Pcp help wanted (understanding)

[2into1]

(mods, please reassign this as appropriate, this was the best I could find).

I'm looking for a bit of understanding as to how pcp deals end, particularly in the pricing uncertainty expected due to Covid.

A good friend has a nice audi coming to the end of its 4 year pcp deal. She's loved it and would like to keep it (and has the resources to do do so).

Problem is, is that the balloon figure being quoted is higher than the market prices already out there, and potentially much higher than they may be in a couple of months. This is clearly not how things were meant to work, but diesel worries have obviously taken their toll on values.

There seems little point in paying the high balloon price when she could walk into an audi dealer and get its twin sister freshly valeted and with a years warranty for £500 less, or about £2k less if she buys non franchise.

Is she likely to be offered a last minute realistic offer to keep hold of it, or will she just have to hand it back, only for audi finance to take a huge hit when they are forced to auction it off?

Any thoughts and experiences appreciated.

 

[kurienp]

The balloon figure is something that would have been on the initial contract and not something being quoted now. She will not be offered a lower price.

The challenge is - at least with VW - there is no one you can speak to to discuss. It is all automated. There is a call center and you know how helpful they are anyways. I am not aware of anyone who had been offered a different price to what is in the contract.

No point in speaking to the dealer as they are now not involved. the contract is between Audi Financial services (AFS) and the customer.

The lady in this case has three options 1. Pay the balloon and keep 2. Return the car 3. Request a refinance if that is an option offered by AFS.

1. Pay the balloon - as I said earlier - simple process, that amount will be taken out of her account on the said day and then within 4 weeks she will receive a letter that all is settled etc. (this is the option I selected)
2. Return the car - she has to indicate this at least 4 weeks in advance. Valuators come and look at the car and most probably will find issue with things so that they can charge something on the condition of the car ... small scratches, dents, etc. etc. One item they usually catch people on is the mileage. This is a bit of a hassle and she will have to see if it is worth the £500 that she will have to pay (but she will get a years' warranty).
3. Refinance - not an option I guess the lady is interested in.

Hope this note helps.

as we say ... decisions ... decisions ... decisions ....

 

[larrylamb]

Is there an option 4?
Use the Audi as the deposit/part ex on another PCP??

 

[kurienp]

Is there an option 4?
Use the Audi as the deposit/part ex on another PCP??

Possibly, if you approach the dealers well in advance (at least a few months before the end of the PCP). But as I understand from the OP, the lady has the resources to keep the car and as a result my conclusion would be that she is not interested in another PCP (?)

 

[Elmo3]

Tell her to input the details into WBAC. The valuation will be horrible (not her problem). Speak to Audi Finance (VWFS) and negotiate the figure based on the current valuation. There is no way they’ll want that car back right now. She must be prepared to walk if they won’t play ball.

 

[chindit]

ask a salesman at the suppling dealership which auction they use then watch the auction website for it being entered.then bid on it.

 

[Elmo3]

VWFS use BCA, who own WBAC...

 

[2into1]

Is there an option 4?
Use the Audi as the deposit/part ex on another PCP??

She is a little tempted by another roll of the dice, but also quite fancies the idea of stopping work and reducing her outgoings accordingly. The Audi will need a cam belt etc soon but otherwise seems very solid, capable and safe.

It's interesting that she thought it was costing her £200 a month, until I pointed out that it had eaten her £10k deposit too, making it £400 a month.

 

[Jontymo]

If the finance company won't lower the price find out what happens to the car when it is picked up, either auctioned or goes into Audis used program. Decide if you want to buy it at a lower price and with a warranty if through Audi!

 

[larrylamb]

We wanted to purchase our leased Skoda Yeti a couple of years ago but they didn't give us the option or tell us where it was going to be auctioned. Strange decision as it would have saved them a lot of work and money.

 

[WelshGas]

We wanted to purchase our leased Skoda Yeti a couple of years ago but they didn't give us the option or tell us where it was going to be auctioned. Strange decision as it would have saved them a lot of work and money.

It could have been worth more than the final payment, but they would have been restricted to the agreed final payment and hence possibly a loss.

 

[Elmo3]

We wanted to purchase our leased Skoda Yeti a couple of years ago but they didn't give us the option or tell us where it was going to be auctioned. Strange decision as it would have saved them a lot of work and money.

The main difference now being that there are basically no buyers in the market.

 

[Azteccamper]

Just give it back and buy another at reduced price. PCP is a rip off - allegedly.

 

[pjm-84]

We wanted to purchase our leased Skoda Yeti a couple of years ago but they didn't give us the option or tell us where it was going to be auctioned. Strange decision as it would have saved them a lot of work and money.

