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Part Exchange worth more than PCP deposit

Home Forums Car finance Part Exchange worth more than PCP deposit

This topic contains 3 replies, has 1 voice, and was last updated by Stuart Masson Stuart Masson 4 years, 4 months ago.

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  • #65373 Reply
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    Fiona Whitley

    The part exchange amount on my car is more than the 40% deposit I can put down on the new PCP. Will the dealer (BMW) be prepared to pay me the £5400 extra or will this rule out a PCP for me. Thanks

  • #65375 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Fiona. The dealership should be able to give you a cheque for the difference. This is perfectly normal.

    In fact, I’m surprised that they haven’t tried to persuade you to take a larger refund (ie – smaller deposit on the PCP) and finance a greater percentage of the new car, since they would make more money from it.

    • #65382 Reply
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      Fiona

      Thanks, Stuart. I will look at how changing the deposit will affect the monthly payment as I want my current car to finance as much of the new one as possible. I recognise that this simply pushes the figures from up front to the back end.

    • #65390 Reply
      Stuart Masson
      Stuart Masson
      Keymaster

      The maximum deposit you can put down up-front is determined by the balloon value at the end of the agreement, so you may find that it varies depending on how long the term is. Be clear with the dealer that you want to put down the maximum deposit possible, and be aware that they will probably want you to reduce that as mentioned above (for their benefit, not yours).

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