Toyota Yaris Offer

[sh22]

Both my wife and daughter have the Yaris, both are on a PCP  and both pay around £190 a month to lease these cars.   My wife has had hers from new and is 20 months old. My daughter's is 12 months old, an Icon with the wife having the Design version.

So, took a call from the dealer where we obtained both cars and who supplied my new CHR  this year and he asked if my wife and daughter would like a brand new Yaris for April 2023 delivery, (Same Models) paying the same monthly PCP amount, No deposit or money up front and a shorter PCP lease period !!

Took about a minute to decide and my wife and daughter signed up same day.  

When I asked the salesman how these offers can be possible he said Toyota were pushing hard to sell/register more cars for 2023 and offering all existing PCP customers a new replacement at the 1.9% APR  figure.     My daughter only took delivery of her Yaris in August 2022 and was genuinely in disbelief that the dealer would change the car in April without her paying more  per month with no request for a deposit and for a shorter lease period than she is on now.   

The dealer said they could carry on using their cars till the new ones arrived.    The salesman confirmed they were guaranteeing the future value of both cars for April 2023 so there was no chance of adjusting the figures if market forces change.  

Why wouldn't you take up an offer like this?

[bathtub tom]

Is there a mileage limit?

[TonyHSD]

There is always a mileage limit on any pcp or lease cars. How much is the limit on their deals is interesting. 

[Yugguy1970]

What dealer is this one?

[Roy124]

My Yaris Cross on HP deal came the same way.  The catch was the £4.5k markup on the 2 year old Corolla. 

[AJones]

14 hours ago, sh22 said:

Why wouldn't you take up an offer like this?

I would want to scrutinise how the final values of the new and old PCP contract compared. Under your existing contract you have the right to buy the car at the end for the final value, which may be above or below the market value, so you may have some value in that contract, I.e. you could buy it and sell it on, or trade it in and get the dealer to pay off the finance and benefit from that value.

While the monthly payments may still be the same for a newer car, does it affect your situation at the end of the contract? Are you better or worse off when the contract comes to an end?

Also, with the huge increase in used car prices, what is the value of the cars today and how does it compare to the finance outstanding? If the cars are worth more than the finance, how much are you handing over to the dealer, in effect, to secure the new deal? 

[Stephen_52]

Yaris Icon bought May 2021 email from my dealer, last week, similar payments? No mention of term or the conditions. I wasn't interested. 

 

[Yugguy1970]

Dealers want to make money of course but they also want to keep your custom so you can usually get a deal you are both happy with.  

Scrutinese the figures yes but if they work out then why not?

[Roy124]

Stephen, that is both general and specific.  I declined the first invite at the 12 month point but accepted at the 2year point.  We were interested in the Estate version of the Corolla then but more interested in the Cross this autumn.  

We saw the Yaris, it suited our needs and the deal was a level payment.  We are delighted with the car and happy with the cost.  The dealer marked our if Corolla up by 25% and in that respect I think we could have done better.  Next time I shall research the exchange price in more detail.

Regardless of intentions I shall accept future invites as a way of keeping current with the Specs.

[RonYarisX]

I'm not familiar with Yaris prices but this is on par with my experience with the used prices of Yaris Cross. I can't understand why anyone would choose to buy a used Yaris Cross at the moment when you can buy a brand new one, not just for a little less but in some cases for thousands less than you can buy a used car.

It boils down to this. If someone is happy with the price they're paying for their car, then that's all that matters.

Me? Not knowing the figures involved then in principal I agree, why wouldn't I take up the offer. What I wouldn't have done tho is sign up to the offer you're currently on because you're obviously been paying too much.

21 hours ago, sh22 said:

When I asked the salesman how these offers can be possible he said Toyota were pushing hard to sell/register more cars for 2023 and offering all existing PCP customers a new replacement at the 1.9% APR  figure.

He sounds like a typical Arthur Daley.  The obvious response is if Toyota were pushing hard to sell/register more cars then why limit this to existing PCP customers?  It's typical sales BS.

If I hadn't walked away already I'd have also asked how did he square that with news that Toyota want to increase prices?

Price hikes

Never listen to whatever a salesman tells you because the only person he's looking to benefit is himself.   

Edited November 6, 2022 by RonYarisX
spelling

[Cyker]

I suspect they get fairly large kickbacks for getting people to sign up for new PCP contracts, as that alone seemed to unlock a significant dealer discount when haggling!

 

[Roy124]

Regarding price hikes, my dealer contract allowed for price hikes and sure enough the price hiked. 

The dealer did not increase the price. 

Their money comes from churn. By selling me a car and someone else my car, that is two cuts.  Without a car to sell, no cuts. 

