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Discussion Starter #1
I took the 3 year pcp plan on my high up, when I take it back in 3 years time what do you think the value of the car will be.<div sab="883">I was told by the salesperson that there would be equity in the car which would go towards a deposit for a new one, assuming the car was in good order, this is the first time I have leased and wonder if anyone that has leased before could tell me of their past experiences many thanks.
 

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The final figure/amount to purchase on a PCP agreement is the least your car will be worth based on current used values, but in reality should be worth somewhat more, depending on mileage and condition. However, if you have added lots of "extras" to your car, that will not add much, if anything to the future value.

Most VWs, especially small economical ones always hold their values, so you should at least expect your car to be worth more than the final value figure, which you can use as a deposit on another car/pcp plan.

As the Up has only recently been launched, there is no used guide price yet but I would be very surprised if an average mileage UP was not worth at least 65% of it's basic retail price (not including extras) in 3 years time. Hope that helps.
 

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Discussion Starter #3
Thanks Truth - Seeker Ihave the high up with the maps & more and the spare wheel as the only extra, I only expect to do around 25-30 thousand miles in the 3 year term and hopefully look after it well. Heres hoping they manage to find me a decent part of my new deposit.
 

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I too have just ordered a High Up 3 (3 door auto) on the 3 year VW Solutions finance package. I am putting down the maximum 30% deposit (from my p/ex) and the final payment is £5672 with 5k a year annual mileage. I would like to think that the trade value against another VW will be around the £7k mark.
 

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The sales staff of every marque always claim equity at the end of term. I personally have never experienced it but then I never put in a particularly big deposit so I expect that's the issue. My last car (Smart ForTwo) was in negative equity so I handed it back and walked away.
 

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I would expect £500-£1000 worth of equity. The up! is holding its value quite well although some slippage downward is to be expected as there are more about. But VW does seem to be good at holding value's on most of it's range.
 

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My wife had a Fox on a 3 year PCP. We swapped it for a Take Up in March at 2 years in and the trade in covered the balance. As the Up should hold its value better than the Fox, there should be no problem there.
 

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If you can afford it, one way of improving the chances of a reasonable amount of equity is to increase your anticipated mileage. This will increase the monthly payment slightly and will reduce the balloon payment, but will increase the actual value of the car when it comes time to trade-in - resulting in a positive gap between outstanding amount and value.

The up! should be OK, but my previous car was in a £2,000 minus equity situation, so like a previous contributor I returned the car and walked away.

One other thing to bear in mind is that the value of any extras will be added to the monthly payments and will not be reflected in the final balloon payment - so they will have a big impact on the monthly payment but you may not get any value from them at the end of the contract. It is often better to contract a high spec model with a known list price (and market value) than a lower spec car with lots of options.
 

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Discussion Starter #9
I am still not entirely sure how this all works, I paid £10,860 for my high up with a £2300 deposit I pay £141 per month and my purchase price at the end is around £5000.<div sab="877">So if my car is valued at £6500 would I get £1500 towards a deposit on a new one many thanks.
 

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That's exactly how it works. The difference between the actual value of the car and the agreed value (final payment ) goes towards the deposit for the next one. So as you say, you'd get £1600 in that case.


I've had all my recent new cars this way and it's always worked out well.
Edited by: Allybasher
 

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I just wondered what folks think the optimum time would be for trading in a car on a PCP deal? Two years in or nearer the end of the time at three years?

I would be tempted to trade my car early when the mileage is still below 30k miles if, financially, I would be better off. If I wait to the end of the PCP period I will be at roughly 36k miles. With this higher mileage I kind of expect to get offered 'bottom dollar' for the car come trade in time.
 

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Assuming you're talking about staying with the same VW dealership, I don't expect you'll have the choice. The choice rests squarely with the dealership and if they decide that there's not enough equity in the vehicle then you won't get the offer. I'd like to trade in my PCP a year early too. Who know's if we'll get lucky until the time comes.
 

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It really depends on what you owe and how much the car is worth. It's really as simple as that. If you can afford to pay off the car and sell privately, that's sometimes your best bet.
 

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Supermegamonkee said:
It really depends on what you owe and how much the car is worth. It's really as simple as that. If you can afford to pay off the car and sell privately, that's sometimes your best bet.
I take it that means that those of us who paid for it whole at the door are even better off? :)
 

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No - it means borrow the money elsewhere if you need to, or if you can use savings to pay on the early settlement figure on the PCP, then sell privately. I did this on a VW California and got "several" thousand pounds more than the p/ex offered.
 
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