Potential PCP price (considering leaving it early)

[mattwadey]

So, I have a 61 plate(feb 2012) Dsport Plus (red and black). More or less perfect nick with slightly scuffed alloys.

I asked citroen if I could get out on my PCP deal to upgrade to something bigger and as I'm just passed the 50% payment mark on my term this is allowed more or less for free. My PCP period ends February 2015 and I'm paying £270 a month.

The question is, judging by current market values of DS3's they all seem to be considerably higher than my GFV after 3 years. The gfv on my car is 7500 but most sites are giving me valuations for 3 year old Dsport plus' with 24000 miles of just over 10k£. Am I missing a trick if I give it back now, could I potentially end up in quite high credit on the car if I wait until next february just by holding on to the car?

I guess the alternative is sell it now to cover outstanding finance etc however there doesn't seem much point in that, I cant see how I'd get more than 11k absolute max for it right now...

[DigitalCal]

Interesting question, I've wondered this myself. If anyone's got any ideas do shout out

[Bigfeet]

Are you sure about reaching the 50% mark on a PCP already, normally that doesn't happen until about 6 months to go if I'm honest.

What you need to ask yourself is do you still want to continue paying £270 until Feb 2015 in order to make this upgrade, in all honesty you will probably only gain around £500-800 draw out of the car once you hit the end, but you would have paid another £3240 against it to start with.

Your best option would be to speak with your dealer who can offer a PX option right now as well as confirming your status to terminate. That way you can see the numbers in actions and decide which route is best.

[CliveP]

Simplistically you have an outstanding balance on the agreement. If you estimated your annual mileage correctly then the car should be worth at least the outstanding finance, a lot more if you put down the maximum deposit. It can be worth less thwn the outstandung balance early in the contract if someone only puts down a small deposit. The best way to look at it is to separate when you want to change it from how long your contract is. For example, phone Citroën finance and ask what the settlement figure is. Then go and ask a dealer what they'll give you for it as a trade. You 'have'the difference... which you can use to start all over again. I paid my Elect 3 off after having the car a couple of months, all of its value was then 'mine'. I've just done the same with my Merc.... either way you can change your car whenever you want to... the more frequent the more it costs you!
Regards,
Clive.

[mattwadey]

Yes, It does seme I also need to find out the settlement figure. I think citroen underestimated the residuals on these cars with the earlier PCP deals (with it being a new model) and so yes I will hit my 50% next month (minus 45 quid I'd have to pay to get it there). Havign said that BMW said chances are theyd offer me 10-10.5k part ex however I reckon my settlement figure may be 500-1k shy of this.

My comment about the residuals is interesting though as judging by current trade in prices/private selling prices for these cars, they seem to have held their value better than expected, my GFV is 7500ish I think so I could end up with quite a bit of equity if I hang on to it. (the argument of yes but I'd have to pay £270 a month until then doesn't really fly as whatever I do I'm going to be paying a monthly figure be it on a new car or this one).

[DS3WPR]

Very interesting discussion ....I am on the exact same thought pattern and I am so happy I read this as now I understand another consideration for not giving the car back early and moving to another lease deal with Audi. My GFV is £7500 ....and my current mileage is 1500 miles below my 10K miles per annum. So considering what people have mentioned above maybe I should hang on till the end. BUT ....what would happen then ? I would obviously have to pay the outstanding £7500 ....but cant do that until I sell the car? and wont people be put off buying a car with outstanding finance on it? Or am I missing something ? Would I even be allowed to sell it as don't Citroen kinda own it?

[Bigfeet]

You will need permission from the finance company to sell the car. Also you should really settle the finance before trying to sell it privately as only a fool buys a car on the promise of the seller paying off the finance afterwards

[mattwadey]

Youre better off just ringing the citroen finance department and asking what the settlement figure is. My actual settlement figure was a few quid less than we buy any car would give me for it. I'm trying to part exchange it instead though as that would be easier however the quotes for part exchange I've had are lower than what we buy any car are offering (that surely cant be normal)

[DS3WPR]

Do not use "We buy any car" lol ....RIP OFF!! thiers quotes are a joke

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[mattwadey]

Yeah, that's what I can't understand. Garage offered me 9.6k part ex on mine but we buy any car was 9.9k......work that one out. Might try to sell privately instead then, anyone interest?

[DS3WPR]

So your being offered £9.9k now .....and your GFV is £7.5 .....when does your lease finish?

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[mattwadey]

So your being offered £9.9k now .....and your GFV is £7.5 .....when does your lease finish?

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My settlement fee is 9500ish

[DS3WPR]

So you could settle now and make +£400 profit ....

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[mattwadey]

So you could settle now and make +£400 profit ....

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yeah but obviously id expect to get more part ex so could mayb end with 1k+ profit

[Rickzayne]

Get a bank loan to pay off Citroen then sell privately if you can be bothered.