[TheLiverBird]

To cut a long story short I'm probably not going to be able to change my car how I wanted (to a 440i or S5) when my current PCP deal expires in 12 months time: I'm probably not going to have the same level of job security for the next few years (state school where I work is to become an academy) so don't want to commit to a new £450+ PCP.

A few months ago I tested the water as to the value of my current car as a trade in - worryingly it was only £24-25k after just 2 years - with a list price of £52k. This £24-25k is exactly where the GFV was set for after 3 years (and when I hand it back).

So, my question is, as I assume in another 12 months the car will probably be worth somewhere in the region of £20k - Is the dealer / BMWFS in a position to sell the car cheaper than the GFV (£24.6k) as to avoid the hassle of having to prep / store / guarantee / advertise find a new buyer etc etc because there's no way I'm paying £24.6k for a car that's worth less than that!

Has anyone else been in this situation and successfully negotiated a purchase price of less than the GFV?

[RichardM]

I've recently paid the full balloon/GFV for a car. I really can't see them accepting a lower offer or we would all be doing that. At the end of the day they would rather see you in a new car.

[NISFAN]

Very much doubt it......they automatically withdraw the final payment from your account at end of term. Why would they accept a lower amount?

[Soul_Glo]

Say the GMFV is £24.6 but the car is worth £20k in reality.

The idea is to use / negotiate the equity between the two price points to enter a fresh PCP. You could even negotiate a lower APR. Some people re-enter PCP on the same vehicle.

PCP can be an expensive way of buying a car and is not really designed for that.

If you handed the car back in at the end then BMWFS take the hit. Your money is tied up basically. So you could lose out too in a way if you return the car.

The idea is to lock you into their eco-system.

[GEP77]

Originally Posted by Broken_Gearbox

Say the GMFV is £24.6 but the car is worth £20k in reality.

The idea is to use / negotiate the equity between the two price points to enter a fresh PCP. You could even negotiate a lower APR. Some people re-enter PCP on the same vehicle.

PCP can be an expensive way of buying a car and is not really designed for that.

If you handed the car back in at the end then BMWFS take the hit. Your money is tied up basically. So you could lose out too in a way if you return the car.

The idea is to lock you into their eco-system.

I think it is going to depend on your relationship with the dealer. If it is outstanding then I suspect the process will involve handing the car back and them giving you a very clear indication of where it'll end up.

There is of course a significant risk here, whereby someone else really likes your car and offers more than what your GFV was.

A few things to consider overall. List price is not the same as the value when new. The GFV is not the value of the car when the PCP finishes, it is your final payment. However assuming you've held your end of the bargain (mileage within contract, condition of the car commensurate with that) then you can hand the car back to BMWFS (not the dealer) with nothing further to pay.

If you really want to keep the car then you really do have to pay the final payment.

[MickyD'bo]

I'm my experience PCP works with very small deposits and a view that you'll hand the car back. Even with deposits of 10-15% in the past, it has always been in a negative equity position full or 3/4 term point.

[Nobby Clark]

Originally Posted by MackyDobbo_Dobster_D'BO

I'm my experience PCP works with very small deposits and a view that you'll hand the car back. Even with deposits of 10-15% in the past, it has always been in a negative equity position full or 3/4 term point.

Here we go yet again. The GFV is fixed. The balance is made up of monthlies and and a deposit. It doesn't matter if you pay a small deposit or a large one (other than increase or reduce the monthlies accordingly) the same balance has to be paid.
If the finance guys have their sums right, the car will always be worth less than you owe until near enough the final month so you pay all the interest and if you default, they can recover costs.

[MickyD'bo]

Originally Posted by Nobby Clark

Here we go yet again. The GFV is fixed. The balance is made up of monthlies and and a deposit. It doesn't matter if you pay a small deposit or a large one (other than increase or reduce the monthlies accordingly) the same balance has to be paid.
If the finance guys have their sums right, the car will always be worth less than you owe until near enough the final month so you pay all the interest and if you default, they can recover costs.

Jesus. Cool your jets man. 'Here we go again'. I'm very clear about PCP. I was just trying to help the OP. Pick your toys back up and put them back in your cot.

[teaston]

With mine I'm going to ask Tony to VT it after 3 years, and ask to buy it at whatever value they would then shift it on for (i.e. Market value). I can't see any reason why this won't be possible!?

[MickyD'bo]

I've always VT'd mine. Middle or end.

[Goneinsixtyseconds]

Originally Posted by teaston

With mine I'm going to ask Tony to VT it after 3 years, and ask to buy it at whatever value they would then shift it on for (i.e. Market value). I can't see any reason why this won't be possible!?

That might not be possible, you won't be able to VT it with Tony. Cars that are VT'd don't go back to the dealer, it's nothing to do with them. You VT with BMWFS who just usually send the car to BCA for auction.

You might be able to do a deal directly with them, but not heard of anyone who has tried.

