PCP finance.

Scottie99

Scottie99 wrote: »

Just wait till the new VW EV comes out..:)

What ye mean ?

The E-Golf isn't much better than the leaf, range wise .

valdigre

Correction with my calculations...

Renault PCP is 6.9 percent and HP is 8.9, both 3 years.

Difference in cost of credit is around 50 euro higher for HP...

I presume HP in this case is proper choice, if one intends to keep the car after three years?

Jim Stynes

Was sent this today! Is this as **** as I think it is or is this basically what I am looking at?

I worked you out on a Brand New A180CDI AMG Sport in white with heated seats, upgrade wheels and privacy glass...
The A180 has the same size engine as the A200...
It works out the best value...

This is a deal for now, so get your name on it if its anywhere near to what you can go with.

As promised, I've cut to the chase.
Maybe squeeze a few quid out of me for a deal today!

£5000 deposit from you plus your part exchange (Car valued at £3400)
Payments at £249.49 x 48 months.
Guaranteed Future Value: £10175
12000 miles per year.

What else is included:
FREE SERVICING for three years (which is 3 free services)
GAP insurance for three years
STARGUARD paint and fabric protection (guaranteed for 3 years)

Some deal - super value - the only white AMG Sport we have.

Jim Stynes

Jim Stynes wrote: »

Was sent this today! Is this as **** as I think it is or is this basically what I am looking at?

I worked you out on a Brand New A180CDI AMG Sport in white with heated seats, upgrade wheels and privacy glass...
The A180 has the same size engine as the A200...
It works out the best value...

This is a deal for now, so get your name on it if its anywhere near to what you can go with.

As promised, I've cut to the chase.
Maybe squeeze a few quid out of me for a deal today!

£5000 deposit from you plus your part exchange (Car valued at £3400)
Payments at £249.49 x 48 months.
Guaranteed Future Value: £10175
12000 miles per year.

What else is included:
FREE SERVICING for three years (which is 3 free services)
GAP insurance for three years
STARGUARD paint and fabric protection (guaranteed for 3 years)

Some deal - super value - the only white AMG Sport we have.

With PCP you need to calculate the total cost inc gfv if you intend to buy the car at the end v bank loan etc.

If you don't intend no get rid of it after the 4 years then it will cost 20,400 to drive the car for 4 years or 26 k euros.

If you want to buy it then add the 10,175 to the 20,400 and that's your cost to buy.

I like pcp for the ability to choose your repayments to suit yourself and it means you can leave more money in the bank should you need it, I like the idea of pay as you drive. It won't save you money so if you can't afford the car in the first place the gfv could get you in the end.

However the gfv is designed to make you say to yourself, hey I don't want to pay 10 k balloon, I'd rather keep paying 250 pm for a brand new car. So it can lock you into endless buying new cars, which if you want a new one every 3 years then that's fine. After all that 10 k balloon would go a long way towards paying off a new car.

Pcp also means that your monthly payments are much cheaper than a bank loan, because with a bank loan you pay back the total amount of the car this is why your repayments are much higher through the bank.

The gfv at the end is usually higher to make sure you can hop into a new car with little or no deposit. The garage can sell the old one and still make a profit.

Do your sums, pcp can be a great way to buy new cars. Just remember to calculate your mileage correctly or they will charge you per km over.

Jim Stynes

I was really surprised at how much of a deposit I would have needed! The handing over of the car and paying 5000 is the guts of £9k!
Thats a great post! I think I will wait another while for the price of the A Class to come down if that is the sort of money we are talking!

Spark Plug

How does PCP work if the car you are trading in is worth more than the initial deposit say €23k vs €11k?

Spark Plug

Spark Plug wrote: »

How does PCP work if the car you are trading in is worth more than the initial deposit say €23k vs €11k?

If the Trade in is 23 K then that will mean your monthly payments are a lot lower, if of course the car is paid off ?

micks_address

Deleted User wrote: »

If the Trade in is 23 K then that will mean your monthly payments are a lot lower, if of course the car is paid off ?

You can usually only put a max of 32% on the PCP so if your car is worth 23k and the car you are buying costs say 30k you would pay 10k deposit out of the value of your car and the dealer would give you a cheque back for 13k

PCP is designed really to allow you buy a new car without a large deposit.

+ it has flexibility in the sense it gives you the 3 years to decide if you want to buy the car outright at the end or hop into a new car.

PCP also means your monthly payments are lower because you don't pay back the full amount of the car and you pay less interest.

