Guaranteed Future Value?

[markwm]

What GFV's are people getting now? Just had a quick email exchange with a dealer I'd used before who offered final gfv of 39k on a 87k car over 36m, 10k miles. Seems low.

[RSphantom]

What GFV's are people getting now? Just had a quick email exchange with a dealer I'd used before who offered final gfv of 39k on a 87k car over 36m, 10k miles. Seems low.

Mine was 12K per annum, 24 months, GFV of £51K. Not sure the extras have anything to do with it but that was on an £89.5K car (before any discounts).

[doodlebug]

The GFV will be set based upon the deposit and repayments added to the usage factors. So you have to compare apples with apples.

[Mr V10]

Your deposit won't effect the GFV.

The only two things that will are 1) Miles 2) Term 3) Sometimes spec (e.g RS 4 Limited Edition vs a normal RS 4)

The GFV with Audi/VWFS is usually quite conservative so you've got some equity to use when it comes to part exchanging it at the end of the term.

Mercedes work in the opposite way and inflate the GFV to attract business with lower payments, which means you'll break even at the end of the term but have no equity to carry across... Fantastic when you're buying the car, but not so great for some come change time when you'd need to find another deposit.

[doodlebug]

Mmm, I'd beg to differ based on the conversations I've had this week.

GFV can be altered to tweak numbers.

[Mr V10]

Agreed. It can be manipulated manually, a lower GFV can be set to give you more equity at the end of the term, at the cost of higher monthly payments.

A deposit won't effect your guaranteed future value, you could put down £1,000 or £20,000 and the GFV will be exactly the same.

The factors that determine the GFV are.

1) Miles
2) Term
3) Spec (occasionally)

Speak to your dealer and get some clarity.

[doodlebug]

We're agreed! I was wrong on deposit.

[Mr V10]

I've just ran a quote.

Brand new RS 6 Avant, no options, list price.

With £1,000 and £20,000 deposit the GFV was exactly the same.

GFV stands for guaranteed future value, your deposit amount is therefore irrelevant when Audi set the GFV for a car.


Edit: Just seen your post! Good, I was starting to doubt myself, and I like to think I'm sh1t hot at my job.

[RSphantom]

As per above. My GFV was £51k but I decided to put more deposit in which would have reduced my monthly payments. However I decided to keep the payments higher and in effect dropped the GFV £44k. I consider the GFV as the balanced rather than future value. Also means you pay a bit less interest overall even though the APR is relatively low. Also the FL has a £2K higher GFV based on the same figures/spec.

[W8PMC]

As you say, spec defo has a part to play, but not a major part. A section of options can work out near as damn it FOC as their cost is countered by the benefit to GFV.

Things such as bigger wheels & SatNav usually fall into this camp, however i'm sure other options such as perhaps B&O or Exclusive colours/trim would have no real impact on the GFV so become a very expensive option in the long term.

[Mr V10]

As per above. My GFV was £51k but I decided to put more deposit in which would have reduced my monthly payments. However I decided to keep the payments higher and in effect dropped the GFV £44k. I consider the GFV as the balanced rather than future value. Also means you pay a bit less interest overall even though the APR is relatively low. Also the FL has a £2K higher GFV based on the same figures/spec.

Good move IMO. That's the way to do it.

[RSphantom]

As you say, spec defo has a part to play, but not a major part. A section of options can work out near as damn it FOC as their cost is countered by the benefit to GFV.

Things such as bigger wheels & SatNav usually fall into this camp, however i'm sure other options such as perhaps B&O or Exclusive colours/trim would have no real impact on the GFV so become a very expensive option in the long term.

Agreed, had a long conversation with the stealers around this. Apparently, on the RS6 the options that retain some of the value come resale time are wheels, dynamic pack, sunroof and exhaust. They even said that Ceramics will help but you will take a hit against new. Things that don't really make a lot of difference are B&O, HUD, ACC, Night Vison, Styling packs etc. Saying all of that you should still buy the spec you want as with this sort of car it's not all about what it's worth when I sell it.

[Lewy]

My GFV is set at £2700 as we manipulated the mileage to 29,000 a year. I put in 50% as a deposit and payment are similar to a HP rather than a PCP deal.

I don't like PCP, this was the best way to get a "sort of" HP deal with the Audi Contribution, a monthly payment I was happy with and a small payment at the end of the deal to buy the car outright.

The thinking, I'll have equity in the car after 4 years, however much that will be. 4 years is the longest I've ever taken a car over, but I've owned my current A6 for coming up 5 years and it does everything I need it to do.

Cheers
Lewy