Walk me through "upgrading" at the end of a PCP Contract

[mrkisskiss]

Hi guys

Had my Model S P100D for 3 years now. It's immaculate, and only done 14,000 miles. AP2, March 2017 build... great car, but I am looking to hand it back at the end of the PCP and move to either the long range Model S, or the Model 3.

I was wondering if someone who has 'switched' their car after 3 years can walk me through the process? As I understand it, I need to get a settlement letter from Alphera Financial (in my case), then submit a trade-in form with Tesla?

Any step-by-step advice anyone can give me would be appreciated so I'm not going into it blind! First time PCP'er and so on...

Thanks!

 

[Bobly]

Not done it with tesla yet, but from previous experience..

your PCP has a balloon payment due at the end, this should be in your original contract.

Get a valuation on the car, if it’s more than the final balloon payment you have to make (sometimes referred to as Minimum Guaranteed Future Value) then happy days you have some equity, so you may want to trade it in (which basically means you’ll buy the car at the end of the contract and immediately sell to Tesla or they may just settle the outstanding finance for you) the remainder can go into the deposit for the new car.

If the valuation doesn’t leave you any equity, just let them know you’re handing the car back, and you should be all done and can just start a new contract for your next car. If there is any damage to the old car, you may be out a few quid depending on how picky the finance company want to be.

 

[Pablosammy]

If the trade in is greater than the settlement, you can keep the difference or use it as a deposit.

If it's less than the settlement, you can just hand it back assuming you haven't gone over your mileage allowance.

Another thing to consider... if it's immaculate and therefore more attractive to buyers, it might be better to sell privately if you can deal with the hassle?

I've no experience handing a Tesla back, so I don't know the exact experience, but I assume the same principles apply.

 

[Roy W.]

Not done it with tesla yet, but from previous experience..

your PCP has a balloon payment due at the end, this should be in your original contract.

Get a valuation on the car, if it’s more than the final balloon payment you have to make (sometimes referred to as Minimum Guaranteed Future Value) then happy days you have some equity, so you may want to trade it in (which basically means you’ll buy the car at the end of the contract and immediately sell to Tesla or they may just settle the outstanding finance for you) the remainder can go into the deposit for the new car.

If the valuation doesn’t leave you any equity, just let them know you’re handing the car back, and you should be all done and can just start a new contract for your next car. If there is any damage to the old car, you may be out a few quid depending on how picky the finance company want to be.

That certainly ties in with my own experience a couple of years ago when I handed back a Leaf after the two year PCP.

Be very wary of even minor cosmetic damage, kerb rash, or even some stone chips. When Nissan Finance came to assess mine, the guy took about thirty minutes taking photos of every aspect of the car, and said that any damage would be charged for. Mine too was perfect, but he said, for example, in the case of kerb rash, they would charge £400 for a new wheel!

 

[Bobly]

That certainly ties in with my own experience a couple of years ago when I handed back a Leaf after the two year PCP.

Be very wary of even minor cosmetic damage, kerb rash, or even some stone chips. When Nissan Finance came to assess mine, the guy took about thirty minutes taking photos of every aspect of the car, and said that any damage would be charged for. Mine too was perfect, but he said, for example, in the case of kerb rash, they would charge £400 for a new wheel!

I’ve had a BMW on finance before and they sent me a pretty comprehensive guide on what damage would be charged for and the prices and to be honest it was pretty reasonable, I.e. in that instance curb damage was less than it would have cost me to get it repaired myself. Always worth doing your homework as every manufacturers finance may be different.

 

[mrkisskiss]

Thanks chaps, most helpful!

When Nissan Finance came to assess mine, the guy took about thirty minutes taking photos of every aspect of the car, and said that any damage would be charged for

He must be fun at a party. Thanks Roy, this is good to know. I think there is minor kerb rash to the left rear wheel (of course!) I'll look to get this repaired ASAP; shouldn't be hard.

Last n00b question: getting a valuation... is this basically what the Tesla Trade In form is doing? Is it worth getting a few valuations from other companies? Any recommendations? Thank you!!

 

[M3PMike]

As I understand all vehicles being returned (lease/pcp etc.) are appraised following the BVRLA Fair Wear and Tear guidelines which can be downloaded from their website.

I returned my Jag XF a week ago and it was cheaper to return it with kerb rash (£65.00 per wheel) than organise a local firm to repair.

 

[Pagemakers]

Hi guys

Had my Model S P100D for 3 years now. It's immaculate, and only done 14,000 miles. AP2, March 2017 build... great car, but I am looking to hand it back at the end of the PCP and move to either the long range Model S, or the Model 3.

I was wondering if someone who has 'switched' their car after 3 years can walk me through the process? As I understand it, I need to get a settlement letter from Alphera Financial (in my case), then submit a trade-in form with Tesla?

Any step-by-step advice anyone can give me would be appreciated so I'm not going into it blind! First time PCP'er and so on...

Thanks!

I’m doing exactly the same as you. S to a 3P

Ordered Feb 11. Delivery March 13

Got a good trade in from Tesla for my S online at the time of ordering.