[Hybrid21]

The only one making money from these deals is the dealer 👍

[StreetHawk]

You say ‘no request for a deposit’ but they will be giving the dealer the equity they have in their cars, this is effectively the deposit. 
 

I would check the breakdown of the deals before signing. Not saying they aren’t getting a good deal but they may be giving away a lot of equity and not realising. 
 

Check how much Motorpoint are offering to buy them for? I keep an eye on the values of our cars and Motorpoint are consistently higher than WBAC etc.. 

[Bemused2]

Last month as my three year P.C.P was coming to an end on my Yaris the dealer rang to say that I could have a new one for the same monthly payment I have been paying. The new one cost nearly £3000 more than my Yaris when new. Great. That is until I realised that the P.C.P would be over four years and not three. Beware.

[Hybrid21]

Whenever I hear "you can have a brand new car for the same payment"  I would listen to the details then spend time doing calculations before signing up.

Dealers are there to make money off you and somewhere in the deal that's where it'll be. 🙂

 

[TonyHSD]

So it is indeed so difficult to buy a car these days. No more tyre kicking, road tests, haggling the price and conditions?! The car buying should be as easy as buying a book from Amazon. Order and you get it next day, if not available, buy it and you will get it as soon as been printed out and ready for dispatch. You will be charged when the parcel is delivered and no price change even if been 12 months waiting. Dealers for selling cars should not exist anymore., and we are heading this direction, the question is how long before they really disappear. 

[dave hendy]

15 minutes ago, TonyHSD said:

So it is indeed so difficult to buy a car these days. No more tyre kicking, road tests, haggling the price and conditions?! The car buying should be as easy as buying a book from Amazon. Order and you get it next day, if not available, buy it and you will get it as soon as been printed out and ready for dispatch. You will be charged when the parcel is delivered and no price change even if been 12 months waiting. Dealers for selling cars should not exist anymore., and we are heading this direction, the question is how long before they really disappear. 

Unless I am buying a car or motorcycle I have tried before there’s no way I would just buy one, they are way too expensive for that, so hopefully dealers won’t disappear for some time to come. I wouldn’t even buy the same model if it had been updated in any significant way without first being happy I still like it?

[Roy124]

Many, many years ago I was told the US system. 

In UK you would bargain the offer price your your car then haggle the price of the new car. 

The US system argued that both prices were irrelevant as what you gain on one the dealer will simply loose you on the other. 

Simply go in, say I can pay £300/m.  What deal can you do?  

Is 3 years or 4 a big deal?  When I bought my first Toyota I expected a 3 year deal.  In the event it was 42 months.  Two years later, new car, deal included servicing that had been added on as a separate deal on the first car. End result, same payment, same term.  

Over the time my ability to pay has increased. I will be looking to order a new car at the 24 month period everything being equal. 

[Hybrid21]

I bought my RAV4 on a PCP, first ever PCP and I had always been the first to decry the PCP for various reasons 😮

It's over 24 months with 0% interest, so when I sat down and looked at the figures it was a no brainer  👍

[bunnyrabbit03]

Yes, the details of the deal are - as always - key. I was also offered to swap a MY22 for a MY23 Corolla. When I requested a detailed quote, it turned out roughly £50 more expensive per month and the GFV was almost £3000 higher at 1.9% APR vs 0% on my current deal.

[sh22]

Certainly a lot of varied pros and cons I see.   The mileage allowance is the same as the existing cars, our choice and is 8,000 miles a year, very unlikely to be exceeded. The existing and new Lease agreements have the 3 customer options of hand back, buy or use the car's probable equity towards another car. 

Regarding equity we have the usual  guaranteed future value for the existing Yaris cars and a new guaranteed future value on the new ones, so in the case of the wife's existing lease it's £8,955 to buy it in 2024 and a £10,444 to buy the new car in 2026 based on the contract periods.  I've leased my own cars for some time now which were mainly Lexus cars and now Toyota and to date there has always been really healthy  equity to put forward when the lease was coming to an end.  So yes the dealer may well be hiding price increases in all the jargon they might use but dealers don't hold a gun to customer's heads and force them to change their car before the lease ends.  Manufacturer's will continue to raise prices every year and even if used cars decline in value and buck this trend of high residual used car prices we can all still make choices to meet our own needs.  Don't get all bent out of shape in the belief car dealers are the devil in disguise.  

 

[StreetHawk]

It does sound like you are confusing equity with the GFV and also leasing and PCPing.

Do you know how much equity you have in both cars? (The cars value now minus the amount to clear the finance) This is the amount you are giving to the dealer on each car.