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Part ex car with hire purchase

gray_fox627 Apr 30, 2017

  1. gray_fox627

    gray_fox627 Registered User

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    I've landed a new job with gives me a car allownace, so looking to ugrade my current A3 2011 to a newer A3. But I'm getting confused with how part ex works with a car on hire purchase.

    The settlement figure is £6073, and an estimate part ex value approx £7500 (i need to go to the dealer to get an exact figure). The new car I'm looking at is around £13000 and I'm going to go through the same dealer who arranged the hire purchase as well.

    Am I right in thinking the part ex value of £7500 will go towards the deposit of the new car and I have to pay whatever is outstanding?
     
    Last edited: Apr 30, 2017
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  3. Arcam

    Arcam Registered User

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    Unfortunately not, you are just over £500 in negative equity. If you push the dealer they should pay off the settlement and you will then just need a deposit, which I am sure the dealer will help with as well ;)

    Sent from my SM-N910F using Tapatalk
     
    gray_fox627 likes this.
  4. Rich76

    Rich76 Registered User

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    The dealer needs to appraise the car, you may find if it's a nice car that they can sell on the will give you more than the settlement

    Where have the got the £7500 figure from?
    Is that what similar cars are selling for?

    Anything they give you over the settlement can be used as deposit in the new hp deal
     
  5. gray_fox627

    gray_fox627 Registered User

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    Yup, I looked at similar cars and used some valuation websites to get approx figure. Thanks for the clarifcaiton guys, makes a lot more sense now.
     
  6. Rich76

    Rich76 Registered User

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    If that's what they are selling for online then you would be looking to get £1500- £2000 less than that as a part exchange figure.
     
  7. AudiSpy

    AudiSpy Administrator Staff Member Administrator

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    If your settlement is £6k and your part ex value is £7.5k you have £1.5k in equity. So if you trade it in the dealer will pay off your old HP agreement getting rid of that and then ideally carry your £1.5k over to your new car as a deposit, leaving you with the rest to finance of circa £11.5k.

    As some added advice do have a look at the APR rating the dealer is offering you as bank loans are coming in good at the moment. Normal dealer can be 7% ish and a bank loan can be had for 3%. Although it only makes £20 a month difference over say 5 years that could be £1.2k in pure interest!

    Does that help?
     
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