PCP finance.

L-M

Depreciation is worst in year one, then year two and finally year three. Usually (Especially with High spec stuff, ie you’ve a 2.0 DSG versus probably every other 1.6 Ambition) you’re better off waiting at least 2 years, and the closer you get to 3 the better your equity should get.

You should keep in touch with your dealer nearly every month or two, keep them in the loop you’re looking to change Incase a special offer/0 percent finance etc comes out.

Also as stated you’re not tied to Skoda, (Although probably will get the best deal from them) but you can shop around

micks_address

Cheers folks,

Yeah i was hoping to look at a 150 bhp petrol auto sportline superb next summer and see how it goes. Obviously the 0% helps massively in terms of current payment.. year 1 or 2 changes while on pcp seem near impossible.. i priced a few options last year and this and it seems like its just not viable..

trickybicky

Wondering if anyone can give me a view on this.

I have a 171 VW Tiguan Highline 2.0 TDI Manual with 25,000km
PCP deal is up in Jan 2020
Balloon payment is €15,000
Trade in offered €23,000 – is this a good offer?

I am looking to move to a new car on PCP.
New Car:
201 VW Tiguan RLine 1.5TSI DSG
Price of Car (with extras) €43,500
0% Finance
Dealer contribution €1,500

They are offering me 23,000 for my current car which leaves equity of 8k.

They are saying the cost price for the car in January is the current price + inflation of around 1% - is this typically what they do? He said he has one ordered now which I could take at a lower price but it’s a 192

They said the cost also includes an insurance policy to guarantee the value of the car if written off/robbed and also fabric and scratch protection cover that they insist I have to take out. Is this right? The costs of the policies are around €750. When I challenged him on this he said it’s the reason they offer a dealer contribution to go against this.

Almost 20% deposit funded by equity in your current car......... sounds like PCP at it's best if you were happy paying €xxx/month all along after whatever deposit you ponied up for the existing yoke.

Cyrus

just be careful that the tiguan wont be a current model when you come out of your new deal, if thats the case you could get clobbered on that trade in.

bazz26

And there is a facelift Tiguan model due in early 2020 similar to the recent Passat.

Casati

trickybicky wrote: »

Wondering if anyone can give me a view on this.

I have a 171 VW Tiguan Highline 2.0 TDI Manual with 25,000km
PCP deal is up in Jan 2020
Balloon payment is €15,000
Trade in offered €23,000 – is this a good offer?

I am looking to move to a new car on PCP.
New Car:
201 VW Tiguan RLine 1.5TSI DSG
Price of Car (with extras) €43,500
0% Finance
Dealer contribution €1,500

They are offering me 23,000 for my current car which leaves equity of 8k.

They are saying the cost price for the car in January is the current price + inflation of around 1% - is this typically what they do? He said he has one ordered now which I could take at a lower price but it’s a 192

They said the cost also includes an insurance policy to guarantee the value of the car if written off/robbed and also fabric and scratch protection cover that they insist I have to take out. Is this right? The costs of the policies are around €750. When I challenged him on this he said it’s the reason they offer a dealer contribution to go against this.

Seems like a good deal bar that 750 quid policy which is a waste of money. Take that out and you will have almost 10 deposit in the new car. As others have said a facelift is due but probably nothing major

trickybicky

Thanks for the feedback.

I was googling the Tiguan Facelift and from what I can tell it will be 2021 and from the pictures no major changes. The new Tiguan looks like it will be out in 2022 so would take a hit in 2023 if I change again.

Not much I can really do about it unless I look at a different car but I am happy with the current Tiguan.

In relation to trade in price of €23k, from looking at their website they are selling the same 171 cars for €32k - seems a big drop to €23k but he explained this by saying he has to give a 3 yr warranty, service car, clean it etc.

I will challenge him again on the €750 policy - doesn't make sense to me that they can force this on you, felt like an upsell to me.

