Guaranteed Future Value, Final Payment

[h2000]

Looking on a PCP deal on a RS6. Never done a PCP deal before and have some questions....

The final payment is 43k on a 3yr deal with 30000 miles. Realistically, when you take the car back, what does the dealer offer you above that amount, is it it dependent on a number of things?

Do you have to go back to the dealer where you got the car or can you go to any audi dealer?

Is getting a new car at the end of the term the most popular choice of things to do?

Is there an option of selling the car privately at the end of the term to get more than the dealer offers you? How can you do this when there's outstanding finance on it.

 

[cabbychris]

You cant sell it privately,the whole idea of a pcp is that the dealer wants you to come back for another car ,then change it for a new 1 in 3/4/5 years what ever your pcp is,usually you have a set payment each month for how ever long you take the pcp deal for,then at the end of it there is option to buy it outright with the balloon payment (final) or hand it back and walk away or use whatever they have guaranteed value of the car at come the end of the pcp,so if the car is only worth 10k but they have put a guaranteed value of 12k then you have 2k as a deposit for another deal.

 

[h2000]

That's not right. If the car is worth 10k, and there's a GFV of £12k, you hand the car back and get nothing. To get a £2k deposit on the next car, it would have to be worth £14k.

 

[cabbychris]

That's not right. If the car is worth 10k, and there's a GFV of £12k, you hand the car back and get nothing. To get a £2k deposit on the next car, it would have to be worth £14k.

so who gets the 2k of the gvf of 12k,because when i went to school 12k-10k =2k????

 

[h2000]

The car is in negative equity if it's worth £10k and there's still £12k owing on it. The £12k is guaranteed by the dealer, he takes the £2k loss.

Under your logic, if you've ragged the **** out of the car and at the end it's worth only £1000, you'd get £11k deposit toward your next car.

You only get a deposit on your next car if it's valued at more than the GFV, not less.

 

[cabbychris]

What ever, he get the general idea

 

[AudiSpy]

The final payment is 43k on a 3yr deal with 30000 miles. Realistically, when you take the car back, what does the dealer offer you above that amount, is it it dependent on a number of things?

- Hard to say really, if you get a good enough deal in the first place this will put you in a better situation at the end, plus help your equity/parity state along the way. Meaning after 2 years your car could be worth more than your outstanding finance and the dealer would call you up and ask if you want a new one or something else.

Do you have to go back to the dealer where you got the car or can you go to any audi dealer?

- Pretty sure any dealer as the PCP is with the bank of Audi itself. Although your dealer you purchased it from will have all your details.

Is getting a new car at the end of the term the most popular choice of things to do?

- Usually yes, although you don't have to get the same.

Is there an option of selling the car privately at the end of the term to get more than the dealer offers you? How can you do this when there's outstanding finance on it.

- There is always a settlement figure so you could effectively buy it out this figure can be obtained from Audi finance.