Dealer offering new car in exchange for mine - no extra cost

[ianfreeman]

Apologies if this is a naive question but I'm not an expert in the ins and outs of car sales!

My dealer has just called offering me a brand-new DS3 Crossback Rivoli in exchange for my 20 month-old DS3 Ultra Prestige. Both cars are petrol and have similar specs. My monthly payment would be unchanged.

Sounds like a good deal but the cynic in me wonders why they're doing it. Would anyone know why? Many thanks in advance

[Monkeylegend]

Have you asked them?

Maybe they have a customer for a 20 month old car.

[ianfreeman]

Yes, I asked them but she just waffled something about looking after good customers - I've bought a few from them over the years.

[Crusoe]

You've paid deposit maybe £2k plus 20 months x £300 or so already. Paid £8k and you are going to write that off to then start again with 48 months of the same £300 a month so another £15k you are going to spend with a lump sum or garentee value at the end maybe another £10-15k to buy the car.

On casts you around £8k more till you own the car so not a free lunch.

[ianfreeman]

Crusoe said:

On casts you around £8k more till you own the car so not a free lunch.

Hmm, yes. Not such a good deal if you look at it that way.

[edthefed]

They are doing it to make money pure and simple.

[Defcon5]

They will also get another backhander from the finance company for the new agreement

[the-norseman]

Mercedes tried this recently with my mate, 2 years into a 4 year lease, his car was brand new at the start of the lease. They offered him a 2 year newer car but second hand for the same price.

[Deep Thought]

ianfreeman said:

Apologies if this is a naive question but I'm not an expert in the ins and outs of car sales!

My dealer has just called offering me a brand-new DS3 Crossback Rivoli in exchange for my 20 month-old DS3 Ultra Prestige. Both cars are petrol and have similar specs. My monthly payment would be unchanged.

Sounds like a good deal but the cynic in me wonders why they're doing it. Would anyone know why? Many thanks in advance

The cost to you is a hidden one.

You likely have £,£££s of equity in the finance deal right now. ie, if you were to sell the car and settle the finance you'd be quids in.

That will all be consumed in to the new deal.

I'd say the new deal is at a higher interest rate too.

Also in commitment terms you've perhaps 16 or 28 payments remaining (36 or 48 month term?) and this deal will roll you back to square one of 48 months remaining.

[ianfreeman]

Thanks all for the helpful comments. Seems I've got some thinking to do...

[Deep Thought]

ianfreeman said:

Thanks all for the helpful comments. Seems I've got some thinking to do...

Ask your finance company for a settlement figure. Then plug your car in to WBAC.

That £,£££s number is what you'll be losing, plus an even bigger financial commitment at a higher interest rate over a longer time.

[anonymous-user]

There 'deals' are fine if you're only ever interested in monthly payments but it ultimately just kicks the PCP can further down the road.

[ianfreeman]

Just to close this thread off, with many thanks for all the good advice. By the time I got back to the dealer the two DS3s they had had gone! So they've offered me a DS4 Cross instead at the same money! I'll miss the DS3, but so be it! Thanks again all.

[darreni]

Takes all sorts.

[ianfreeman]

[GreatGranny]

So, you've still been suckered!

Did you look at what you owed and how much WBAC would offer?

[ilikejam]

The lease companies are practically throwing new DS3s at folk just now (Rivoli around £270/month for 2 years with no deposit), so there must be a glut of them lying unsold somewhere. Possibly a new model on the way so they're wanting rid of them.

As long as you're happy that's all you need to worry about

[ianfreeman]

GreatGranny said:

So, you've still been suckered!

Did you look at what you owed and how much WBAC would offer?

Hi GG. I don't feel like I've been suckered at all. My equity in the car is £4,800 after 20 months. The car is valued at around £22,000 by Parkers. I would have handed it back and got a new one after the four years were up anyway and my payments would be way above what I'm paying now.

So I have a new, better car for the same money, albeit with a new four year contract. By the time that's up I'll be 76 and probably won't want to drive any more anyway!

[ianfreeman]

ilikejam said:

The lease companies are practically throwing new DS3s at folk just now (Rivoli around £270/month for 2 years with no deposit), so there must be a glut of them lying unsold somewhere. Possibly a new model on the way so they're wanting rid of them.

As long as you're happy that's all you need to worry about

In my case they'd got rid of the two DS3s they had, so they're now giving me a DS4 Cross Trocedero. I pay £230 a month. There's definitely a new DS3 coming out so I think I've got a better deal than I thought I would have - so I'm happy.

[Sheepshanks]

ianfreeman said:

Hi GG. I don't feel like I've been suckered at all. My equity in the car is £4,800 after 20 months. The car is valued at around £22,000 by Parkers. I would have handed it back and got a new one after the four years were up anyway and my payments would be way above what I'm paying now.

What's happened to that £4,800? I guess they've used it to subsidise the payments on your new car. So you're not likely to be able to do the same again - which as you've said may be fine for you.


I had the same thing happen with a Honda a few years ago - I'd only taken the PCP as it was 0% and there was a £500 deposit contribution (on top of all other discounts) for taking it. Sure enough, I got a call a few mths before the end offering me a change to a new one for the same monthly payment.

However the salesman just wouldn't tell me the GFV on the new car - he kept saying it was irrelevant as "no one keeps the car for the full term". The car was on a 5 year service maint and warranty package so we just paid the GFV and kept the old one. I still don't know if I did the right thing!