PCP finance.

jrar

Has anyone any experience of PCP on used ("pre-owned") cars from main dealers i.e. does it work the same as PCP on new cars with the only difference being how to establish the true market value of the used car, which is not an isssue with a new car with a list price etc. ??

Drummerboy08

jrar wrote: »

Has anyone any experience of PCP on used ("pre-owned") cars from main dealers i.e. does it work the same as PCP on new cars with the only difference being how to establish the true market value of the used car, which is not an isssue with a new car with a list price etc. ??

Pretty much Yep. Higher APR too.

GavMan

Bigcheeze wrote: »

Are Ford not discounting the focus by 4k until 31 Jan so effectively he offered you Zero for the carisma ? http://www.ford.ie/Cars/Focus/Promotions#primaryTabs

We're assuming the dealer is working off the RRP and not off the discounted price.

Discount is 3750 on the Zetec. So 25o quid for the Carisma.

What state is the Carisma in. If it's running well with a fresh NCT, surely its worth a 1500-2000?

MarkN

jrar wrote: »

Has anyone any experience of PCP on used ("pre-owned") cars from main dealers i.e. does it work the same as PCP on new cars with the only difference being how to establish the true market value of the used car, which is not an isssue with a new car with a list price etc. ??

VW will soon (maybe they are already) be offering demo models on PCP with the new car APR - so once they do that, I reckon others will follow.

Carson10

The only way time I would buy a new car would be if I had the money for it, say 30k, and I would keep it for a good 10 years.

GavMan

Carson10 wrote: »

The only way time I would buy a new car would be if I had the money for it, say 30k, and I would keep it for a good 10 years.

Good for you.

But without new cars, there wouldn't be any used cars available for you

Drummerboy08

MarkN wrote: »

VW will soon (maybe they are already) be offering demo models on PCP with the new car APR - so once they do that, I reckon others will follow.

Think they already do it at 6.9%, Skoda offer 3.9% on anything up to a year old.

You'll never see an ultra low rate on a used car because there's no benefit to the manufacturer to sell used cars.

MarkN

Drummerboy08 wrote: »

Think they already do it at 6.9%, Skoda offer 3.9% on anything up to a year old.

You'll never see an ultra low rate on a used car because there's no benefit to the manufacturer to sell used cars.

VW dealer told me they're doing 1.9% on VW demos. Maybe I took it up wrong but I don't think so.

Drummerboy08

MarkN wrote: »

VW dealer told me they're doing 1.9% on VW demos. Maybe I took it up wrong but I don't think so.

I'd be very surprised because the 1.9% rate on the new cars is subsidised by the distributors margin.

The distributor wouldn't have the margin because they don't see the used car at any point - except when it's new.

Maybe they are tho.

carsfan

So VW Ireland Take a lower profit on each car sold on pcp to offer the cheaper rate?
Does this mean they make more if the car is sold straight without finance?
My dealer told me the rates will be going up this year as he reckons the market improves they will see less need to keep them.

Drummerboy08

carsfan wrote: »

So VW Ireland Take a lower profit on each car sold on pcp to offer the cheaper rate?
Does this mean they make more if the car is sold straight without finance?
My dealer told me the rates will be going up this year as he reckons the market improves they will see less need to keep them.

Pretty much Yep. They (and other manufacturers too) subsidise the bank offering the rate to lower it.

nowayout1

hey just back home from being in VW so a Highline 2.0L 110hp Jetta with there 161 offer for extras for €161 + metallic paint works out at €28,414.

For the Carisma which is working well and fresh NCT, is €1,500.

Deposit works out at €8,814.

With the car its €7,314 plus minus a deposit of €500 is €6,814.

Car be delivered in 16 weeks and I've to have the €6,814 when picking the car up.

PCP at €280 per month for 3 years.

Masala

nowayout1 wrote: »

hey just back home from being in VW so a Highline 2.0L 110hp Jetta with there 161 offer for extras for €161 + metallic paint works out at €28,414.

For the Carisma which is working well and fresh NCT, is €1,500.

Deposit works out at €8,814.

With the car its €7,314 plus minus a deposit of €500 is €6,814.

Car be delivered in 16 weeks and I've to have the €6,814 when picking the car up.

PCP at €280 per month for 3 years.

Hi ... Just to follow this thru as a working model for us learners to PCP ....you will have paid over €7314 plus €10,080 = €17,394 for the car by end of year 3. What then ...??? Reading the PCP rules - you can

1. You can buy the car??? At how much???? The balance of €28414- €17394= €11020?????
2. Trade in foe new model?? How much they guaranteeing you? Let's say the same model goes to €29000 in 3 years time
3 walk away and give back car??? And have nothing ... Having paid €17394!

