Car renewal allowance

Just got a letter from the dealer I bought my car from saying to contact them about a ‘substantial renewal allowance’ – this is just them trying to get me to buy a new car by offering a discount on it, right?

Hang on, I think I know the answer to this.

I am still looking, it’s here somewhere.

Ahh found it.

Yes.

Chances are it’s a manufacturer / finance co incentive plus some dealer contribution. Nothing wrong with that if you don’t mind a change.

I assume current one is on PCP and it’s hit an equity sweet point in the depreciation curve.

That’s what I thought, just didn’t want to actually call them and find out! It also makes more sense to me as a PCP renewal type thing, but I bought the car outright so maybe they’re just confused. Wouldn’t surprise me, they forgot to put it through its MOT when I 1st got it!

Once you are on their books they will, if they are any good, continue to invite you to “special events” or indicate that there are some great offers for special customers etc. Ultimately they are looking to sell you a new car. Sometimes it is a dealer promotion thing and sometimes it’s a manufacturer sponsored thing. Not yet really found any of the deals that are unique or particularly more special for me as an existing customer vs just wandering in off the street

Yes, Ford are especially keen on this, although IME they tend to call people rather than write (they’re very pushy)

Usually they’ll say “we’re really short of 2 year old Fiestas” or whatever, you can have a brand new one for only £15 more a month! But it’s £15 more a month over a new 3/4 year term. My brother has been on effectively the same PCP deal with Ford for more than a decade, they want him to swap every year sometimes.

Yep, the car market is odd sometimes and there are plenty of people in the mindset of “buying nearly new for cash is best” or just who need a car ASAP and so need something in stock. There’s only so many demos, staff cars and rental fleet stock to go around though. Sometimes getting people out of a PCP early (and into a new one) can be a good way of getting some more.

Usually they’ll say “we’re really short of 2 year old Fiestas” or whatever, you can have a brand new one for only £15 more a month! But it’s £15 more a month over a new 3/4 year term.

This. All the This. He’s probably now paying way over the odds compared with what he could find if he let the deal run and go back to market afresh, but they make it so easy – come in, look at a spangly car, have a cup of nasty vending machine coffee, sign on the line. A week later another new car so you can be the envy of your neighbours.