Is now good time to trade in car

[LobsterMoth]

I’m 2 years into my 4 year PCP and dealer has said now is a good time to trade in because of a microchip shortage due to a fire in a factory in Japan (and my car value has subsequently increased). The vehicle on offer is about £30 more per month but not quite as nice as current car (which has sat nav and parking camera). The main advantage would be that it’s newer. Does anyone know if it would be sensible to trade in or stick with current car?

I wouldn’t change my car for a lesser car just because the new one was newer. He’s right about the chip shortage, but this also means there is a shortage of new cars and you could wait months for your new one.

Thanks Fallulah. That’s a helpful reply. I don’t really want to trade it in but it felt like now or never. Will probably leave it.

That sounds to me like they want to up the amount you're paying, and sell your car at a bigger profit than they might get in 2 years time.

Not a lot in it for you though is there? A worse car for more money, that is newer, but its not like a 2 YO car is likely to be unreliable or anything.

When I had a car on PCP, they phoned me several times to claim that I'd be in the money if I handed my car back to them, but it never stacked up when I started to look at what they were really offering.

Thanks Barbara. That’s so helpful.

What now? A worse car for more money?

Don't.

The price of 2nd hand cars has risen quite alot.

The dealer will be making a good profit.

You will be getting a car that will cost you more and be a lower spec.

Why would you pay more for a worse car?