Just trying to use this 'actual' purchase as a real example of the pro's and con's of PCP

Am I reading this right?? Can people fill in what to watch for using thus model???

mickdw

Masala wrote: »

Hi ... Just to follow this thru as a working model for us learners to PCP ....you will have paid over €7314 plus €10,080 = €17,394 for the car by end of year 3. What then ...??? Reading the PCP rules - you can

1. You can buy the car??? At how much???? The balance of €28414- €17394= €11020?????
2. Trade in foe new model?? How much they guaranteeing you? Let's say the same model goes to €29000 in 3 years time
3 walk away and give back car??? And have nothing ... Having paid €17394!

Just trying to use this 'actual' purchase as a real example of the pro's and con's of PCP

Am I reading this right?? Can people fill in what to watch for using thus model???

Handing the car back is a bad idea. There will be equity in the car at end of term - the car will be worth more than what is owed. That will form some of deposit on next car.
So even though in the above example they may have paid out 17k over the 3 years, they may at that point have 4k equity in the car meaning true cost of 13k over 3 years.
That would be typically enough cost of buying such a car every 3 years
my family here change passats every 3 years for about 13.5k

Nonoperational

You can just sell the car privately at the end of the 3 years, you will have more equity than the GFV and you have gotten a loan at 1.9% which is miles better than any bank.

ShadowHearth

I am actually looking in to this myself. Looks like soda is doing 0% on fabia or that's a bug on their website.
For month Carlo spec it works out about 19k. 5.6k deposit trade in and 150 per month. I have to say I am very tempted.
It actually works out cheaper to take fabia then citingo.

How bad they are with trade ins? I wonder how much would they give me for my subaru.

MuppetCheck

ShadowHearth wrote: »

I am actually looking in to this myself. Looks like soda is doing 0% on fabia or that's a bug on their website.
For month Carlo spec it works out about 19k. 5.6k deposit trade in and 150 per month. I have to say I am very tempted.
It actually works out cheaper to take fabia then citingo.

How bad they are with trade ins? I wonder how much would they give me for my subaru.

Depends on the garage tbh. I'd say if you could sell your own privately you'd be in a much better position though.

If you want the details of a really good Skoda guy in Cork let me know. He bettered anything I got elsewhere by a considerable amount and was refreshingly straight up to deal with.

ShadowHearth

MuppetCheck wrote: »

Depends on the garage tbh. I'd say if you could sell your own privately you'd be in a much better position though.

If you want the details of a really good Skoda guy in Cork let me know. He bettered anything I got elsewhere by a considerable amount and was refreshingly straight up to deal with.

There is one in Cork and another in Banteer. I was recomended Banteer fella by co-worker.

I will still try to sell subaru privately, but I doubt it will sell fast in January. I had some trader offering me 4k already, but he can feck off.

MuppetCheck

ShadowHearth wrote: »

There is one in Cork and another in Banteer. I was recomended Banteer fella by co-worker.

I will still try to sell subaru privately, but I doubt it will sell fast in January. I had some trader offering me 4k already, but he can feck off.

Bought in Banteer before too and they are v good. 4k? Fcuk that! Even if you got a mid-way price between the two privately you'll be quids in.

nowayout1

Masala wrote: »

Hi ... Just to follow this thru as a working model for us learners to PCP ....you will have paid over €7314 plus €10,080 = €17,394 for the car by end of year 3. What then ...??? Reading the PCP rules - you can

1. You can buy the car??? At how much???? The balance of €28414- €17394= €11020?????
2. Trade in foe new model?? How much they guaranteeing you? Let's say the same model goes to €29000 in 3 years time
3 walk away and give back car??? And have nothing ... Having paid €17394!

Just trying to use this 'actual' purchase as a real example of the pro's and con's of PCP

Am I reading this right?? Can people fill in what to watch for using thus model???

So basically he explained to me was. That with the three models available trendline, Comfortline & highline. They come with there own interest rate, trendline 5.9% Comfortline 3.9% & highline 1.9% made me swing for the highline & comes with a better spec plus interest that'd of been paid was €800 compared to €1500 for a Comfortline.

Yeh so before you've made your final payment you go back & work out a new deal on a model you like. So let's say the car is €29k with the Guaranteed Minimum Future Value they know €10k off so it's now €19k plus the car as a 3 year old with 60k kilometres on it goes for €15k so you've €5k off on your deposit so you pay a further €4000 deposit & €10k over 3 years again. Plus you have a right as a consumer to say I do more than 20k kilometres a year lets say 30k a year they do a GMFV based on a 3 year old car with 90k kilometres on it.

