Best dealer contributions you've come across

[Richard Hurst]

I was just wondering what the best dealer contributions everyone on here managed to get. I really want to part ex my 16 month old Mercedes car for an Ocean but as I'm not that long onto a 4 year deal my negative equity is around £7K. I don't mind putting a large deposit down and doing a PCP deal but I can't afford to transfer the whole £7K into the deal. Now I'm not expecting miracles but it would be nice to get an idea from people who have already done deals as to what I could realistically aim for

 

[Brian’s Dad]

Hi,

Ive just ordered an Ocean - currently got a BMW on PCP which i'm going to sell privately to limit loss in negative equity.

If you're negotiating PCP the deal is pretty standard £1K dealer contribution, 2 free services. The part you can negotiate is the list price discount. Standard discount is 5%, 7% should be achievable, I've achieved better than this and some people quote over 10% but that might include the £1k dealer contribution.

In my eyes the deposit amount influences the monthly repayment and slightly impacts the overall interest. A thing to bare in mind is if you hand over all your savings for the deposit will you have anything in 3-4 years to settle the circa £25k balloon. (it's well worth experimenting with the VW finance calculator).

There doesn't seem to be any interest from VW to settle negative equity on an existing PCP car. For this reason I focused on getting the best price on the Ocean.

 

[Richard Hurst]

Yes it’s the negative equity that is killing me currently and I haven’t got the patience to wait another year or so to see where I stand then.

 

[Brian’s Dad]

Use your deposit to pay off the negative equity... then suck up larger monthly repayments?

 

[Richard Hurst]

Use your deposit to pay off the negative equity... then suck up larger monthly repayments?

That’s not a bad idea I suppose. I currently pay £558 a month on the Mercedes

 

[Volkywagen]

That’s not a bad idea I suppose. I currently pay £558 a month on the Mercedes

That’s some amount for a car each month

 

[Richard Hurst]

That’s some amount for a car each month

I won’t tell you what the last one was costing me then

 

[Elmo3]

You’re going to have to put your hand in your pocket and settle the debt on the Merc. You can’t roll the debt forward (funders know typical discount levels).

At least if you start again on a Cali you are in one of the lowest depreciating vehicles around. Probably best to structure a fully amortised facility, even if over a longer period so you don’t reach a crunch point. The problem comes if you want to chop it relatively quickly as you will always get stung on the retail to trade price spread, whatever the vehicle.