If you buy outright it's not cheaper unless you can find a lower interest rate.

johnik

Came across this today.…

BMW 420D MSport Gran Coupe €52,759

BMW Financial Select Plan

Optional Deposit or Trade In €15,827

Amount to finance €37,168

36 Monthly Payments €625

Guaranteed Minimum Future Value €22,684

APR 8.9%

45,000kms over 3 years. .06c per Km thereafter

Includes 5 year service plan...max 100,000kms

mickdw

johnik wrote: »

Came across this today.…

BMW 420D MSport Gran Coupe €52,759

BMW Financial Select Plan

Optional Deposit or Trade In €15,827

Amount to finance €37,168

36 Monthly Payments €625

Guaranteed Minimum Future Value €22,684

APR 8.9%

45,000kms over 3 years. .06c per Km thereafter

Includes 5 year service plan...max 100,000kms

Ok so if that car will be worth 38.5k (gtv +similar deposit) at 3 years old, it's an ok deal.
Unfortunately I see it being worth much less than that meaning you won't have a 15k deposit built up in the car again. If in 3 years time you want to get a new bmw, you would either have to come up with a large cash injection or end up with higher monthly payments.

lomb

Youd nearly pay a mortgage off on a 150k house or apartment for that monthly cost. That would be far better being than a shiny 420D that has a ****e engine and will be shiny for all of one day.
Id rather the house tbh and a used 335d or preferably a used M3 petrol.

Drummerboy08

Putting a 10% deposit in seems to be the optimum amount for PCP.

Any more and you'll have to add more money in 3 years time again.

lomb

Jim Stynes wrote: »

Was sent this today! Is this as **** as I think it is or is this basically what I am looking at?

I worked you out on a Brand New A180CDI AMG Sport in white with heated seats, upgrade wheels and privacy glass...
The A180 has the same size engine as the A200...
It works out the best value...

This is a deal for now, so get your name on it if its anywhere near to what you can go with.

As promised, I've cut to the chase.
Maybe squeeze a few quid out of me for a deal today!

£5000 deposit from you plus your part exchange (Car valued at £3400)
Payments at £249.49 x 48 months.
Guaranteed Future Value: £10175
12000 miles per year.

What else is included:
FREE SERVICING for three years (which is 3 free services)
GAP insurance for three years
STARGUARD paint and fabric protection (guaranteed for 3 years)

Some deal - super value - the only white AMG Sport we have.

Those prices are in Stg and are a poor deal. Heres a 535 D for a little more per month and a smaller deposit. The 535D being an upper model of a mid range premium saloon must be what twice the price of an A180 CDI which is a base model of a low range premium car? Also only 2 years as opposed to 4.
http://www.centralukvehicleleasing.co.uk/vehicle/choose_your_lease/61661/bmw/5_series/535d_m_sport_4dr_step_auto.html

mickdw

Drummerboy08 wrote: »

Putting a 10% deposit in seems to be the optimum amount for PCP.

Any more and you'll have to add more money in 3 years time again.

Yes. That would be a more realistic deal, meaning firstly that a similar deposit will be available at year 3 due to equity in the car over the gfv and secondly, that the buyer can Actually afford the car as the monthly figure will be more realistic and a more sustainable figure going forward to further deals.

johnik

johnik wrote: »

Came across this today.…

BMW 420D MSport Gran Coupe €52,759

BMW Financial Select Plan

Optional Deposit or Trade In €15,827

Amount to finance €37,168

36 Monthly Payments €625

Guaranteed Minimum Future Value €22,684

APR 8.9%

45,000kms over 3 years. .06c per Km thereafter

Includes 5 year service plan...max 100,000kms

That's a huge chunk of money to throw down as a deposit. Seriously, you'd want a good chunk of money in the bank so as to have spare cash when you need it. If I had 15 K cash this minute it would go off the mortgage.

I always say that the minimum deposit you can get away with based on the monthly repayments you can afford are what you should do because it's important to have rainy day cash in the bank, and gaining interest even if it is small.

For the deposit on the above car you could buy a 2008 535D 280 HP with 68K miles for 22K ! that's not far off the deposit for the 420 with 180 hp !!!

http://www.carzone.ie/search/BMW/5-Series/535-D-M-/201431225955191/advert?channel=CARS

I sure as hell know what I would do !!!

I would love a 535D but don't think I would like paying a lot more for fuel over the Prius, but if I got permanent where I am now with a 42 mile commute it wouldn't be so bad as if I end back up in Dublin with an 84-100 mile commute !

How much is motor tax on a 535 D such as the one above ?