I leased an VW Up for the company and was told that the company couldn't purchase the car at the end of the lease. A month before the end of the lease we went onto the website, was offered a final figure, and paid for the car. This was good because it had done 15000 miles over the allowance, was still wrapped and had a damaged front valance.

 

[SimonK]

One thing to consider:

Are VWFS in a position to instruct BCA to come out and inspect/collect the car? Are BCA inspectors still working?

If not, she might not be able to give the car back?!

 

[2into1]

One thing to consider:

Are VWFS in a position to instruct BCA to come out and inspect/collect the car? Are BCA inspectors still working?

If not, she might not be able to give the car back?!

I think you are right. They seem to be trying to extend current deals by a few months with the hope that once things reopen, it will be back to business as normal....where we’ll still face the dilemma in my OP, perhaps with an even greater price difference if used values do take a hit.

 

[WelshGas]

I think you are right. They seem to be trying to extend current deals by a few months with the hope that once things reopen, it will be back to business as normal....where we’ll still face the dilemma in my OP, perhaps with an even greater price difference if used values do take a hit.

Make them an offer closer to the time?

 

[larrylamb]

It could have been worth more than the final payment, but they would have been restricted to the agreed final payment and hence possibly a loss.

I leased an VW Up for the company and was told that the company couldn't purchase the car at the end of the lease. A month before the end of the lease we went onto the website, was offered a final figure, and paid for the car. This was good because it had done 15000 miles over the allowance, was still wrapped and had a damaged front valance.

I can't remember the finance company that was used but it was not VWFS and it was a personal lease so no final payment. I was told time after time I had no option to purchase the vehicle.
We now have a Seat Ateca lease and the finance is VWFS who will give you the option to buy.

 

[andyinluton]

Ist thing is to check if there is any damage at all and that the mileage is within the allowance. A couple of kerbed alloys and a few scrapes soon add up at Audi repair costs. Depending on the model/ agreement the mileage penalties can be huge - say 75p a mile times a few thousand miles soon adds up.
In penalty charges that need paying.

mid she doesn’t want to keep it, it is the finance companies problem as to how to pick it up, I understand most are offering a free extension to the pcp so the customer carries on insuring & taxing it.The VW finance web site has a clear uptodate FAQ section giving options at the moment.

 

[Barbara]

(mods, please reassign this as appropriate, this was the best I could find).

I'm looking for a bit of understanding as to how pcp deals end, particularly in the pricing uncertainty expected due to Covid.

A good friend has a nice audi coming to the end of its 4 year pcp deal. She's loved it and would like to keep it (and has the resources to do do so).

Problem is, is that the balloon figure being quoted is higher than the market prices already out there, and potentially much higher than they may be in a couple of months. This is clearly not how things were meant to work, but diesel worries have obviously taken their toll on values.

There seems little point in paying the high balloon price when she could walk into an audi dealer and get its twin sister freshly valeted and with a years warranty for £500 less, or about £2k less if she buys non franchise.

Is she likely to be offered a last minute realistic offer to keep hold of it, or will she just have to hand it back, only for audi finance to take a huge hit when they are forced to auction it off?

Any thoughts and experiences appreciated.

I think this topic was discussed on radio 4 today. The Money Program

BBC Radio 4 - Money Box, Wage support changes and debt help

What the coronavirus furlough scheme date change means for you.

www.bbc.co.uk

 

[2into1]

I think this topic was discussed on radio 4 today. The Money Program

BBC Radio 4 - Money Box, Wage support changes and debt help

What the coronavirus furlough scheme date change means for you.

www.bbc.co.uk

Thanks for this. It's for about 12 mins at the end if anyone else is interested.

 

[westfalia]

I think Audi make some real fine cars so i cannot understand
why you would want to cover up the fact that you have one,

Asking for a friend, yeah, yeah. Come on 2 into 1 we are all grown ups
here.

 

[2into1]

I think Audi make some real fine cars so i cannot understand
why you would want to cover up the fact that you have one,

Asking for a friend, yeah, yeah. Come on 2 into 1 we are all grown ups
here.

Funny but Nope! I stuck with my 2into1 logic and have not succumbed into buying a car to go alongside the Cali. 'She' however, is a new addition!

 

[westfalia]

A car salesmans dream - a lady buying a car.

Ok maybe not PC but if i was in the market for a new sewing machine
i would ask a woman first, no, scratch that, thats not PC either.
Im non binary by the way.

 

[OGII]

Tagging this opinion piece onto the end of a PCP thread...

Echos what a few have said on here recently

Chris Harris on... car finance

A new car is most people’s second largest purchase. But, asks Chris, is it really worth it?

www.topgear.com