deal you got and lets see who can better it and by how much? So whats the car you have today {model, mileage, condition) and what model do you want to replace it with?

[Biglips]

bennno said:

So heres the challenge, share the deal you got and lets see who can better it and by how much? So whats the car you have today {model, mileage, condition) and what model do you want to replace it with?

I am sure it might be able to do a bit better BUT this method is zero stress with smooth transition to a new car with uncertain lead times. I don’t want to be left car less if there is a delay to delivery and I have punted the car on.

Equally I don’t know what trade in prices will be in the spring when the car arrives. This way I have locked in like a fixed rate mortgage deal. They will honour the deal and I have it in writing including the finance proposal. It is just a reflection of the increased equity in the second hand market. VW Taunton are the dealership, would recommend.

[un1eash]

If it's a new 2021 Polo you can still easily get 11-13% off RRP depending on model.

[numtumfutunch]

Turns out the deal was better than too good to be true!

Original car was taken on PCP with 48 identical payments and no deposit

This one matched that, main difference being lack of HK which sales guy explained was due to chip shortage

After negotiating some dealer fit magic beans in lieu of HK as promise was like for like swap we then politely asked the 500 quid paint protection and similarly stupid GAP were removed from the quote which was done without any fuss at all

Me and boy very happy although the fact that there was absolutely no hesitation in agreeing to this suggests dealer was also very happy too

Cheers

[wibble cb]

What’s HK?

• edit Harman Kardon audio….!

Edited by wibble cb on Wednesday 17th November 23:50

[CSK423]

numtumfutunch said:

Turns out the deal was better than too good to be true!

Original car was taken on PCP with 48 identical payments and no deposit

This one matched that, main difference being lack of HK which sales guy explained was due to chip shortage

After negotiating some dealer fit magic beans in lieu of HK as promise was like for like swap we then politely asked the 500 quid paint protection and similarly stupid GAP were removed from the quote which was done without any fuss at all

Me and boy very happy although the fact that there was absolutely no hesitation in agreeing to this suggests dealer was also very happy too

Cheers

You're using the part ex equity as a deposit this time plus 48/mth payments. Previously you had £0 deposit for the same monthly payment.

If the dealer was using your part ex equity as deposit I would expect the monthly payment to be less as you're financing less. Looks like the dealer is keeping your deposit as their profit.

Very hard to tell unless you see the details of the deal but from the outside that's what it looks like.

[Dan_1981]

We pick up our new ford puma tomorrow.

Chopped in the two year old focus that were were paying 229£ a month for on the back of a 229 deposit two years ago.

No deposit on the new car, and monthlies down to £202.

The focus value at part ex has made this possible.

Compared the dealers part ex to wbac and the dealer were £100 less. Couldn't be bothered to argue.

Feels like a good deal.

[Driver101]

CSK423 said:

numtumfutunch said:

Turns out the deal was better than too good to be true!

Original car was taken on PCP with 48 identical payments and no deposit

This one matched that, main difference being lack of HK which sales guy explained was due to chip shortage

After negotiating some dealer fit magic beans in lieu of HK as promise was like for like swap we then politely asked the 500 quid paint protection and similarly stupid GAP were removed from the quote which was done without any fuss at all

Me and boy very happy although the fact that there was absolutely no hesitation in agreeing to this suggests dealer was also very happy too

Cheers

You're using the part ex equity as a deposit this time plus 48/mth payments. Previously you had £0 deposit for the same monthly payment.

If the dealer was using your part ex equity as deposit I would expect the monthly payment to be less as you're financing less. Looks like the dealer is keeping your deposit as their profit.

Very hard to tell unless you see the details of the deal but from the outside that's what it looks like.

If the monthly payments are the same as the zero deposit deal, then the new deal has also started with no equity. The old car is covering the debt owed on it and nothing more.

I'm not seeing the amazing deal here. It sounds like the OP thinks his son is getting a free upgrade to a new car. He isn't. It's just a new finance deal.

Giving up the HK will be a big miss.