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?
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
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
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.
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.
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?