Put the car on Autotrader too for a couple of thousand more and if it doesn’t sell I’ll just drop my car to Tesla when I collect.

I could have just given the car back and moved on.

That’s about it really.

 

[DJP31]

Thanks chaps, most helpful!

Last n00b question: getting a valuation... is this basically what the Tesla Trade In form is doing? Is it worth getting a few valuations from other companies? Any recommendations? Thank you!!

Yes, that form will trigger Tesla’s eventual response. I would ask Richard Symons for a quote. He has bought/sold more used Tesla’s than anyone else and is very highly regarded. It will be very interesting to see how his valuation compares to Tesla’s trade in. If Tesla take the car in p/x they will switch off the free Supercharging which currently sits with the car, and also the Premium Connectivity. They may well you offer more in order to be able to switch off these liabilities.

Keep us posted, I’m heading in the same direction as you although a 4 year PCP, finishes this time next year and I’m over the mileage too .

R Symons Ltd

 

[mrkisskiss]

I got a woefully low quote back from Tesla, compared to the Optional Final Repayment amount. I think P100Ds were really badly hit during this time, since Tesla basically dropped the price £50k overnight.

So the main thing I'm trying to avoid is not having a car for a bit... If I order a new Tesla now, it'll be May before it's delivered, and my contract runs out at the start of May... I know I could get a CPO vehicle much quicker, but there isn't quite the config I'm looking for available right now.

I did wonder about the CPOs though - currently on the Tesla site there's a lot of "less than 50 mile" Teslas down in Southampton. Are these Teslas that were rejected on delivery for some reason? Where do these come from if they're brand new models?

 

[Durzel]

Despite Tesla's website saying May I would not expect Model 3 deliveries to resume until June. Everyone (and I mean everyone) I have spoken to in Tesla circles has said the same thing, no more boats carrying Model 3s until towards the end of Q2.

 

[DJP31]

If you ordered a custom build now you wouldn’t get it in May, ignore what the website says. End of June for quarter end would be nearer the mark.

If you are searching the new inventory section of the site then these are new cars on their way over from Fremont. The reference to Southampton is because it’s not arrived yet in the U.K. Ay car with more than 50 miles is likely a demo car.

How far off the spec you want are the inventory cars?

 

[Mr H]

I did wonder about the CPOs though - currently on the Tesla site there's a lot of "less than 50 mile" Teslas down in Southampton. Are these Teslas that were rejected on delivery for some reason? Where do these come from if they're brand new models?

They're ones that haven't landed in the country yet. They always say Southampton and 50 miles on the clock

 

[Harv3y]

I got a woefully low quote back from Tesla, compared to the Optional Final Repayment amount. I think P100Ds were really badly hit during this time, since Tesla basically dropped the price £50k overnight.

So the main thing I'm trying to avoid is not having a car for a bit... If I order a new Tesla now, it'll be May before it's delivered, and my contract runs out at the start of May... I know I could get a CPO vehicle much quicker, but there isn't quite the config I'm looking for available right now.

I did wonder about the CPOs though - currently on the Tesla site there's a lot of "less than 50 mile" Teslas down in Southampton. Are these Teslas that were rejected on delivery for some reason? Where do these come from if they're brand new models?

They are Tesla’s that are currently on the boat on the way over I believe. They have stated Southampton so that they won’t need to be transported to dealerships. They’re ‘less than 50 miles’ because Tesla can’t be bothered to find out the mileage on each one but they’ll be delivery miles only.

 

[Durzel]

As said above ones on inventory that say Southampton are on a boat. There is no Tesla SC currently in Southampton.

 

[Harv3y]

As said above ones on inventory that say Southampton are on a boat. There is no Tesla SC currently in Southampton.

No but I believe they are arranging collection from the docks?

 

[Durzel]

I think they’re arranging delivery from there, as in that’s one of the places that the home deliveries are sent from.

 

[mrkisskiss]

I see... great to know - thank you! If these are being sold CPO and they haven't even landed in the country... I take it these are cars that have been canceled or rejected by the original buyers, before even taking delivery?

Home delivery - so if I got one of these CPO cars, they're brand new... cost less, and someone would drive it to me from Southampton? This is looking much more tempting

 

[DJP31]

I see... great to know - thank you! If these are being sold CPO and they haven't even landed in the country... I take it these are cars that have been canceled or rejected by the original buyers, before even taking delivery?

Home delivery - so if I got one of these CPO cars, they're brand new... cost less, and someone would drive it to me from Southampton? This is looking much more tempting

I’m not sure where you are getting ‘CPO’ from. This typically means Certified Pre Owned, which Tesla don’t do. They have ‘new inventory’ which are new cars and often not yet in the U.K (hence Southampton) or ‘used inventory’ which are second hand, but don’t go through the full ‘renovation’ process that CPO normally means.

it’s being reported some new cars are being taken from the docks to owners, so far this has only been for a handful of cars bought on lease. I’ve no personal experience but think lease cars are often delivered in this way.

A PCP/HP /cash purchase would still go via the showroom/service centre route.

 

[mrkisskiss]

Interestingly... for me, all those Southampton Teslas on the existing inventory site, have just... disappeared as of yesterday.