PCP finance.

Heard a pcp type add in the UK over the weekend.....toyota hilux 200/mnth for 4 years.... 10k deposit and 12k balloon payment iirc. 0% Apr.

CoBo55

Augeo wrote: »

Heard a pcp type add in the UK over the weekend.....toyota hilux 200/mnth for 4 years.... 10k deposit and 12k balloon payment iirc. 0% Apr.

Very strict tiny mileage restrictions on a lot of those deals.

younggalway

bazz26 wrote: »

Weren't you trying to sell the Leon due to travelling aboard in another thread recently? Either way it's going to cost you plenty.

Yeah I'm still trying to sell it. Planning to move next year anyway, was just more curious than anything. To be honest, the inside of the Golf is so similar to my own car I don't think it would be worth the extra even if I was staying.
At this rate I still haven't had a single call on mine so I'd say I'll be holding onto it until I go this time next year and just hoping I break even to clear the balance on it.

bazz26

younggalway wrote: »

Yeah I'm still trying to sell it. Planning to move next year anyway, was just more curious than anything. To be honest, the inside of the Golf is so similar to my own car I don't think it would be worth the extra even if I was staying.
At this rate I still haven't had a single call on mine so I'd say I'll be holding onto it until I go this time next year and just hoping I break even to clear the balance on it.

I wouldn't be buying a run out model Golf if your plan is to part with it and move abroad next year. You will be in just as bad position as you are now regarding trying to sell such a new car and it being the old model too.

Regarding your current car, your problem is that most people want to avail of finance to be spending 20k on a car, this is something you cannot offer. Seat are also doing very good finance rates on a brand new Leon for 2020 because like the Golf it's being replaced with a new model next year too.

Wildly Boaring

You talk to your garage about buying it off you?

I know of one girl who Toyota did it for, worked out OK. Her parents have had about 40 toyotas though.

jimbobmalones

Any good deals on PCP finance for the new year?

sheff the ref

Any deals on Electric or Hybrid on PCP?

L-M

sheff the ref wrote: »

Any deals on Electric or Hybrid on PCP?

You’ll get an E Golf Executice now for 34k after grants and 0 percent APR PCP

ctlsleh

am i better of with a higher or lower GMFV? i guess higher means less equity, but less interest for the 3 year period, lower means more interest paid, lower balloon.

with a lower interest rate im better to have a lower GMFV, with a higher interest rate i'm better to have a higher GMFV........

i dont do high mileage, probably about 12-15K KMs per year

Anything else to consider?

Mooooo

Unless it's 0% interest the interest calculated is including the gfmv?

ddarcy

ctlsleh wrote: »

am i better of with a higher or lower GMFV? i guess higher means less equity, but less interest for the 3 year period, lower means more interest paid, lower balloon.

with a lower interest rate im better to have a lower GMFV, with a higher interest rate i'm better to have a higher GMFV........

i dont do high mileage, probably about 12-15K KMs per year

Anything else to consider?

Most assume that you do 15k per year. I’m not sure what your getting but the likes of Toyota and Hyundai will show you the figures for higher mileage (thus lower gmfv). If you are looking at something with 0% interest I’d try to get the lower gmfv if you intend to keep the car. But I guess is what do you plan to do with it?

ctlsleh

Mooooo wrote: »

Unless it's 0% interest the interest calculated is including the gfmv?

OK, thanks for that. so in the context of the repayments the GMFV is irrelevant. and therefore if im looking to keep the car i should be looking for a lower GMFV and if im looking to trade it again, then i shoul be looking for a higher GMFV, right?
but whether its higher or lower now wont affect my repayments at all.

bazz26

You need to calculate how much the car is costing you in total - deposit, interest, monthly repayments and final balloon payment. There will be various figures thrown at you, some to make deals appear attractive and most people just focus on the monthly repayments and don't look at how much the car is costing them overall.

ctlsleh

ddarcy wrote: »

Most assume that you do 15k per year. I’m not sure what your getting but the likes of Toyota and Hyundai will show you the figures for higher mileage (thus lower gmfv). If you are looking at something with 0% interest I’d try to get the lower gmfv if you intend to keep the car. But I guess is what do you plan to do with it?

