[Lofi]

As is the norm with sales people (they seem to be called sales executives now) they told me how high the residuals on the DS would be, suggesting they may be as high as 60% retained after 3 years. I've seen some Evoques seem to be nearer 70%. I've never had a LR before, what are peoples' experiences of residual rates, particular the trade ability when using a PCP?

 

[Triple7]

It will be interesting to see. My LR finance guy told me that back in October '14 all manufactuers GFV's were reduced quite markedly, as the industry was being required to give customers greater equity at the end of the term. Mercedes Benz for example, you were trapped in the financial product from the moment you drove away the car as the deposits were low and the GFv's very high, giving low monthly payments, but negative equity from the start.

LR thought this would happen again in January and it seems that again GFV's have once again be lowered.

I think these will be a very popular car for current LR owners alone. All these Freelander owners trading up and all those Evoque owners needing something bigger.

Anyone know how many LR are making for UK market each year.

 

[Lofi]

Essentially though we're talking about two different things - there's the guaranteed future value (GFV) for PCP and the actual residual value after depreciation. From the short chat with the sales person LR are generally quoting GFVs much lower than what they expect the actual value to be, the idea being you trade up with them by having equity. The amount of equity is the actual value. I'm wondering how this worked out for people in practice? My experience with other manufacturers with PCP is that they kept GFV too high to keep monthly payments low and you ended up in near negative equity, hence my last few purchases have been out-right. I'm just wondering whether LR have the residual balance right making PCP a more reasonable option (even if in pure total cost it remains high).

 

[KaikouraDiscoSport]

My RR Evoque TD4 prestige 2.2 Diesel with 30k miles is was traded in at 64% of its price after 3yrs & 3months. It is a 5drs with usual options so guess this is a fair (low mileage) guide. I do think you only get 60%+ trade in if you bought a model that just came out and is popular (think Mini Cooper, latest X5, new Passat etc). This is why I never buy cars who are about to be replaced by a new model...

 

[Triple7]

My RR Evoque TD4 prestige 2.2 Diesel with 30k miles is was traded in at 64% of its price after 3yrs & 3months. It is a 5drs with usual options so guess this is a fair (low mileage) guide. I do think you only get 60%+ trade in if you bought a model that just came out and is popular (think Mini Cooper, latest X5, new Passat etc). This is why I never buy cars who are about to be replaced by a new model...

Unless you get a huge discount at the beginning, it all works on the same in the end. For that reason a PCP is great to have on a car you have no clue where prices will end up, getting you that GFV for piece of mind.

 

[Triple7]

Essentially though we're talking about two different things - there's the guaranteed future value (GFV) for PCP and the actual residual value after depreciation. From the short chat with the sales person LR are generally quoting GFVs much lower than what they expect the actual value to be, the idea being you trade up with them by having equity. The amount of equity is the actual value. I'm wondering how this worked out for people in practice? My experience with other manufacturers with PCP is that they kept GFV too high to keep monthly payments low and you ended up in near negative equity, hence my last few purchases have been out-right. I'm just wondering whether LR have the residual balance right making PCP a more reasonable option (even if in pure total cost it remains high).

Corrected my post to replace 'residual value' with GFV, so talking the same. Will you lose your shirt on the DS? Don't think so.