Mercedes value is almost equal to GMFV with 2 years to go on PCP

[Mike]

Hi. I’m half way through a 4 year PCP agreement with Mercedes-Benz Finance that guarantees the future minimum value of £12,125. My circumstances have changed and now I need a bigger car (currently have a C-class coupe). I was thinking of getting a Nissan X-Trail so I went to a local dealership and asked for a valuation of my car. It surprised me Nissan as well as Audi valued the car at £13,000.

Is this the actual car’s value that relates to the GMFV? If so, did the finance company get their numbers wrong or is the actual car’s value different than what I was told at the dealerships?

The same model of my car I found on Auto Trader starts at around £20,000.

Can anyone please explain where my logic is going wrong?

[Mike]

Forgot to add the car’s value was 27500 when I signed the PCP.

[Stuart Masson]

Hi Mike. Have a read of our article about new car depreciation.

There will be several factors at play. Firstly, your car is now the “old model”, and its value dropped a chunk when Mercedes-Benz launched the new C-Class coupé. Secondly, The Nissan and Audi dealers will almost certainly shunt your car off to auction, and won’t be trying to sell it themselves. So all they are going to pay is what they expect to sell it for at auction. Thirdly, they may be prepared to offer more if you are able to negotiate it – they may be lowballing you in the hope you accept it. Fourthly, asking prices on Auto Trader do not reflect the actual selling prices, and do not tell you what the seller paid for the car.

[Mike]

Thanks Stuart. I have had a read. The “best” option for me as far as I am concerned would be the Voluntary Termination once I reach the 50% of the total payable which needs at least another 12 months. This was my first PCP and think I haven’t fully thought that “deal” through before I signed the agreement. Thanks for your time.

[Author]

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