- 1 February 2016 at 5:20 pm #87052
I am looking for some advice on my trade in value being less than the GMFV and where i stand with this problem?
- 1 February 2016 at 5:24 pm #87053
Hi Ian. Have a read of our article about .
If your car is worth less than the GMFV at the end of the agreement, you should be able to give it back to the finance company and it’s their problem (assuming you are within your mileage limit, the car has a full service history and it is in good condition).
- 3 February 2016 at 4:34 pm #87075
Thank you for your response.
My issue is that i took my car to the local dealers to test the water as i have 1 year left on my 3 year pcp deal and they told me that my trade in price was £6600 but my GMFV would be £7000 at the end of the 3 yrs. What is your advice on this situation?
- 3 February 2016 at 5:50 pm #87080
If you are looking to change the car now, you will obviously have to pay off the negative equity, so you will need to pay off this car before you can start worrying about what you want to buy next.
If you are happy to keep the car until the end of the agreement, and assuming that the car is under the allowed mileage, with a full service history and in good condition, you can give it back and any negative equity is the finance company’s problem.
Whether it’s worth the extra cash to change the car is up to you. We can’t advise a particular path to follow (FCA regulations), but you need to understand the full financial implications so you can make best decision for your situation.