Quote:
Originally Posted by Alex440
It still doesn't make sense to me to buy a car that is worth less than you're being asked to pay. I can't imagine that being a common occurrence.
You could just buy a second hand car of the same age and same or similar spec and you're better off straight away. Both cars will be worth the same in the extra two years, but you'll have paid less to start with.
You may well have a personal attachment to your car, or you might think it's worth keeeping a car you know the history of. But financially it makes zero sense, which is why almost no one would do it. Here you go sir, I have a car for you that's worth £12k, it's all yours if you want it, but you need to give me £15k!
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In theory yes. In reality, finding a car of the same spec, the time involved, dealing with an unknown and it's not worth it.
You also need to keep in mind, most people are judging negative equity against a dealer trade in price and not an actual private sale. and they are doing this well before the PCP end date which makes a huge difference.
My car, for example, at 2 years old was valued at £20k trade in according to BNW. On WBAC, which usually gives the lowest value, it's over £25k.
My reckoning is the GFV will be very close to a private sale price at the end of the day.