Yeh you can hand the keys back, go back & do a new deal on a new car of any make or back to VW in this case, or agree to the final payment at a higher rate of interest.

Me and the wife said we'll do it but clear our loans etc this year and get a new car for next January.

ShadowHearth

MuppetCheck wrote: »

Bought in Banteer before too and they are v good. 4k? Fcuk that! Even if you got a mid-way price between the two privately you'll be quids in.

Yeah, he would be the man I would go and see. I might wait a bit and see if my car sells first in a week or two, if not, Ill go talk to him.
In fairness I will take anything in 5k+ Region for my car no problem. 4k is taking a piss.

Thing is with PCP Skodia Fabia monte Carlo 1.2TSI with few options comes out 160eu. Tax and Insurance would be tiny on it. I pay 130eu per month for tax and insurance on scooby alone. Yes, Fabia is not a 4x4 Turbo Monster, but it would be perfect for me right now.
I am not looking in to saving money by buying brand new, but if I can have at least once new and pretty much for same running costs that I am used right now, feck it, then might get it out of my system.
Perfectly I want go in there with cash as I bet I get very little trade in value for scooby, but still worth a go.

tramoreman77

Why is everyone I know getting these Dacia s on PCp finance

tramoreman77

tramoreman77 wrote: »

Why is everyone I know getting these Dacia s on PCp finance

Probably because they're dirt cheap ?

Absolutely Hideous things, I don't know how anyone could drive one !

carzony

Deleted User wrote: »

Probably because they're dirt cheap ?

Absolutely Hideous things, I don't know how anyone could drive one !

Neighbour has a white one. I'd rather buy a decent second hand car then a new Dacia.

jca

Wait until 191 rolls around and they find that their Dacia is worth sfa and they need to find a wedge of cash to relive the new car experience. ..

ShadowHearth

jca wrote: »

Wait until 191 rolls around and they find that their Dacia is worth sfa and they need to find a wedge of cash to relive the new car experience. ..

Actually, I think that it is one of the most important research work to do before picking up pcp. What it's Value will be in 3 years a.d which brands and models keep their value well.

I am looking in to skoda citigo ( don't laugh, you fecker, o actually really liking it and it would suit me to the bone!) and deposit on it goes around 4.5k and last balloon payment is around 4.5k too. The 131 citigo in general keep a value of 8-9k second hand. That's pretty solid 4-5k you should have when trading in. Very reasonable. I know it's not garlanded that your 161 will have the same trend, but if you check some other cars, you can see that after 3 years value is very close to last payment, which makes the whole pcp redundant.
For example I would not take Citroën on pcp. As much as I love the new range and o really think it is very underrated brand, the value in the end of 3 years will be abysmal. I think Peugeot will be in same position, but I really do like new 208.

Another thing I have in my head... Are we waiting some sort off pcp Buble to burst? I am pretty sure sales of new cars increased, but market is flooded with overpriced 131 cars. With pcp looking so good, why would you go with 131 car. Is it me or pcp is like a financial pyramid that is waiting to go bust.

carzony

carzony wrote: »

Neighbour has a white one. I'd rather buy a decent second hand car then a new Dacia.

Exactly !

+ I'm only about 5 foot 8 and my head was tipping the roof in a Duster .

ShadowHearth

[Deleted User] wrote: »

Exactly !

+ I'm only about 5 foot 8 and my head was tipping the roof in a Duster .

They are still around 20k+++, which is mad. You can get better brand car for that money.

ShadowHearth

ShadowHearth wrote: »

They are still around 20k+++, which is mad. You can get better brand car for that money.

I do notice it's mainly people 50 odd who buy Dacia , anyone notice this ?

MarkN

ShadowHearth wrote: »

For example I would not take Citroën on pcp. As much as I love the new range and o really think it is very underrated brand, the value in the end of 3 years will be abysmal. I think Peugeot will be in same position, but I really do like new 208.

It's an interesting question. Traditionally, these brands did not retain any sort of decent residuals but if the dealers are to get customers to take a second car on PCP then they will have to sustain the values somehow. It's hard to see how they will do this without overpricing 3 year old cars which means the second customer gets stung but if that happens then customers will go elsewhere. You're right though, it's important to choose a brand carefully. The difference in repayments alone being determined by a lower GFV sometimes mean you could be in a more expensive car for similar repayments.