TitianGerm

[Deleted User] wrote: »

That's a huge chunk of money to throw down as a deposit. Seriously, you'd want a good chunk of money in the bank so as to have spare cash when you need it. If I had 15 K cash this minute it would go off the mortgage.

I always say that the minimum deposit you can get away with based on the monthly repayments you can afford are what you should do because it's important to have rainy day cash in the bank, and gaining interest even if it is small.

For the deposit on the above car you could buy a 2008 535D 280 HP with 68K miles for 22K ! that's not far off the deposit for the 420 with 180 hp !!!

http://www.carzone.ie/search/BMW/5-Series/535-D-M-/201431225955191/advert?channel=CARS

I sure as hell know what I would do !!!

I would love a 535D but don't think I would like paying a lot more for fuel over the Prius, but if I got permanent where I am now with a 42 mile commute it wouldn't be so bad as if I end back up in Dublin with an 84-100 mile commute !

How much is motor tax on a 535 D such as the one above ?

I think the deposit would ideally be a trade in at that amount. For example you had a 11 Mazda 6 valued at 16000. You trade that against the 4 series and make your monthly payments. Hence no initial cash outlay.

emmetkenny

emmetkenny wrote: »

I think the deposit would ideally be a trade in at that amount. For example you had a 11 Mazda 6 valued at 16000. You trade that against the 4 series and make your monthly payments. Hence no initial cash outlay.

That is one thing to do provided you have that value in it and paid off or almost.

TitianGerm

[Deleted User] wrote: »

That is one thing to do provided you have that value in it and paid off or almost.

I only know because my dad was looking to trade in his Mazda 6 against a new 6. He loves the 4 series though after brining one for a test drive a few weeks's ago.

I'll have to mention this PCP offer to him.

emmetkenny

emmetkenny wrote: »

I only know because my dad was looking to trade in his Mazda 6 against a new 6. He loves the 4 series though after brining one for a test drive a few weeks's ago.

I'll have to mention this PCP offer to him.

Ask him why he would have a 420 when he can have a 535D ? for not much more than the deposit 2nd hand !

45K miles is only 15,000 Kms a year and a complete waste of a diesel if you ask me. On the other hand the VRT would make the petrol 4 series a mental price and the motor tax.

It is really a hell of a lot of money to only drive a car 45000 kms. Seriously that's mental.

TitianGerm

[Deleted User] wrote: »

Ask him why he would have a 420 when he can have a 535D ? for not much more than the deposit 2nd hand !

45K miles is only 15,000 Kms a year and a complete waste of a diesel if you ask me. On the other hand the VRT would make the petrol 4 series a mental price and the motor tax.

It is really a hell of a lot of money to only drive a car 45000 kms. Seriously that's mental.

He always buys new cars and loves the shape of the 4 series.
I told him its a mid life crisis car

Doff

Might as well ask here instead of making a new thread.

I was offered this PCP finance on a new Mazda3 GT. I'm not entirely sure what to make of it to be honest. It sounds good for now but 3 years down the line I'm not so sure.

Payment of 450 p/m with a gfv of 10k after 3 years, with a choice of refinancing and buying it for roughly the same price per month but over 2 years. This is accepting my current car as a deposit.

The thing that's really getting me is, the gfv depends on me doing 90k or less kilometers over the 3 years, but on average I'll be doing about 50k a year depending on whether I move closer to work or not, for now its not an issue travelling up and down to Dublin because I work shifts. But they are charging 10c per kilometer over the 90k and that would quickly add up. I suppose typing it out now it doesn't seem like such a good offer. But what would you guys opinion be on this? The finance for no PCP is 750 p/m over 3 years.

Or if you had any advice on what kind of car + payment I should go for, I mainly want diesel, new enough for cheap tax and a lot of comfort + mod cons.

Thanks.

mickdw

Doff wrote: »

Might as well ask here instead of making a new thread.

I was offered this PCP finance on a new Mazda3 GT. I'm not entirely sure what to make of it to be honest. It sounds good for now but 3 years down the line I'm not so sure.

Payment of 450 p/m with a gfv of 10k after 3 years, with a choice of refinancing and buying it for roughly the same price per month but over 2 years. This is accepting my current car as a deposit.

The thing that's really getting me is, the gfv depends on me doing 90k or less kilometers over the 3 years, but on average I'll be doing about 50k a year depending on whether I move closer to work or not, for now its not an issue travelling up and down to Dublin because I work shifts. But they are charging 10c per kilometer over the 90k and that would quickly add up. I suppose typing it out now it doesn't seem like such a good offer. But what would you guys opinion be on this? The finance for no PCP is 750 p/m over 3 years.

