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Discussion Starter #1
Hi All,

I keep reading in the forum that folks buy an UP and then almost immediately decide to trade it in or upgrade to a higher spec up. Are you on PCP? How do you upgrade just months into your contract?
 

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There is a minority of owners who fail to properly research before purchasing their car. As a result they are disappointed when they find the car lacks what they consider to be indispensable features. Their only option is to upgrade or modify. As a rule dealerships are only too pleased to take back a car on PCP and replace it with a higher specification because they invariably do well financially on the deal.
 

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You can change your car anytime on a PCP but bear in mind it'll be in negative equity for quite a while. When you drive the car away it'll lose a lot of money so it takes a while before the monthly payments catch up. I went from a Golf to my Up and it was 19 months before I could pass it back without penalty.
 

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Discussion Starter #4
Thanks all.
Beevee - I notice you have an ASG. I don't want to divert from the purpose of this thread, but I should ask you in a private message what you feel around all the negative press the ASG has received.
 

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Hi all, i'm in the process of changing my 16 months old move up for a high up. Reason is i bought it on a PCP with a certain mileage allowance that was easily enough for my needs. However, last December my commute increased from 4 miles to 40 miles and the mileage allowance became inadequate. Once you have made a PCP agreement you can't change the mileage allowance - I asked. So my otions were to negotiate a new contract on the existing car or negotiate a new contract on a new car. This gave me the opportunity to specify the exact spec that, after a year of ownership, i knew was right for me.
 

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AlanG said:
Hi all, i'm in the process of changing my 16 months old move up for a high up. Reason is i bought it on a PCP with a certain mileage allowance that was easily enough for my needs. However, last December my commute increased from 4 miles to 40 miles and the mileage allowance became inadequate. Once you have made a PCP agreement you can't change the mileage allowance - I asked. So my otions were to negotiate a new contract on the existing car or negotiate a new contract on a new car. This gave me the opportunity to specify the exact spec that, after a year of ownership, i knew was right for me.

Hi Alan, I thought that the mileage allowance only really mattered if you want to give the car back at the end of the PCP. I've gone well over the mileage allowance on other cars in the past and it hasn't even been mentioned when 'upgrading' to a new car.
 

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Umiamz said:
AlanG said:
Hi all, i'm in the process of changing my 16 months old move up for a high up. Reason is i bought it on a PCP with a certain mileage allowance that was easily enough for my needs. However, last December my commute increased from 4 miles to 40 miles and the mileage allowance became inadequate. Once you have made a PCP agreement you can't change the mileage allowance - I asked. So my otions were to negotiate a new contract on the existing car or negotiate a new contract on a new car. This gave me the opportunity to specify the exact spec that, after a year of ownership, i knew was right for me.

Hi Alan, I thought that the mileage allowance only really mattered if you want to give the car back at the end of the PCP. I've gone well over the mileage allowance on other cars in the past and it hasn't even been mentioned when 'upgrading' to a new car.
I always want to give the car back because in the 3 years i've had it, generally my needs have changed or a much better car has come on the market. I love the fact that it's not my car and i can simply give it back. If the car develops any problems, then it causes no anguish. What do you think my response was to the salesman who tried to sell me lifeshine on a car i will never own!?
 

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Always check to see what the car is worth before you simply 'give it back'. If it's worth more than the final rental (or MGFV) then the equity will help the deposit on your next car, regardless of what it is or how you fund it. Eg if the final rental is £3900 but the car is worth £4400 you have £500 towards the next car. You should only use the option of 'handing it back' if the cars value has dropped below the final rental. Note you are not tied to the same dealer/marque.

The car can be traded in mid term to answer the OP provided all outstanding payments inc. the final payment are covered by the value of the car with any shortfall paid by the customer. It's like any other finance agreement in that respect.

The final rental is the settlement or outstanding balance due at the end of the primary payment period. The finance company has simply agreed to cover that amount if the car is handed back in good condition if the value has dropped.

Most manufacturers set the MGFV on the low side to give customers a chance of positive equity. The MGFV is determined by your projected annual mileage and the term. So you are in control of this at the start.

So you have the possibility of using potential equity to go again and protection from negative equity.

Handing it back without doing your homework first could be a costly mistake. If it's really low, you like the car, and you want to keep it you can pay the final rental off and it'll be the cheapest used car you ever buy, from there you are free to sell if privately.

We previously had a new 2010 Fiesta Titanium TDCi on a 2yr PCP. Ford had set the final rental at below 7k. We decided to keep it, paid off the final rental in 2012, and then sold it in December last year for 8.5k to a private individual. Glad I didn't just 'hand it back'!
 

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All good points but i've never yet had a car in positive equity but then i've never bought from a premium brand, so i guess i've always had cars that have dived in value faster than Tom Daley.
 
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