Always walk away from these sales guys feeling like I have been robbed!

bazz26

It makes no sense to facelift a car and then replace it entirely with a new model a year later. The current Tiguan has been around since 2016 so will get a facelift early next year to keep it fresh until an all new model arrives in 2022/2023. If the facelift doesn't bother you then the when the facelift arrives doesn't matter but it is true that it either pre facelift or facelift will be the old model when your new PCP deal finishes in 2023. This will have an impact on your equity so should be taken into account.

micks_address

If you don't mind me asking... are you having to put extra cash into the deal to keep your monthly payment same as what you are on?

trickybicky wrote: »

Thanks for the feedback.

I was googling the Tiguan Facelift and from what I can tell it will be 2021 and from the pictures no major changes. The new Tiguan looks like it will be out in 2022 so would take a hit in 2023 if I change again.

Not much I can really do about it unless I look at a different car but I am happy with the current Tiguan.

In relation to trade in price of €23k, from looking at their website they are selling the same 171 cars for €32k - seems a big drop to €23k but he explained this by saying he has to give a 3 yr warranty, service car, clean it etc.

I will challenge him again on the €750 policy - doesn't make sense to me that they can force this on you, felt like an upsell to me.

Always walk away from these sales guys feeling like I have been robbed!

trickybicky

micks_address wrote: »

If you don't mind me asking... are you having to put extra cash into the deal to keep your monthly payment same as what you are on?

Repayments will be less this time. My last deal was a 1.9% PCP rate and I didn't have as large a deposit the last time.

Lantus

I agree on insurance. Is it for 3 years or just 1?

They pull the same trick on servicing. I challenged this as was more expensive than their buy 3 get 1 free offer and was offered a 4th service free.

Don't like the you must buy it sell.

Likeabossboss

Got a good deal in the states on a new 2ltr Civic, 1240 up front and 225 a month with 12000 miles a year for three years. Do feck all mileage here so think I got a good deal anyway

ShadowHearth

Likeabossboss wrote: »

Got a good deal in the states on a new 2ltr Civic, 1240 up front and 225 a month with 12000 miles a year for three years. Do feck all mileage here so think I got a good deal anyway

I presume it's leasing? Very popular there, but it's non existent for private sector here.

CoBo55

Likeabossboss wrote: »

Got a good deal in the states on a new 2ltr Civic, 1240 up front and 225 a month with 12000 miles a year for three years. Do feck all mileage here so think I got a good deal anyway

What happens when the 3 years are finished? Do you have the option to buy, renew etc?

Likeabossboss

Yea it’s three year lease, have the option to buy at the end, think it’s 10750 but think I’ll just go again and get a new one to be honest.

Suits me down to the ground paying that much a month and the up front fee.

If it was paying the 7 or 8K back in Ireland Up front I wouldn’t bother with leasing

L-M

trickybicky wrote: »

Wondering if anyone can give me a view on this.

I have a 171 VW Tiguan Highline 2.0 TDI Manual with 25,000km
PCP deal is up in Jan 2020
Balloon payment is €15,000
Trade in offered €23,000 – is this a good offer?

I am looking to move to a new car on PCP.
New Car:
201 VW Tiguan RLine 1.5TSI DSG
Price of Car (with extras) €43,500
0% Finance
Dealer contribution €1,500

They are offering me 23,000 for my current car which leaves equity of 8k.

They are saying the cost price for the car in January is the current price + inflation of around 1% - is this typically what they do? He said he has one ordered now which I could take at a lower price but it’s a 192

They said the cost also includes an insurance policy to guarantee the value of the car if written off/robbed and also fabric and scratch protection cover that they insist I have to take out. Is this right? The costs of the policies are around €750. When I challenged him on this he said it’s the reason they offer a dealer contribution to go against this.

23 sounds very weak with that mileage also 750 for that insurance product is a pure rob.

Price around.

skodacb

micks_address wrote: »

Hi folks,
My pcp is up next year. I've a high spec skoda Octavia auto, Diesel, 150bhp, sportline etc. 172 d, I suspect I won't have a huge amount of equity to play with come next year when changing. After the three years lump sum will be about 12.7k.. the car new cost 35.5k, 0 percent finance.

