Paying the balloon

[V8mate]

Please excuse if I use any terminology incorrectly... I'm sure you'll get the gist of the question.

My daughter 'bought' a VW Up! on a four year PCP(?). She's three years in, and would like to keep the car when the 48 months expire next November. She has started putting money aside to meet the GFV sum.

I can't think of any reason why the answer to my question would be 'yes', but I thought I'd ask anyway: come next November, is there any scope of acquiring the car for less than the GFV from VWFS? Or is it always a simple 'take it or leave it' situation?

[TooMany2cvs]

V8mate said:

is there any scope of acquiring the car for less than the GFV from VWFS?

Well, everybody involved in the deal - including her - did kinda agree that was the absolute minimum it'd be worth...

[AgentZ]

Depends what the GFV is, really. It might very well be the case that it would be quite a bit cheaper to give the car back and buy a same age one.

I currently have a Mii Sport on a decent 3 year, 0%, 3 year servicing PCP and a few months ago inquired about part exchanging for another car the supplying dealer had in and soon changed my mind. At 17 months old the car is was valued at £4,100 with GFV/final payment of upper 5K IIRC....the negative equity is strong (and payback for the 0%, 3 years servicing).

I'll be giving it back and buying a used car outright at the end of the PCP.

[Sheepshanks]

V8mate said:

Or is it always a simple 'take it or leave it' situation?

I've seen this question asked a lot and never heard of anyone getting a lower price.

There was a rumour BMW did it when the market fell on its arse in 2007/8 and cars were worth way less than GFV but I didn't see any definite confirmation.

[Sheepshanks]

AgentZ said:

Depends what the GFV is, really. It might very well be the case that it would be quite a bit cheaper to give the car back and buy a same age one.

You'd probably have to buy privately to achieve that - dealer margin would likely put the price of similar cars back up to the GFV.

[AgentZ]

Sheepshanks said:

You'd probably have to buy privately to achieve that - dealer margin would likely put the price of similar cars back up to the GFV.

In the main, yes. Although there is one the same age as mine from a dealer on AT up for £5,300 right now. I think my GFV is like £5,700....

I bought a 107 outright in 2007 for £6,200 and PX'd in at 5 years old for £3,200 so £3,000 dep over 5 years was nice. ~£6,000 in 17 months on the Mii isn't!

[steve-5snwi]

What happens if you increase the mileage, it will put the monthly payments up but should reduce the end payment.

[V8mate]

steve-5snwi said:

What happens if you increase the mileage, it will put the monthly payments up but should reduce the end payment.

Bit late to play a mileage game; she's only done 14k in 3 years... part of the reason why it's a good thing for her to fully acquire.

[codenamecueball]

Won't they offer a new model on a shiny plate for similar monthlies?