PCP trade in?

[S32B]

My sister is looking to trade her VW Up in for a bigger car, she has asked me the following question to which I don't know the answer, so I said I'd ask here:

For example as of today she owes £5000 on the car, between now and the new car arriving she will make another three payments on the car.
Do they work out what she will pay over the next three months and take that off today's £5000 figure. Then estimate what the car will be worth in three months time, giving her the difference as the deposit to use today to order her new car?

Thanks.

 

[Jassyo06]

ls there valuation of the VW deal based on 3 months time,even after the last 3 payments,mines was in March with the Focus/S3.......she needs to confirm this with salesperson

 

[DrEskimo]

Nah they will value the car today and you'll either get:

1. The same value as what is left to pay,
2. A value less than the amount owed so you owe money as well to settle the finance
3. A value larger than what is owed, so she will have some positive equity to use for the next deal as a deposit.

This will include the remaining monthly payments and the Final Valuation remember.

 

[vacant]

Most dealerships will be able offer a value for her trading in the car in 3 months time (assuming certain mileage and condition doesnt change etc).
If they are unable to get a forecast settlement with her payments taken into account they will instead wait until closer to delivery/handover and get an updated settlement at that point.

In terms of a deposit to order a new car, most dealers wont use any equity she has, as its non-existent until the dealer take possesion of the car, so they would usually ask for a deposit, which may be refunded upon delivery if she decided to do a deal with just her part exchange equity and no additional cash.

 

[NATOuk]

When I ordered my S3, they gave me a part exchange value and worked everything out based on the CURRENT finance outstanding.

He did say that when the car arrives on collection day they will re-assess the car value / finance outstanding and if it works to my favour they will give me that, if it is worse then they will honour the original figures (I imagine this is a goodwill gesture on their part)

I'm about to pick up my S3 and fortunately the value of my car hasn't changed but I've made two more payments since so I have some extra equity to use against the deposit.

 

[Schuey]

If it's switching to a new car and a new PCP then the only figure that matters is the equity figure and that should be based on the day of part ex, unless there is a long wait for the replacement car? So if you owe £5000 and the part ex value is £7000 then the equity is £2000 for your next deposit.

Also if you take the £5000 and made three payments of £200 a month (£600) you would probably still owe £4700 due to interest payments.

 

[S32B]

OK cheers guys, she was just after an idea of how it worked so that she knew what to expect