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

ddarcy

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

If you’re going through a dealer see what hire purchase address they have. I think VW bank could give you a better rate (think it’s 3.9, but you’d have to get it checked). I’m sure they would have connections to a few anyways. I would avoid PCP for a used car

bazz26

The GMFV is how much you still owe at the end of year 3. You need to have a lower GMFV if you want to buy the car outright or trade it in for another PCP deal. The difference between the car's trade in value and the GMFV is how much equity you have in the car to use as a deposit for the next car. If you have a higher GMFV then you have less equity.

bazz26

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

How old is the car now?

Wildly Boaring

At 3 years you gonna buy with cash or finance the lump?

ShadowHearth

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

Does Merc give PCP on used cars now too? Is it directly with Mercedes or independent garage?

ctlsleh

bazz26 wrote: »

How old is the car now?

it a 191 from a Merc dealer, not sure if its Merc or a deal with the bank that they are proposing. HP is same rate.
i havent decided if ill pay cash or just get a loan at the end to cover the GMFV.

If i go HP, whats the benefit other than owning it?

Wildly Boaring

You pay interest on remaining balance.
So if refinancing better with smaller lump.
Quicker you are reducing capital less interest you'll pay.

If using cash to clear you'll have to work out.
There should be a tipping point
If you keep lump high you'll pay no interest on lump but you'll be paying more interest until then as you're capital reducing slowly.


In general a low gmfv is better
Less interest and more equity in the vehicle at end of 3 years if you wanna sell or trade

bazz26

HP is probably over a longer term but you owe nothing at the end of the term, the car is yours. PCP is over 3 years max and you still owe a lump sum at the end of that or you trade in for another car or hand it back and walk away with nothing.

PCP could work if you were going to refinance the lump sum but nobody knows what interest rates will be like in 3 years time so its a tough call to make. You will also refinancing a car that will be 4 years old at that stage, again that might suit you.

Lantus

If your paying via pcp then interest is usually a little lower if you can max out the deposit. Not an issue if your intending to keep. Get some comparative quotes. The gmfv isn't very movable as the dealer will set this. Adjusted by mileage usually. You cannot request a higher or lower gmfv unless someone done has done this!?!

With a maxed deposit and low monthly you should commence saving as much as affordable to help pay off gmfv. If you cannot afford to save on 30% deposit then query affordability.

micks_address

Avantcard are doing loans over 20k over 7 years at 6 percent..might be as attractive as Mercedes pcp

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

ShadowHearth

I personally like PCP way more then HP even if you want to buy it out.
With PCP you have that lump in the end, yes. But you do have smaller payments, which let's you put away a bit in to separate savings account. In 3 years time you can use saved to pay off balloon or partially pay off and refinance the rest or if you decide to change, you will have some money saved up to add to deposit already. With HP you will be locked in for 5 ( or 4 ) years and if you will want to change in 3 years, you will need to pay off car fully. With pcp you can change anytime.
I know saved up money is still going to be spent to cover car, but I prefer flexibility of having that money on me in case of emergency and you can always refinance balloon.

Lantus

micks_address wrote: »

Avantcard are doing loans over 20k over 7 years at 6 percent..might be as attractive as Mercedes pcp

Best of luck finding a car dealership that will take credit card.....

ShadowHearth

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

CIP4

ShadowHearth wrote: »

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

Yes any VAG main dealer will be able to see the settlement figure. The garage you bought it off has nothing to do with it anyway as you borrowed the money from VW bank not the dealer anyway.

ShadowHearth

CIP4 wrote: »

Yes any VAG main dealer will be able to see the settlement figure. The garage you bought it off has nothing to do with it anyway as you borrowed the money from VW bank not the dealer anyway.

Ty. I knew the part about dealer and VW bank, was just wondering if different VW brands could access other dealers finance info.

Rusky rusky

ShadowHearth wrote: »

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

You can also get the final settlement directly from VW bank. Dealer doesn’t know the figure until they request from the bank themselves