PCP finance.

mickdw

dloob wrote: »

It looks to me that BMW are being maybe a bit more aggressive on the GFV to reduce the monthly payments.

Ya they generally seem to do that.
might leave ya alittle more short on deposit at the end.

Fiskar

dloob wrote: »

It's probably a little bit of special case as the A3 was higher spec than normal to shift the last of the old models.
Although I suppose the fact that there is a newer model in the same year would decrease it's value too and balance that out a bit.

Anyway I'll let you know how I get on in three years!
It looks to me that BMW are being maybe a bit more aggressive on the GFV to reduce the monthly payments.

Interesting calculations, BTW, nice choice of car and engine, way better than the 1.4TFSI

BMW 120ti sport

Cost of car = €38,500

Deposit = €21,500
PCP cost =€15,012 (417*36)
Settlement €16,000

total cost to get car =€52,512 less Audi Settlement of €12,000

Is the above technically correct? Yes

We got a Hi line Golf last year on PCP

Cost of Car =€27,422 less discount €1,440 = €25,982

Deposit = €5,248
PCP cost=€11,818
Settlement €9,988

total cost to get car =€27,054

GustavoFring

Fiskar wrote: »

Interesting calculations but I cannot get my head around the sums, am I missing something from the list below? BTW, nice choice of car and engine, way better than the 1.4TFSI

BMW 120ti sport

Cost of car = €38,500

Deposit = €21,500
PCP cost =€15,012 (417*36)
Settlement €16,000

total cost to get car =€52,512

Is the above technically correct?

We got a Hi line Golf last year on PCP

Cost of Car =€27,422 less discount €1,440 = €25,982

Deposit = €5,248
PCP cost=€11,818
Settlement €9,988

total cost to get car =€27,054

Take his own settlement off that is how I read it.

Fiskar

Gotcha, the Audi settlement, cheers, was getting worried

mickdw

Bmw offered 21.5k for the audi but there was 12k owed on it so a real deposit of 9.5k towards the bmw.

Edit - mistake corrected

dloob

GustavoFring wrote: »

Take his own settlement off that is how I read it.

Yes that's right, you need to take the finance settlement to Audi away from the trade in values.
So it's 21500 -12,000

Fiskar

dloob wrote: »

Yes that's right, you need to take the finance settlement to Audi away from the trade in values.
So it's 21500 -12,000

Cheers, that is a good deal.

sheff the ref

yop wrote: »

I've negotiated on the last 2 cars I have bought and "won"
Both were 0% PCP

It is a very good time to be buying new cars at 0% finance because the car companies have aggressive targets to meet and if they get a smell that you are genuinely willing to purchase, you will get a good deal at the end of the month or the end of the quarter. In that case your power of negotiation is greater, particularly if they have a customer for your trade-in.

You might sometimes get an upgraded spec if there there is a an unsold model of the car in the country and they need to get it off the books immediately, and the spec you really want will take a couple of months to manufacture. They don't want to lose you either.

All about being in the right place at the right time

MidlandsCarol

Guys reading up loads on pcp and have so far only spoken to mazda but can u tell me where or how u get the 0% finance?? On Mercedes and audi I only see 3.9% or 5.9%. Thanks! I'm trading in 132 mazda 6 and probably trading down. TIA

sheff the ref

MidlandsCarol wrote: »

Guys reading up loads on pcp and have so far only spoken to mazda but can u tell me where or how u get the 0% finance?? On Mercedes and audi I only see 3.9% or 5.9%. Thanks! I'm trading in 132 mazda 6 and probably trading down. TIA

I think most of the 0% finance deals ended in February. Only the car companies that have their own banks were offering it. Volkswagon and its associated brands Skoda and Seat and probably Renault

vintagevrs

Depends on the manufacturer just. VW and Seat currently do 0% finance on some of their range. Maybe others too that I am not aware of.

markad1

VW are doing PCP 0% on select highline models till end of March.

http://ext.volkswagen.ie/en/2016.html

seb102

Anyone know how often brands like Volkswagen have those 0% offers? Is it every year?

Fiskar wrote: »

Interesting calculations, BTW, nice choice of car and engine, way better than the 1.4TFSI

BMW 120ti sport

Cost of car = €38,500

Deposit = €21,500
PCP cost =€15,012 (417*36)
Settlement €16,000

total cost to get car =€52,512 less Audi Settlement of €12,000

Is the above technically correct? Yes

We got a Hi line Golf last year on PCP

Cost of Car =€27,422 less discount €1,440 = €25,982

Deposit = €5,248
PCP cost=€11,818
Settlement €9,988

total cost to get car =€27,054

What was the APR on that? 1.9%?

Fiskar

Yes Seb102, it was 1.9% finance. A steal of a deal.

Liam McPoyle

Hi folks.

Myself and my wife are looking at getting a new car and using PCP but are completely new to it.

We were in a VW dealership today and the below is what was offered.

