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WelshGas

WelshGas

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Thanks - how does the trade-in value work? Don’t you just have to decide whether to pay the balloon and own it, or hand it back? Otherwise what do you have to trade?
If you can sell it for more than the balloon payment then you sell and pay the balloon payment and keep the difference, but I presume you would have to clear this with the Finance company if a private sale or use someone like WBAC who would pay on your behalf.
Personally I would be very careful/wary purchasing such a vehicle, but each to his own.
 
I

itsSteve

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Thanks - how does the trade-in value work? Don’t you just have to decide whether to pay the balloon and own it, or hand it back? Otherwise what do you have to trade?
In my case, the offer was that, at five years old VW, will take the vehicle back or sell it to me for a guaranteed sum. The clear assumption is that it will be worth more than that, and I will use the equity as a deposit on another vehicle. Now I'm buying a GC 600, but the basis is the same for any vehicle. It looks as though the same deals are available Calis as well. Have a look at this (scroll down to the bottom of the page)
This should take you to a relevant VW webpage.
This would, for example, require a deposit of £17k as a deposit, fifty-nine monthly payments of £370 with an optional final payment of £25k. Now, I reckon a five-year-old Beach will be worth more than that, but then I have absolutely no expertise on which to base that judgement! Hope this helps
 
Georgiegirl

Georgiegirl

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We have bought 2 calis on a pcp. Both times we sold the vehicle privately before the end of the agreement, settled the finance and pocketed the balance - which was more than the deposit we had paid at the start of the purchase. You can do this at any time during the agreement.
 
66tim99

66tim99

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In a circumstance such as that you would simply sell it to We Buy Any Car or other such company who would settle the finance and pay you the difference. This gives you the funds to start a new PCP or buy something different.
We have bought 2 calis on a pcp. Both times we sold the vehicle privately before the end of the agreement, settled the finance and pocketed the balance - which was more than the deposit we had paid at the start of the purchase. You can do this at any time during the agreement.
Thanks - how did you choose what deposit to pay? Always the minimum?
 
Georgiegirl

Georgiegirl

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Thanks - how did you choose what deposit to pay? Always the minimum?
Depends what you can afford monthly. We never put more than about £6-8k into them but that was a few years ago and appreciate the list price has increased quite a bit since then!
 
66tim99

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If you can sell it for more than the balloon payment then you sell and pay the balloon payment and keep the difference, but I presume you would have to clear this with the Finance company if a private sale or use someone like WBAC who would pay on your behalf.
Personally I would be very careful/wary purchasing such a vehicle, but each to his own.
Thanks
You’d be wary of purchasing a vehicle that had been financed, but the finance was now cleared?
 
Algor

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If you can sell it for more than the balloon payment then you sell and pay the balloon payment and keep the difference, but I presume you would have to clear this with the Finance company if a private sale or use someone like WBAC who would pay on your behalf.
Personally I would be very careful/wary purchasing such a vehicle, but each to his own.
Why would you need to clear it with the finance company? It is no different than part exchanging a car with outstanding finance, it happens all day every day and is nothing out of the normal. As for being wary of buying a vehicle that has ever being subject to finance then you would be seriously limiting your choices as the vast majority of new vehicles are sold with some aspect of finance.
 
WelshGas

WelshGas

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Why would you need to clear it with the finance company? It is no different than part exchanging a car with outstanding finance, it happens all day every day and is nothing out of the normal. As for being wary of buying a vehicle that has ever being subject to finance then you would be seriously limiting your choices as the vast majority of new vehicles are sold with some aspect of finance.
You do as you wish. Any vehicle I have bought in the past the seller has had clear title to that vehicle.
I will not buy a vehicle from a private seller who does not have clear title. If the vehicle has a PCP contract then the seller does not have clear title until the finance company has been paid. If they are not prepared to pay to get clear title before selling and depend on me, as the buyer to supply those funds, then I would want a discount if I am taking the risk. So no. Clear title or no sale to me, I’m afraid.
 