I'm half wondering if handing back the car would be a crazy option? If I'm offered 3k equity.. to buy a similar priced car I'll probably have to put 5 or 6k into the deal myself to buy same again. I've already got a few prices and have been offered as low as 15k this year.. 53k km on the car.. I got 16k for my 3 year old Civic when buying the Octavia.. maybe I'm underestimating the trade in value I'll be offered next year. If I'm offered 18k might be workable but is that realistic?

Other option is to finance the balance and keep the car. Very happy with it so don't want to change for something and have to pay a lot to stay in similar for the sake of a new car..

Cheers,
Mick

I'd keep it personally, by the time your PCP is up the new model Octavia will be on Irish shores, which will probably lessen your cars value.

I was thinking long and hard about my 171 Octavia(vRS) too as its PCP is drawing to a close soon, which are going for nearly €25,000 used, I'd be doing very well to get €7k equity after the balloon payment of €13,400.

I've decided to go with the CU and be done with it. I was inkling towards a Superb Sportsline but the RS has all I need in it.

Payments will work out at about €260/month over a 5 year loan compared to the €430 I'm currently spending per month, there's only 22,000 miles on the clock, I think I'd be foolish to hand it back to the dealer.

L-M

skodacb wrote: »

I'd keep it personally, by the time your PCP is up the new model Octavia will be on Irish shores, which will probably lessen your cars value.

I was thinking long and hard about my 171 Octavia(vRS) too as its PCP is drawing to a close soon, which are going for nearly €25,000 used, I'd be doing very well to get €7k equity after the balloon payment of €13,400.

I've decided to go with the CU and be done with it. I was inkling towards a Superb Sportsline but the RS has all I need in it.

Payments will work out at about €260/month over a 5 year loan compared to the €430 I'm currently spending per month, there's only 22,000 miles on the clock, I think I'd be foolish to hand it back to the dealer.

You know Skoda will offer a far better rate than the CU to refinance it and without a deposit. Albeit over 3 more years but you’d be far better off than going with the CU, would be a huge saving. Putting it over a further 5 years is a terrible idea

Lantus

trickybicky wrote: »

Thanks for the feedback.

I was googling the Tiguan Facelift and from what I can tell it will be 2021 and from the pictures no major changes. The new Tiguan looks like it will be out in 2022 so would take a hit in 2023 if I change again.

Not much I can really do about it unless I look at a different car but I am happy with the current Tiguan.

In relation to trade in price of €23k, from looking at their website they are selling the same 171 cars for €32k - seems a big drop to €23k but he explained this by saying he has to give a 3 yr warranty, service car, clean it etc.

I will challenge him again on the €750 policy - doesn't make sense to me that they can force this on you, felt like an upsell to me.

Always walk away from these sales guys feeling like I have been robbed!

The 2016 is a better guide on price as the dealer will be selling your car 3 years old come next year. A good hl model is 27k. Even taking a mid point between your 32 and this 29.5k.

So 6.5k profit by dealer if you get 23k which doesn't seem so bad. They have kids to feed as well....

hooch-85

Limerick man wrote: »

You know Skoda will offer a far better rate than the CU to refinance it and without a deposit. Albeit over 3 more years but you’d be far better off than going with the CU, would be a huge saving. Putting it over a further 5 years is a terrible idea

Tend to agree, I bought a 3 year old car last year on a 5 year HP and I regret not going for a shorter term really, I probably could have afforded it. Paying for a car over 8 years seems like madness but you'll be in the same position really as me, we'll both have an 8 year old car.

Likeabossboss

Likeabossboss wrote: »

Got a good deal in the states on a new 2ltr Civic, 1240 up front and 225 a month with 12000 miles a year for three years. Do feck all mileage here so think I got a good deal anyway

Likeabossboss wrote: »

Yea it’s three year lease, have the option to buy at the end, think it’s 10750 but think I’ll just go again and get a new one to be honest............

