Advice please :)

[CandyCupcake]

I currently have 13 plate Candy White Scirocco GT 2.0TDI (177). I have it on the VW Solutions Finance agreement.

Now my worry is that by the time I swap it for a new one (2016), I won't get any part ex value for it (I will owe roughly £10k on it) due to the new model coming out causing a big price drop in my cars value.

What would you advise, just wait it out and bite the bullet when the time comes, or come out of the agreement early and just order a new model when I can (I want the new R as my upgrade).

I am quite naive when it comes to price deficits when new versions are released etc, so any advice would be brilliant! Oh and this is the first time I have had a car on Solutions, every other time I have bought the car outright.

Many thanks!

[Cuprabob]

Isn't VW Solutions a PCP product with a Guararanteed Future Value (GFV) where you have the option of either handing the car back or paying the balloon payment to keep the car. In which case you are kind of mitigated against the residuals taking a nosedive, which is unlikely. Only issue maybe there is not enough equity in the csr to fund thr frposit of the next car.

Coming out of the agreement early will probably be more expensive and remember a new car depreciates at it's greatest rate the younger it is. In which case there is a risk of negative equity.

Stick it out snd don't worry too much about the residuals, they won't be too affected by the new model.

[Rob]

As bob said coming out of the agreement early will hurt financially! I found this out when we bought a new golf cabriolet for the wife who then fell pregnant, had the car about 14 months before she finally agreed with me that she was struggling getting little un in and out. We put £6k down as a deposit and ended up just about getting what the settlement figure was as a part exchange, so we pretty much lost the deposit. These deals are designed for you to stick with the car until the end of the term. So, my advice is just keep it and as long as you haven't gone above your stated mileage you'll be guaranteed to clear the finance if you wish to trade in. If you look on the finance agreement this figure is the GMFV which stands for guaranteed minimum future value. You won't lose out

[CandyCupcake]

Thanks guys. You have put my mind to rest!

Yes you are right, I do have a GMFV which is around £10k. So I am hoping be in positive equity - if that is the right wording! But I am glad to know that I won't be at a loss and you both agree that I should ride the full term out.

Appreciate your advice!

Thank you

[Mark V]

The middle road which I would reccomend is to evaluate the situation every six to twelve months, You can get a settlement figure to terminate the agreement at any time from VWFS - and at some point one would hope that the value of the car will start to exceed that figure. This will depend largely on the quality of deal you got when you bought it of course. On my last Scirroco (which I bought at 11 months old and kept for 15 months) I exited the deal and got my enite £1900 deposit back - so its not compulsary to take these PCP deals to the full term. In fact I don't think I ever have!

[scirocco ben]

ive just upgraded mine this week it was only 18 months old '63 plate' and I was already in positive equity.. try and get on the £1500 deposit deal that vw are offering if you want to get in a new car that helps too.. I swapped the car for the 2016 updated model with a few nice extras for £3 a month more.