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Rant Room Clean ranting only - No Swearing!

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(Post Link) post #1 of 9 Old 1 Week Ago Thread Starter
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Car sales Conglomerates

So....in the hunt for new car. Excited and slightly apprehensive as its actually my wife's that is going to be replaced. We have a volvo 14plate v40 D2, 35k on the clock. Reasonably well looked after with a few scuffs(nothing that wont buff out) and only a couple of minor chips.

Now, wait till you read this! The finance settlement figure is £7441. I had a good trawl round autotrader and they're on sale from anything between 7.5k and 9k. Roughly same age, mileage etc. WBAC quoted us 6750 and I'm sure they would have knocked 300-400 off that, which is what I would expect.

Arnold Clark Hyundai in Linwood.....£5650!!!!!
£5650...£5650!?? Wtf?

"Few scuffs and that sir....and it's a diesel "
So! You've got them on the forecourt 2 shops up for 8grand!

"Aye but they're not selling"

That's two thousand pounds -ve equity. Bare in mind the contract still has 15months to run and the final optional payment is £4990!!
They've offered my 700quid more than the finance company think it'll be worth in 15months!!
[email protected]#$%ds

Reading between the lines, they don't want these cars! They're happy to have taken the 12k nearly 3years ago and now it can go to the finance company because they know they cant sell it again! Or the customer has to take a massive hit!
Beware folks...if you have a similar car be prepared to have to keep it until the end of its term. PCP didn't work out well at all for ours. Keep this in mind next time you walk into any major showroom. They'll still be trying to charge 8grand for a car they think is worth 5and a half.
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(Post Link) post #2 of 9 Old 1 Week Ago
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“they're on sale from anything between 7.5k and 9k. ”
They obviously don’t sell for that. However a trade in can be undervalued and a finance deal can be sold... They also have to provide a warranty and pay tax on top of what they pay for the car. It seems to work but if everybody wanted to call in their debts etc it would all come falling down.
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PCP is the new PPI.
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(Post Link) post #4 of 9 Old 1 Week Ago
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We recently replaced our car. At the main dealers all they wanted to do was sell us finance. The car was 3 years old and we were fortunate enough to be able to pay cash, "why do you want to pay cash?" says the salesman, if you finance it I can knock £2k off the screen price and throw in the next 2 services.

So we pay 50% deposit, drive home, phone the finance company and pay off the balance. No penalties and a massive sigh from the finance company when they find out we were incentivised to do it.
We don't change our car very often, 8-10 years, but it was obvious to us that they are finance companies that happen to have cars on show.
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It just seems to me that 3 things are happening

1: customer keeps car till end of term but this massively reduces the customers ability to change their car when the feel its time

2: Customer has to take a big hit if they're desperate to change their vehicle for personal reasons

3: Sellers wont budge from their offer, customer hands car back to the finance co at end of term who invariably send to auction. AC etc go to said auction and purchase car at auction prices and the whole revolving door starts again.

The only loser is the customer in all three scenarios.
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The new car is worth half what you pay for it, say £10k . list is £20k.
The three year old car is worth 40% of new price or £4K . That’s £8k
The PCP is paying off 60% of new price or £12k plus interest.
If you get £4K discount from £12k and interest, thats only £8k to pay. So the £4K is half price.
But if you expect the car to be worth say 15% less than the £20k after a year you’ll be disappointed.
I think.
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Quote:
Originally Posted by cue2 View Post
The new car is worth half what you pay for it, say £10k . list is £20k.
The three year old car is worth 40% of new price or £4K . That’s £8k
The PCP is paying off 60% of new price or £12k plus interest.
If you get £4K discount from £12k and interest, thats only £8k to pay. So the £4K is half price.
But if you expect the car to be worth say 15% less than the £20k after a year you’ll be disappointed.
I think.
I kinda get all that. But in our personal circumstance, the finance company valued the car at £4991 after the 4years we took out the pcp over. Now, admittedly the Volkswagen and diesel shenanigans happened after our purchase. Arnold Clark offered 5650 with 15months of the term left! That would suggest they think that in another 15months and another 12k on the clock, it'll be lucky to raise 4k.
So either the Volkswagen fiasco has played a huge part, they are intentionally undervalueing the car or Hyundai finance got it substantially wrong.
As I said, there a couple of scratches that I wouldn't be able to repair but all the remaining scuffs can and will be buffed out. That means that WBAC are offering a much better deal at 6750.....of which I imagine we would actually get about 6350. Its madness.
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I think you've answered your own point:

Quote:
Originally Posted by [email protected] View Post
... So! You've got them on the forecourt 2 shops up for 8grand!
"Aye but they're not selling".....
...Reading between the lines, they don't want these cars!
It's a business practice as old as the hills. You don't tell the customer "Bugger off, we don't want it;" you make them an offer they can refuse.
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Quote:
Originally Posted by Sterzo View Post
I think you've answered your own point:

Quote:
Originally Posted by [email protected] View Post
... So! You've got them on the forecourt 2 shops up for 8grand!
"Aye but they're not selling".....
...Reading between the lines, they don't want these cars!
It's a business practice as old as the hills. You don't tell the customer "Bugger off, we don't want it;" you make them an offer they can refuse.
Maybe so...I do know what they're up to. I just wanted a rant. Also....I was always under the impression car dealers tried hard to get rid of existing stock. Times have changed I guess
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