Interesting how they structure the first 3 years at 45% of the total and the balloon/buy price is the 55%. Great how it's effectively pay as you use.
And they're still making money on it too of course.
Shows how cheap cars actually are in some places.
A 2.0 Civic is a fine car for that money.

Lantus

Augeo wrote: »

Interesting how they structure the first 3 years at 45% of the total and the balloon/buy price is the 55%. Great how it's effectively pay as you use.
And they're still making money on it too of course.
Shows how cheap cars actually are in some places.
A 2.0 Civic is a fine car for that money.

Generally better to pay off more in first 3 years. It protects against car inflation, falling values and better ensures equity left in car. Vw is 50 to 55 last time I checked. Leaf is much more. Brands like BMW which paid off less in first 3 years ran into trouble with returning customers having zero equity. Not a good position to be in as a customer.

Cyrus

Lantus wrote: »

Augeo wrote: »

Interesting how they structure the first 3 years at 45% of the total and the balloon/buy price is the 55%. Great how it's effectively pay as you use.
And they're still making money on it too of course.
Shows how cheap cars actually are in some places.
A 2.0 Civic is a fine car for that money.[/quote

Generally better to pay off more in first 3 years. It protects against car inflation, falling values and better ensures equity left in car. Vw is 50 to 55 last time I checked. Leaf is much more. Brands like BMW which paid off less in first 3 years ran into trouble with returning customers having zero equity. Not a good position to be in as a customer.

the american example given is basically a lease though, you pay the upfront and pay the monthly and buy at the end or hand back, theres no equity.

sillysocks

hooch-85 wrote: »

Tend to agree, I bought a 3 year old car last year on a 5 year HP and I regret not going for a shorter term really, I probably could have afforded it. Paying for a car over 8 years seems like madness but you'll be in the same position really as me, we'll both have an 8 year old car.

Not necessarily, we refinanced for 5 years at the end of the pcp (pcp finance company did offer 5 when we asked). We wanted to reduce payments as we needed to change our second car and it just gave us a bit more wriggle room. We may pay off early, and will probably change the car beforethe 8 years are up anyway.
Just because you finance for 8 doesn’t mean you have to keep it for 8.

Lantus

Lantus wrote: »

..........

Generally better to pay off more in first 3 years. It protects against car inflation, falling values and better ensures equity left in car. Vw is 50 to 55 last time I checked. Leaf is much more. Brands like BMW which paid off less in first 3 years ran into trouble with returning customers having zero equity. Not a good position to be in as a customer.

It's a grand position if you just want a new car on a pay as you use basis, agreed up front. 3 years use for 45% of the new price.

Equity is grand conceptually but not if you want to just lease the thing and the deposit is tiny.

Cyrus wrote: »

the american example given is basically a lease though, you pay the upfront and pay the monthly and buy at the end or hand back, theres no equity.

I know

Augeo wrote: »

............. Great how it's effectively pay as you use. ...........

hooch-85

sillysocks wrote: »

Not necessarily, we refinanced for 5 years at the end of the pcp (pcp finance company did offer 5 when we asked). We wanted to reduce payments as we needed to change our second car and it just gave us a bit more wriggle room. We may pay off early, and will probably change the car beforethe 8 years are up anyway.
Just because you finance for 8 doesn’t mean you have to keep it for 8.

That's true I know, it all depends on everyone's circumstances. In my own i will probably keep to end of term and drive it until it stops, my wife has a 181 car on PCP which we will change in 2021 alright.

Cyrus

Augeo wrote: »

I know

sorry the quote was messed up i was responding to lantus

carsfan2

@Cyrus,
Did you go for the pcp deal you were thinking about recently on your own two year old?
Seemed like it was a fair deal if I remember correctly?

Cyrus

carsfan2 wrote: »

@Cyrus,
Did you go for the pcp deal you were thinking about recently on your own two year old?
Seemed like it was a fair deal if I remember correctly?

yes it was but ultimately decided against it, want something bigger so ill see what a one year old GLE will run me next year, the new model is lovely