Vehicle price - €28,388, 1.2 Golf TSI.

Deposit is €2,833

Monthly installments are €430 @ 0% APR.

GFV of €10,000.

Is this a good deal?

In terms of the mileage, my wife will be the main driver, we would anticipate annual mileage would 30k km or less over the three years.

Re the GFV, am I right in thinking that €10k is the minimum but it could end up being worth more than that?

Say it was worth €12k and we decided to get a new car in 2019 with the same dealer, would the vehicle value be put against a new car, say the new car was €30, would we owe €18k?

Setting up the PCP again would presumably mean the installments on next vehicle would be lower (depending on interest rates etc) than we would be paying on the 2016 model?

Hope the above makes sense!

Fiskar

Business Cat wrote: »

Hi folks.

Myself and my wife are looking at getting a new car and using PCP but are completely new to it.

We were in a VW dealership today and the below is what was offered.

Vehicle price - €28,388, 1.2 Golf TSI.

Deposit is €2,833

Monthly installments are €430 @ 0% APR.

GFV of €10,000.

Is this a good deal?

In terms of the mileage, my wife will be the main driver, we would anticipate annual mileage would 30k km or less over the three years.

Re the GFV, am I right in thinking that €10k is the minimum but it could end up being worth more than that?

Say it was worth €12k and we decided to get a new car in 2019 with the same dealer, would the vehicle value be put against a new car, say the new car was €30, would we owe €18k?

Setting up the PCP again would presumably mean the installments on next vehicle would be lower (depending on interest rates etc) than we would be paying on the 2016 model?

Hope the above makes sense!

What is the balloon payment due after 3 years?

sillysocks

Business Cat wrote: »

Hi folks.

Myself and my wife are looking at getting a new car and using PCP but are completely new to it.

We were in a VW dealership today and the below is what was offered.

Vehicle price - €28,388, 1.2 Golf TSI.

Deposit is €2,833

Monthly installments are €430 @ 0% APR.

GFV of €10,000.

Is this a good deal?

In terms of the mileage, my wife will be the main driver, we would anticipate annual mileage would 30k km or less over the three years.

Re the GFV, am I right in thinking that €10k is the minimum but it could end up being worth more than that?

Say it was worth €12k and we decided to get a new car in 2019 with the same dealer, would the vehicle value be put against a new car, say the new car was €30, would we owe €18k?

Setting up the PCP again would presumably mean the installments on next vehicle would be lower (depending on interest rates etc) than we would be paying on the 2016 model?

Hope the above makes sense!

From my understanding you don't have the trade in part right. So at the end the gmv is 10k , and this is what you still owe to the finance company. So you would be guaranteed 10k value, but you still owe 10k so that balances you to zero. So if say car was actually worth 12k, 10k of that goes to paying off the balance of finance and you just have 2k of deposit towards the new car. Hope that makes sense!

Liam McPoyle

Fiskar wrote: »

What is the balloon payment due after 3 years?

Approx €10k.

sillysocks wrote: »

From my understanding you don't have the trade in part right. So at the end the gmv is 10k , and this is what you still owe to the finance company. So you would be guaranteed 10k value, but you still owe 10k so that balances you to zero. So if say car was actually worth 12k, 10k of that goes to paying off the balance of finance and you just have 2k of deposit towards the new car. Hope that makes sense!

Ahh, ok, I misinterpreted it.

So if we were to go on to another finance deal, we would hand back the car, and any residual value over the GFV would serve as the deposit (or part there of)?

Millem

Business cat I got pcp with vw last year, have you told them your annual km? I thought they work it out on a 20,000km per year basis?

sillysocks

Business Cat wrote: »

Approx €10k.



Ahh, ok, I misinterpreted it.

So if we were to go on to another finance deal, we would hand back the car, and any residual value over the GFV would serve as the deposit (or part there of)?

Yep that's it as far as I know!
If you work it out that makes sense too, 430x36 payments only gives you 15k repaid to them so you would still owe the rest before you own the car!

Ryath

Business Cat wrote: »

Approx €10k.



Ahh, ok, I misinterpreted it.

So if we were to go on to another finance deal, we would hand back the car, and any residual value over the GFV would serve as the deposit (or part there of)?

You should at the very least have enough to cover a new deposit maybe more but it all depends on second hand market in three years. Yours will have low mileage so will be worth more. Do you have a lot of extras with that price I got a price of €28300 for the 1.6TDI Highline golf with metalic and I think should have got better that's only about €1400 of list, seen one figure here of someone getting €2000 of a golf with a rrp of €27500.

Millem

Sorry business cat I misread your post. You will only be doing 10,000km per year. I got a great deal last sept. Don't ask me how I managed it, apparently they had 100 secret cars and I got one of them!

At the end of the 3 years you still owe a certain amount but your car is worth more. You have 3 options:
1) refinance the final payment or pay off in cash and keep the car
2) trade in - your car will be really worth more than final payment so you can start pcp again on a 2019. The €2k is the deposit on new car.
3) hand back car and you are quits.

