What happens to the car at the end of a PCP lease?

16
Posted 25th Nov
So there appears to be quite a few people that know about car leases on HUKD and I can't find an answer to this on the internet.

So, at the end of a PCP or if a Voluntary Termination is triggered the lease company sends round some guys to take the car away. Often it is BCA, British Car Auctions.

Joining the dots, it is reasonable to assume that your car is then taken off and put into an auction, bought by a dealer and re-sold.

My question is, after the car has been taken, is it possible to locate where it is being sold at auction and go along and bid for it yourself?

Reason I'm asking. I've just VT'd my BMW because it is in massive negative equity and will still be at the end of the PCP in 11 months time, so it makes sense to cut it loose. But, I'd actually like to keep the car by buying it at auction where the price will be lower than the the balloon payment or the current settlement figure.

Just wondering if anyone has ever done this? If so, how did you find out where the car was going to be for sale?
Thanks in advance.
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Yes, had two lease cars and when you sign the paperwork for the car to go you will know where it’s going. One went to BCA and the other to a car supermarket.

Interestingly the one that went to the car supermarket sold for £2k higher than what the lease company offered to me. However this was a private lease not a PCP from a main dealer
For pcp most of them are traded in for newer cars at the car dealerships so become theirs in most cases as they pay off the outstanding finance,then try and sell it at a ridiculous amount,i always go online a few weeks later to see how much my old car is going for.
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Basically you either buy the car or hand it back and they sell it.
ChrisGardner25/11/2019 23:47

Yes, had two lease cars and when you sign the paperwork for the car to go …Yes, had two lease cars and when you sign the paperwork for the car to go you will know where it’s going. One went to BCA and the other to a car supermarket.Interestingly the one that went to the car supermarket sold for £2k higher than what the lease company offered to me. However this was a private lease not a PCP from a main dealer


Thanks for that answer. Mine is definitely going to BCA, but it is interesting to know that some go directly back to the trade rather than via the auction. Maybe depends on mileage and condition. So, what I really need is someone who is familier with the workings of BCA to find out if it is possible to know in advance which sale my car will appear in.
You can see the cars coming up at the auctions - need to register though.

bca, mannheim have online search tools.

british-car-auctions.co.uk/
Edited by: "mas99" 26th Nov
mas9926/11/2019 08:24

You can see the cars coming up at the auctions - need to register …You can see the cars coming up at the auctions - need to register though.bca, mannheim have online search tools.https://www.british-car-auctions.co.uk/


Brilliant thanks, don't know why i couldn't find that page.

So, has anyone actually done this and bought back a car that they gave had VTed?
Negative equity doesn’t matter at the end of a pcp as you can hand it back and walk away without paying anything. I don’t understand why you wouldn’t wait 11 months instead of paying back an early fee now?
Edited by: "Pauladin91" 26th Nov
Pauladin9126/11/2019 09:24

Negative equity doesn’t matter at the end of a pcp as you can hand it back …Negative equity doesn’t matter at the end of a pcp as you can hand it back and walk away without paying anything. I don’t understand why you wouldn’t wait 11 months instead of paying back an early fee now?


Because the the balloon is 11500 and the car value at the end of the pcp will be about 9500. There are no early fees on a VT.
You might find it cheaper to use an auction buyer.
Fees at bca for private individuals are quite high, if you can see where it is coming up it might be that the buying fee from a buyer is less than your bca charges would be.

Be aware of all the charges at bca - storage/document fees/delivery etc.

I suspect that the run up to xmas will be a good time to buy though. glut of used cars coming through from people getting a new car for xmas/new year and lots of people with other stuff to think about and spend on at this time of year.
mas9926/11/2019 10:08

You might find it cheaper to use an auction buyer.Fees at bca for private …You might find it cheaper to use an auction buyer.Fees at bca for private individuals are quite high, if you can see where it is coming up it might be that the buying fee from a buyer is less than your bca charges would be. Be aware of all the charges at bca - storage/document fees/delivery etc.I suspect that the run up to xmas will be a good time to buy though. glut of used cars coming through from people getting a new car for xmas/new year and lots of people with other stuff to think about and spend on at this time of year.


Thats really useful. Thanks.
What is an Auction Buyer?
airbus33026/11/2019 10:17

Thats really useful. Thanks.What is an Auction Buyer?


There are people who spend all their time at auctions buying on behalf of other traders and individuals. They are called auction buyers. If you google car auction buyers you'll find various sites.

I've used a couple with mixed results but that has been looking to buy quite rare/unusual cars with very specific specification requirements. Your requirement seems pretty straightforward - you just need them to act as the bidder for you.
mas9926/11/2019 10:49

There are people who spend all their time at auctions buying on behalf of …There are people who spend all their time at auctions buying on behalf of other traders and individuals. They are called auction buyers. If you google car auction buyers you'll find various sites. I've used a couple with mixed results but that has been looking to buy quite rare/unusual cars with very specific specification requirements. Your requirement seems pretty straightforward - you just need them to act as the bidder for you.


Thanks again, have educated myself on these. As you say since I am after a specific vehicle, in theory, should be straighforward. Anyone that you have dealt with that you might be able to recommend?
TBH its a few years ago now and the guy that was most useful retired.

I'd suggest check reviews and give a few of them a call - see how helpful they seem. Or if you know where the car will be auctioned ring the branch and ask if they'd recommend anyone.
mas9926/11/2019 17:48

TBH its a few years ago now and the guy that was most useful retired. I'd …TBH its a few years ago now and the guy that was most useful retired. I'd suggest check reviews and give a few of them a call - see how helpful they seem. Or if you know where the car will be auctioned ring the branch and ask if they'd recommend anyone.


Thats the plan, I think. I've registered with BCA and the search facility is pretty good, so hopefully I'll find where the car will be sold and go from there.
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