WelshGas

WelshGas

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Thanks
You’d be wary of purchasing a vehicle that had been financed, but the finance was now cleared?
Not a problem if the seller has obtained clear title to ownership by paying off the finance before offering the vehicle for sale.
But offering a vehicle for sale and planning on using my money to clear the Finance company interest in the said vehicle at the time of sale, not a risk I will take. You, and others can , but not me.
 
Elmo3

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You do as you wish. Any vehicle I have bought in the past the seller has had clear title to that vehicle.
I will not buy a vehicle from a private seller who does not have clear title. If the vehicle has a PCP contract then the seller does not have clear title until the finance company has been paid. If they are not prepared to pay to get clear title before selling and depend on me, as the buyer to supply those funds, then I would want a discount if I am taking the risk. So no. Clear title or no sale to me, I’m afraid.

Very much this. The vendor could take your money and not clear the finance. One solution is to pay the finance company directly and any balance to the vendor but there’s still a risk and it’s a load of hassle.
 
WelshGas

WelshGas

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Why would you need to clear it with the finance company? It is no different than part exchanging a car with outstanding finance, it happens all day every day and is nothing out of the normal. As for being wary of buying a vehicle that has ever being subject to finance then you would be seriously limiting your choices as the vast majority of new vehicles are sold with some aspect of finance.
Buying a vehicle from a reputable company, a vehicle bought by that company or taken in part exchange with outstanding finance, is much less of a risk than buying from a private seller, a vehicle with outstanding finance. The company will have cleared the finance and have clear title to the vehicle at point of sale.
Its not my job to provide the funds and check that the finance is paid off as a buyer, its the sellers responsibility.
 
GrahamB

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Buying a vehicle from a reputable company, a vehicle bought by that company or taken in part exchange with outstanding finance, is much less of a risk than buying from a private seller, a vehicle with outstanding finance. The company will have cleared the finance and have clear title to the vehicle at point of sale.
Its not my job to provide the funds and check that the finance is paid off as a buyer, its the sellers responsibility.
Why would you need to clear it with the finance company? It is no different than part exchanging a car with outstanding finance, it happens all day every day and is nothing out of the normal. As for being wary of buying a vehicle that has ever being subject to finance then you would be seriously limiting your choices as the vast majority of new vehicles are sold with some aspect of finance.
As a buyer you can speak directly to the finance company at the time of purchase, pay the outstanding finance by direct transfer and the balance of the sale price to the vendor. You leave with the vehicle, a bill of sale/receipt and the V5 - so it definitely belongs to you - and you know title is clear, because you have cleared it. I wouldn’t do this in a backstreet in South East London, or in an isolated location obviously, but if you are at the home of the vendor and their name and address corresponds to the V5, is it really any more risky than a dealer transaction?
 
GrahamB

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Yes that’s very likely the case -
Might it be that VW finance apply a standard GFV calculation?
If the unusually high values seen recently continue, you might find your final balloon payment is significantly below the true value?
but nothing to worry about! Because it means you have more equity in the vehicle, which they will take into account if you trade in - the GFV is only relevant if you hand it back.
Thanks - how does the trade-in value work? Don’t you just have to decide whether to pay the balloon and own it, or hand it back? Otherwise what do you have to trade?
The trade in value is the difference between what the dealer will give you for it (or any other buyer for that matter) and your outstanding finance. Don’t worry about excess mileage either - that is also irrelevant unless handing back.
 
WelshGas

WelshGas

Retired after 42 yrs and enjoying Life.
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T5 SE 180 4Motion
As a buyer you can speak directly to the finance company at the time of purchase, pay the outstanding finance by direct transfer and the balance of the sale price to the vendor. You leave with the vehicle, a bill of sale/receipt and the V5 - so it definitely belongs to you - and you know title is clear, because you have cleared it. I wouldn’t do this in a backstreet in South East London, or in an isolated location obviously, but if you are at the home of the vendor and their name and address corresponds to the V5, is it really any more risky than a dealer transaction?
 

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