Skoda PCP Finance Plan...sounds good?? Or not??

Masala

From the Skoda site.....



Personal Contract Plans designed around you

Solutions is a flexible personal contract plan (PCP), which could help to give you more car for your money.

Whether you want to drive the latest model or change your car to suit your circumstances, SKODA Finance can help. Solutions puts you in the driving seat. You can pay a smaller deposit (as little as one repayment) and defer a proportion of the cars value until the end of the agreement helping you lower your repayments when compared to hire purchase.

Designed around both you and your budget, solutions works to your preferred repayments over your agreed term, anything from eighteen months to three and half years.


How does solutions work?


​Step 1 - Agree a repayment period and estimate your annual mileage
Step 2 - Set a deferred amount to the end of the agreement (the optional final payment) to make your repayments lower
Step 3 - Pay a deposit made up of part exchange or cash – as little as one repayment (in advance)
Step 4 - At the end of your repayment term you have three choices*:

• Pay off the optional final payment so you own the car
• Return the car to us and pay nothing more (subject to terms and conditions)
• Part-exchange the car for a brand new ŠKODA on a new solutions contract

So.. what should we watch out for????

ofcork

There have been threads on this, low repayments are only headline grabbers as you showed with the 3 options you either pay off a fairly large sum,hand back after paying out 10 or 15k or start all over again.I saw a bmw 318d on a paper yesterday for only 385pm,reading the small print pay down 12k and a final payout of 18k.

mickdw

The main thing is that you should try to work out how much equity you would have in the car at year 3. This will be any likely value over the guaranteed future value that skoda are offering as this will be your deposit on the next car.
If for example you are going in now with a large deposit (a car you own that you are trading in for example) and this makes the monthly payments affordable, if you cannot produce another similar deposit in 3 years, the next car will not be affordable. On the other hand, if you are now going in with only a reasonable amount of deposit and you can still afford the monthly payment, well it more likely that you can afford the car.

Odyssey 2005

Skoda are doing finance ay 3.9% at the moment on a 48 months hp loan. Much better than pcp finance. Prob cost a few quid extra per month and will be 12 months extra but you will own the car. 3.9% is nearly morguage rate.

The Dagda

Seat have 0% finance and free extras at the minute. Better looking cars too...