If you chose option 2 apparently you get an even better deal next time

One thing to note is that you have to go to their garage for services

Shop around vw garages. I found frank keane to be the biggest rip off! I bought my car from msl and saved myself thousands also got my old car valued at both, frank keane was offering me more so msl matched it! (Msl were offering me less for my car orginally).

The vw on the northside (karmann) said they would try and match msl. They didn't know anything about secret cars! I luckily had a print out from msl! I never bothered with them in the end as we live southside so msl was handy

mickdw

You are buying with tiny deposit and paying a relatively large monthly.
If you can afford that monthly, you are pretty much set as you will easily have equity in the car at end of term to cover a similar deposit again so you should be able to role into car after car, reducing your monthly if anything.
You are also getting zero per cent finance. All good.
My only issue with that deal is the amount of money you are paying for a golf but that is your choice.

heldel00

Millem wrote: »

Sorry business cat I misread your post. You will only be doing 10,000km per year. I got a great deal last sept. Don't ask me how I managed it, apparently they had 100 secret cars and I got one of them!

At the end of the 3 years you still owe a certain amount but your car is worth more. You have 3 options:
1) refinance the final payment or pay off in cash and keep the car
2) trade in - your car will be really worth more than final payment so you can start pcp again on a 2019. The €2k is the deposit on new car.
3) hand back car and you are quits.

If you chose option 2 apparently you get an even better deal next time

One thing to note is that you have to go to their garage for services

Shop around vw garages. I found frank keane to be the biggest rip off! I bought my car from msl and saved myself thousands also got my old car valued at both, frank keane was offering me more so msl matched it! (Msl were offering me less for my car orginally).

The vw on the northside (karmann) said they would try and match msl. They didn't know anything about secret cars! I luckily had a print out from msl! I never bothered with them in the end as we live southside so msl was handy

Millem you are my idol! You have saved me a fortune over in the newborn and toddler forum but I don't think I'll be following you in this deal!

Millem

heldel00 wrote: »

Millem you are my idol! You have saved me a fortune over in the newborn and toddler forum but I don't think I'll be following you in this deal!

Hahaha Heldel I didn't get same deal or car as above. My "secret" car had about €6k off sale price more if you include the free entertainment pack that all cars got at the time. Don't ask me how these deals find me! All my friends are telling me they want me to go with them to the garage!! I had previously walked out of frank keane disgusted. The one good thing though was they valued my trade in car more than msl

Business cat are you trading in a car? €400ish is an awful lot to have to pay every month for 3 years. Also I presume a golf would be worth a lot more than €12k after 3 years, so you have more than €2k equity.

green_rim

Has anyone had any difficulty in getting PCP? I'm expecting a call today from the dealership to start my application.

sheff the ref

Didn't have a problem but I am only paying €154 a month and had a clean slate

green_rim wrote: »

Has anyone had any difficulty in getting PCP? I'm expecting a call today from the dealership to start my application.

donkey balls

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

Ogogo

donkey balls wrote: »

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

I will start by saying that I am not an expert in this but I will share my understanding of your questions.

I would think that if the price on the window of a pre-loved car is €27,000 and you were buying the car in a straight deal you should probably expect about €1,500 discount on that price.

Your mileage at 6,000 miles a year is somewhat irrelevant, the mileage would only really matter with PCP if it was above 15,000KMS per year as this would have some impact on the notional value of the car after 3 years. If you did have unusually high mileage the net-net of that would be that you would have higher monthly payments and a lower final payment - but the overall amount paid would I believe be the same.

The way the PCP seems to work is an upfront deposit of between 10% and 30%, a final payment of between 30% and 40% and the remainder covered over 36 monthly payments. Many of the manufacturers offer low or no interest PCP deals on new cars but I am not sure what rates they offer on used cars. It can't hurt to ask.

(I do remember seeing an advert recently where Volkswagen Bank were comparing themselves against BOI and AIB and showing themselves to be cheaper on used car financing - but I dont recall the details and it might all have been spin).

By comparison, if you have €10,000 as a deposit you could get a straight car loan over 5 years for the remaining €17,000 and at PTSB that would cost you about €330 PM. http://www.bonkers.ie/compare-loans/

This would leave you to sell your own car for some value but if you expect it worth circa €1,000 you might be best off to try and get the discount on your new car and find a punter at any value for your old car.

Alternatively, if you got a good PCP deal on the A4, you could always pay your deposit now, make your 36 payments and then re-finance the final payment over 2 further years on a personal loan. I dont think the PCP companies would be re-financing that for you.

sillysocks

donkey balls wrote: »

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

Have you checked that you can get PCP on that car? Any of the garages I went to had a limit of about 12/18 months old as to what cars you could get PCP on. It was just normal finance/loans on the older stock.