Quote:
Originally Posted by supersebbo
The shocking thing is, my 'final payment' or 'GMFV' as they used to call it at 48 months is £30,100. The current market value is £30,700 and we're only half way through the agreement. If the trend continues I suspect the market value will fall to around £22K after the full 4 years - which in itself is pretty eye-watering for a £65k SUV. But also means I will definitely be handing it back which will incure BMW Finance a loss of around £8k.
Good for me in the long-run I guess, but clearly not what BMW expected when I bought it.
Perhaps there is some sort of corrective swing happening due to the very high prices of pre-owned vehicles during Covid, but it's hard to see how it could hold it's current value for another 24 months.
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On my M Sport Pro I took out a 3yr PCP at 2.9% APR in March 2022 and paid the October 2022 price of £62,730. The GMFV is £33,279.
I have been keeping a regular eye on the market values using free valuations from hpi.co.uk. Valuations are one thing but the vehicle is only worth what someone is prepared to pay for it and at the moment there seems to be a reluctance from dealers to pay top $ for used stock.
Given your current situation it does look as though you will need to keep the vehicle until the end of the term and depending on whether your next vehicle is through your dealer you may or may not have to hand it back as they may do something to get hold of the vehicle if they can still make a profit margin on it and keep/gain a customer and save you the checks on a hand back.
Interestingly the future valuations for 2025/6/7/8 went up this month but the current value went down by £1,600.
I put a big deposit down and only pay £250 per month but my equity has almost been eroded at the current valuations. I still expect to buy my car next year as I plan to keep it another 1-2 years maybe longer depending on when I decide there is something suitable to replace it. Also it won't cost me £600 a year to tax it from March 2026 after the changes due in April 2025.
I guess any of us that have a PCP and are thinking of buying outright need to keep an eye on values near to the end of our agreements and may need to make a financial decision to work out whether it is viable to pay more than the trade-in value. Technically you do that every time you buy a used car except in this case you are buying from yourself if that makes sense.
In your case you are not interested in purchasing the car as you have a company car scheme that unfortunately you cannot reasonably take advantage of at the moment. At least you are happy with your iX3 and would be driving one either way.