You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
as touched on in the second hand car market thread. It used to be that at the end of a PCP term you'd give the car back and walk away. There may be a slight positive balance to the customer that was helpful as a part deposit on a new car and deal.
Or you could pay the balloon payment and keep the car.
Seems now though that there is a significant positive equity in the car, if sold back to the dealer before end of PCP and an early settlement made, or alternatively, selling to likes of WBAC and settling the PCP finance. I will be in this position later in the year, with current estimates suggesting I could be around 5k in the plus, which is great, as I am not replacing the car - I am going onto a lease though work, with Tusker.
keen to hear people's experiences, and any tips
I am not too sure what the question is that you are asking? Yes if you have a PCP from 2-3 years ago, chances are you are in a good position to purchase the car and make money.
I would be surprised if the dealer would give you as much money as WBAC.
Is the lease through work just a BIK charge to you or a salary sacrifice? If salary sacrifice I cant imagine the deal would be as good as keeping your existing PCP car, most leases have doubled over the last couple of years
Thanks, yes, interested to see what dealer and WBAC offers may work out at.
Deal is salary sacrifice, I will end up around £150 a month better off, in my pocket with new car on Tusker lease than current car on PCP. New one is an EV so BIK only £40 a month..
I cant see how a new EV on salary sacrifice will be cheaper to run than your existing PCP car but I guess the deal is done now. Watch out for the salary sacrifice sting in the tail once you complete the agreement and you keep getting charged for it in the tax year after the car goes back.
I would be contacting the dealer and asking them how much they will buy the car from you for. Obviously you will have a rough estimate already from WBAC. I've sold cars to them before and they have kept the price they said.
I know my inlaws are buying their PCP, and the dealer has been begging them to sell it to them (Audi Q3)
Went through this recently with my wifes Merc A class when it came to end of PCP. Merc couldn't offer anything competitive. We sold it through Motorway. Good, slick service, great price (better than WBAC and zero haggling from them for non existent damage), we walked away with about £5k in the bank. I tracked the car down online a week or so later, the dealership who purchased it through Motorway had it back on the market for only a few hundred more than they paid for it from us.
useful points, thanks. Current car is a Q5 on a 4 yr PCP, ending next Jan. EV though salary sacrifice is an i4, due late summer. WBAC currently offering 6k more than PCP early settlement amount (at present) though they would likely reduce a bit after inspecting car (which is mint). Will have a check with Motorway also.
My V60 was on a 4 year PCP, which ended in December. The WBAC offer was £24k, the balloon was £12k. The car is as new, low mileage because of the pandemic and ensuing retirement. I paid the balloon and kept the car, and I'll keep it until it's uneconomic to do so. I'd quite like (and could afford) a Polestar 2, but the greenest thing to do is keep what I've got.
We had a Discovery Sport from new on a 4 year PCP. About a year ago, 6 months or so before the end of the contract we sold it to WBAC and came out with about 5k cash. No hassle, paperwork and payment settlement all done by them, cash in the bank following day. The original deal with LR would have given us around 2k deposit for a new one at full term, going on prices at the time.
When we got the Disco we traded in a 1 Series that had some time left on the PCP, including some negative equity from memory (deal on the new one more than made up for that)? All sorted by Land Rover, just turned up and handed the keys over.
If it works for you financially there's nothing to worry about.
I wouldn’t make any assumptions about used car values in a year’s time based on what you're being offered now. The secondhand market is going through a real shake up.
At least it’s a PCP so you know you can just get shot of it.
If you can live without it until the new one comes, I’d sell it now whilst it’s got some equity.
Watch out for the salary sacrifice sting in the tail once you complete the agreement and you keep getting charged for it in the tax year after the car goes back.
eh? Last time I dropped out of a salary sacrifice car and back to a private one, I just went onto the HMRC website and told them the date the car went back. They immediately issued a new tax code without the car BIK.
Did the same when I went onto octopus EV. Wbac my PCP car, they settled finance and gave me the cash.
Surely you're only going to have to buy in the same market?
So Unless you're chopping in a shiny PCP'd motor to go buy a decade+ old one or just going carless you won't really be making any "profit" will you.
^^^ err, no ..
as I am not replacing the car – I am going onto a lease though work, with Tusker.