Facelift End of plate deal vs lower GFV?

[Masslob]

So after much research and deliberation will be going down the PCP route for my next s3

Now ive been reading that end of plate months (like march 2018) is a good time to get deals from dealers as they will be desperate to get old plate sales over the line and thus more flexible, now i thought about taking advantage of this but then i thought, wont the fact that its last years plate affect your GFV or wont it?

Any advice would be appreciated

 

[Jassyo06]

No it won't mate had this topic of conversation last week with my mum's car, mileage and condition is what counts

 

[Masslob]

Also certain options it would seem, my bros neighbour works for BMW and said that if you pick options they know buyers look for this will also help with GFV (nav system, folding mirrors, branded sound system, heated seats and sensors)

 

[Jassyo06]

Also certain options it would seem, my bros neighbour works for BMW and said that if you pick options they know buyers look for this will also help with GFV (nav system, folding mirrors, branded sound system, heated seats and sensors)

It does with BMW cars not so much with Audi

 

[DrEskimo]

It might be worth being clear about the difference between valuation and GFV.

The GFV is a definite amount that is guaranteed at, and only at, the end of the contract and within the specified mileage. This changes every quarter or so, along with APR rate and often RRP of the cars. So in your example, the GFV will only change in March if it coincides with Audi altering the parameters of the PCP.

As Jassy says, BMW has a mechanism where options increase the GFV on any PCP deal. Audi don't though. An S3 with £0 of options has exactly the same GFV as an S3 with £20k worth of options.

Valuation on the other hand, is obviously completely dependent on age, mileage and to some extent options. So getting your S3 valued in January will be different to getting it valued in March. Some dealers may give you better valuations on cars with certain options if they know they can sell them better.

This is completely separate from the set GFV on a PCP though. The GFV is a prediction of the value in X months time. A valuation is what the market value of that car is at that specific time, dependent on the dealers appetite for the car, market forces, etc.

 

[Masslob]

By that rationale, lets say i wanted to buy my s3 at the end of the lease, so there is stuff i can do to lower its value to audi so i pay less at the end lol

 

[RGBARGEE]

By that rationale, lets say i wanted to buy my s3 at the end of the lease, so there is stuff i can do to lower its value to audi so i pay less at the end lol

They will lower its value but only so far. All that does is increases your repayments and interest payable!


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[DrEskimo]

By that rationale, lets say i wanted to buy my s3 at the end of the lease, so there is stuff i can do to lower its value to audi so i pay less at the end lol

You are locked in to paying the GFV. If the GFV is £20k, but through higher mileage or whatever, it's now only worth £18k trade, you can't buy it for £18k. You still owe £20k. In which case you would question spending £20k on a car only worth £18k and likely just hand it back, but then you a liable for it's condition and excess mileage charges.

Unless you mean ask to lower the GFV when negotiating the deal at the start..? I guess you could, but I don't understand why you would?
I mean if your goal is to own it outright, I don't really see why you would consider PCP in the first place...?

 

[KenL]

No it won't mate had this topic of conversation last week with my mum's car, mileage and condition is what counts

Surprised by that!

A 67 plate could be worth a few hundred less than an 18 plate in 3 years time.

 

[Jassyo06]

Surprised by that!

A 67 plate could be worth a few hundred less than an 18 plate in 3 years time.

Why would one month make a difference

 

[RGBARGEE]

Why would one month make a difference

A lot more that a few hundred!!


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[KenL]

Why would one month make a difference

Because price guides used by dealers show different rates for 16 plate, 66 plate etc. Even within the six month registration periods a January car can be worth more than a December car.

 

[Jassyo06]

Because price guides used by dealers show different rates for 16 plate, 66 plate etc. Even within the six month registration periods a January car can be worth more than a December car.

110% in disagreement

 

[Jassyo06]

A lot more that a few hundred!!


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Same reply......... bollards

 

[Jassyo06]

Because price guides used by dealers show different rates for 16 plate, 66 plate etc. Even within the six month registration periods a January car can be worth more than a December car.

MY17 ,MY18 .... ... Etc date of registration and Model Year is what counts not what month my son buys and sells them for a living

 

[KenL]

MY17 ,MY18 .... ... Etc date of registration and Model Year is what counts not what month my son buys and sells them for a living

Your message here is not very clear to me. You mention date of registration, could that not include a month or year?

 

[Matt Titanium]

Condition/spec/mileage being equal, I think what Ken is saying is that most people buying used would prefer to buy a 66 plate car over a 16, a Jan 2017 over a Dec 2016 registered car and a 17 plate over a 66 so the trade in and resale values would reflect this.
Is the PCP GFV figure above or below the trade in value at the end of the term? The manufacturers win either way.