If I was buying cash I might consider buying at auction and save a few thousand. VW Audi finance have their own sales days, presumably BMW do too. Would be nice to save a few thousand and buy at trade price for a change.

[teaston]

Originally Posted by Alex440

That might not be possible. Cars that are VT'd don't go back to the dealer, it's nothing to do with them. You VT with BMWFS who just usually send the car to BCA for auction.

You might be able to do a deal directly with them, but not heard of anyone who has tried.

If I was buying cash I might consider buying at auction and save a few thousand. VW Audi finance have their own sales days, presumably BMW do too. Would be nice to save a few thousand and buy at trade price for a change.

I hope that's not the case, after all why go through all the effort of picking up the car and processing it etc. when they could just sell it to me at the same price with no effort?

[MickyD'bo]

Originally Posted by Alex440

That might not be possible, you won't be able to VT it with Tony. Cars that are VT'd don't go back to the dealer, it's nothing to do with them. You VT with BMWFS who just usually send the car to BCA for auction.

You might be able to do a deal directly with them, but not heard of anyone who has tried.

If I was buying cash I might consider buying at auction and save a few thousand. VW Audi finance have their own sales days, presumably BMW do too. Would be nice to save a few thousand and buy at trade price for a change.

Agreed. All of mine have gone straight to auction.

[Mattt1]

Aren't some of the auctions closed doors for BMW Dealers only?

[Chr15b]

Originally Posted by teaston

I hope that's not the case, after all why go through all the effort of picking up the car and processing it etc. when they could just sell it to me at the same price with no effort?

Because it's not good business for them to have the end buyers know they can save a few quid doing this.

Why would anyone buy retail and generate profit if this was possible. So they don't make easy ways of avoiding the differences.

[teaston]

Originally Posted by Chr15b

Because it's not good business for them to have the end buyers know they can save a few quid doing this.

Why would anyone buy retail and generate profit if this was possible. So they don't make easy ways of avoiding the differences.

Oh well, we'll see. It 2 years away anyway, I might really want a G20 by then.

[MarkG_M5Comp]

When I VT'd the dealer played no part at all - after the sale you have no agreement with them.

The dealer can of course but the car from you and pay ff the finance - unlikely in your case teaston as to sell it as approved used they need sub 50k miles.

Mine went to the auctions in Coventry - open auction. Again, BMWFS may decide to send them to a closed BMW Group auction but only if they can be sold as approved used (sub 50k).

[teaston]

Originally Posted by MarkG_M50d

When I VT'd the dealer played no part at all - after the sale you have no agreement with them.

The dealer can of course but the car from you and pay ff the finance - unlikely in your case teaston as to sell it as approved used they need sub 50k miles.

Mine went to the auctions in Coventry - open auction. Again, BMWFS may decide to send them to a closed BMW Group auction but only if they can be sold as approved used (sub 50k).

Mine will be close to 100k!

[Rich9600]

I think trade ins really depends on the traded in car, the dealer, your new car buy and the time of year etc.

I traded in a 3yr PCP 330d EU5 at 2.5 years for a 340i and got £6k more than the GFV. However, I got £3k less discount than c2c were offering. At the time.

Trade in was also £3k over the odds... Kind of balances out...

Spec trade in queries are very different to real deals. So, don't pin your hopes on the value now. They may have quoted a buy back price, all margin and risk on one car.

[moff]

In reality the dealer has nothing to do with the car now. Also your list price of £52k is slightly irrelevant as no-one pays list / RRP. Having said that, I think BMW are being a little naughty with their residual values / balloons on their cars - I don't know ANYONE who has paid a small or 'normal' deposit and has had any equity in their deal.

I'm in a similar position to you with the value of my 640 being horrendous compared to the balloon. I've investigated the options, and for you I think they are:

1. PX and likely get a decent price if you buy another car. You can also offset some of the new car discount against your negative equity.

2. Use WeBuyAnyCar to get rid and then pay the difference to clear the finance - ask for a settlement figure from BMW FS, as it's early you will get an interest rebate.

3. Private sell - similar to the above

4. Wait until the end of the agreement and then buy the car. I WOULD speak to BMW FS and offer a lower price than the balloon if the car value is lower. They will consider this especially as it will cost them to remarket the car and push back into the dealer network, or send to BCA where they will get 10% below the market value.

Since only 7% of PCP customers buy cars at the end of the contract there aren't many stories of people doing the above, but I am sure that BMW FS will consider a decent offer for the car. MB FS did with me for my previous C63.

[Mattt1]

Equity situation at the end of the PCP is unrelated to size of deposit.

Deposit ONLY adjusts monthly payments (and VT point).

[moff]

Originally Posted by Mattt1

Equity situation at the end of the PCP is unrelated to size of deposit.

Deposit ONLY adjusts monthly payments (and VT point).

You can give more deposit and 'maintain' the monthlies, if you want to though in a bid to give more equity at the end.