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Trading a PCP car in early


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Hi guys, anyone know where I will stand with this?

 

I've got a 17 plate facelift manual had since end of April, however I'm now thinking I should really have gotten a DSG!

 

My question is, what would be the process of swapping my new car, for an even newer one, considering I put a roughly 9k deposit down all in, I should be in positive equity right and make it pretty much a straight swap?

 

Obviously I'll have to give the dealer a ring to work things out properly, but is my logic right or will I be severely out of pocket?

 

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Depends on the deal you got on the car in the first place. I've traded in two Audi's in the past within 18months of taking out 4 year PCP deals and came out on top in one case and lost a couple of £k in the other. Both with £5k deposit down.

Best thing you can do is stick the car on tootle, see what offers you get and at the same time use carwow (or whoever) to get the best deal on a DSG.

If the initial deal you got wasn't great, I'd say you're going to really suffer financially. If you got a decent discount, you might find you only lose a minor amount.


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Make sure you do your homework because you can get seriously stung financially trading in early.

I got hammered by negative equity on my Leon FR+ tdi a few years back but then that was an absolute nightmare financially from start to finish because I didn't do enough homework and get rinsed by the seat dealer initially.


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The PCP's are designed to run to the end. This is one of the pit falls of a PCP, trying to end early can be very expensive.

As already said, it depends on deposits and value of current Golf R.

Every PCP is different as it is circumstantial. 

The first call is to dealer, run it by them.

I have a friend who ended a PCP early on a Land Rover (horrible car! IMO), the dealer was offering peanuts leaving negative equity. In the end he sold it through we buy any car and came out with cash in back pocket. 

So whatever dealer says, keep an open mind.

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You would probably be best obtaining alot lower interest loan for the settlement figure amount. Im sure you can settle the pcp early as it is after all just another form of finance is it not? I always thought that as long as you pay back the credit in full and max two months interest on top (that is by law the most they can charge for settlement) that it would then clear it would it not?That way yes your still left with the debt but paying less back overall, this would also allow you to trade the car in with no issues. If you take a larger loan than needed you can add the left over to whatever your trading against. Ive always gone with a personal loan as it most always works out cheaper in the long run.


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Use the dealers online car value service, gives you an idea of px price. I recon if you paid 32k in April with 9k down your settlement should be around 22k.

Your car is probably worth px around 27k giving you 5k equity. 

I've found that roughly  2/3 of the monthly finance payment goes towards paying it off, the rest being interest.

I've been in this situation a few times, only been in neg equity once (Fiesta ST), generally loose some cash. Buyers remorse is tough but to get what you really want you just gotta swallow the loss. However that loss is softened by the initial deal you got.

I have DSG and its great but it does take some involvement away, making the R even more clinical. Also I find the DSG doesn't select the gear I'd normally use in most situations, can be a little frustrating. And dropping 3 gears when you floor it annoys me especially in manual mode. I guess I do miss manual. 

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