Or if you had any advice on what kind of car + payment I should go for, I mainly want diesel, new enough for cheap tax and a lot of comfort + mod cons.

Thanks.

Doing that kind of mileage on a pcp doesn't make sense imo.
You would be far better served buying a 3 year old low mile car through a more traditional finance method.
you want cheap tax, diesel, comfort and gadgets.
I will suggest something.

Doff

mickdw wrote: »

Doing that kind of mileage on a pcp doesn't make sense imo.
You would be far better served buying a 3 year old low mile car through a more traditional finance method.
you want cheap tax, diesel, comfort and gadgets.
I will suggest something.

Perfect thanks, I will eagerly await your response

mickdw

Doff wrote: »

Perfect thanks, I will eagerly await your response

how about a volvo S80. 1.6 to 2.4 diesel option all with reasonable tax from 08 onwards, lots is comfort, lots of gadgets and cheap for what you get. The 2.4 is nice.

going by you're original car choice, you may want something abit more sporty looking.

Doff

mickdw wrote: »

how about a volvo S80. 1.6 to 2.4 diesel option all with reasonable tax from 08 onwards, lots is comfort, lots of gadgets and cheap for what you get. The 2.4 is nice.

going by you're original car choice, you may want something abit more sporty looking.

They are nice, most are around the 18k mark that I've found though.

For reference I was offered the Mazda for 29k, with 6k off if I trade in my car.

micks_address

Doff wrote: »

Perfect thanks, I will eagerly await your response

The km penalty only kicks in if you hand the car back... If you want to keep the car you can pay off the balance or finance it with someone else

I agree that 50 K a year is too much for PCP. You want the car to work for you, not you working for the car.

If I were commuting to Dublin again I'd roughly be doing 20K miles a year which I think is the max you should go on pcp, my idea was if I got an EV then the fuel savings tax maintenance etc would go a long way towards paying off the pcp but at 50K a year it's expensive.

I'd still have excess to pay of about 2K or they will lower the GFV now I'm not entirely sure what happens if you decide to buy outright at the end, because the gfv is what you've to pay which is your balloon, so would the GFV come down and mean you got less gfv to pay, or less balloon at the end ? this is what I think will happen.

An S80 is a bit big and will be hard enough on juice for the 2.4 imo the 1.6 will be too underpowered for a car that size.

If I were to get a diesel I think I would opt for the mazda 6 2.2 160 hp decent power and not mental expensive with starship mileage.

The Mondeo is good value but hard to find one with decent power for a big lump of a car.

The Kia Ceed is actually not a bad car to drive 1.6 115 hp and the diesel is actually pretty damn smooth and really impressed me, it's chain cam and afaik no dmf. So should be very reliable,

50 K a year is a lot if you do shift ? usually you work 3 days off 3 5 days off week ?

Doff

Thanks for the replies!

Deleted User wrote: »

I agree that 50 K a year is too much for PCP. You want the car to work for you, not you working for the car.

If I were commuting to Dublin again I'd roughly be doing 20K miles a year which I think is the max you should go on pcp, my idea was if I got an EV then the fuel savings tax maintenance etc would go a long way towards paying off the pcp but at 50K a year it's expensive.

I'd still have excess to pay of about 2K or they will lower the GFV now I'm not entirely sure what happens if you decide to buy outright at the end, because the gfv is what you've to pay which is your balloon, so would the GFV come down and mean you got less gfv to pay, or less balloon at the end ? this is what I think will happen.

An S80 is a bit big and will be hard enough on juice for the 2.4 imo the 1.6 will be too underpowered for a car that size.

If I were to get a diesel I think I would opt for the mazda 6 2.2 160 hp decent power and not mental expensive with starship mileage.

The Mondeo is good value but hard to find one with decent power for a big lump of a car.

The Kia Ceed is actually not a bad car to drive 1.6 115 hp and the diesel is actually pretty damn smooth and really impressed me, it's chain cam and afaik no dmf. So should be very reliable,

50 K a year is a lot if you do shift ? usually you work 3 days off 3 5 days off week ?

I'm working 2 on 2 off, 3 on 3 off, on average 15 days a month at 250km per day (125km each way).

If I was to go over the 90k limit by about 40k and ended up owing 4k, would that just be reduced from the gfv or would it be another expense I would have to pay?

My goal is to move closer to work, but the other half isn't so keen

Thanks again everyone