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car finance packages

  • 17-01-2016 6:20pm
    #1
    strandsman
    Registered Users, Registered Users 2 Posts: 393 ✭✭


    Hi all
    Wife is thinking of changing her 10 yr old car, I was looking through the car finance packages (ford,VW) and I'm thinking wheres the catch? We have always got a bank loan or credit union loan etc but the idea of changing the car after 3 yrs with GMFV is tempting. any thoughts would be welcome


Comments

  • #2
    newacc2015
    Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    strandsman wrote: »
    Hi all
    Wife is thinking of changing her 10 yr old car, I was looking through the car finance packages (ford,VW) and I'm thinking wheres the catch? We have always got a bank loan or credit union loan etc but the idea of changing the car after 3 yrs with GMFV is tempting. any thoughts would be welcome

    AFAIK the car manufacturer is assuming you will end up in a never ending cycle of replacing the car every 3 years, since a lot of car financing is hire purchase. I dont know about Europe, but in the US most of the money in the car industry is made in the financing/leasing of the cars.

    Interest rates are so low at moment, that car makers can afford to sell cars on 3.9% finance. You can actually get credit union loans in the US at 2%. So rates of 3.9% isnt that cheap.


  • #3
    sleepyholland
    Registered Users, Registered Users 2 Posts: 343 ✭✭sleepyholland


    Skoda and Citroen are currently offering 0% finance on certain models - not just high-end ones either. Think it applies to the Octavia and the C4.


  • #4
    bennyob
    Registered Users, Registered Users 2 Posts: 698 ✭✭✭bennyob


    sleepyholland wrote: »
    Skoda and Citroen are currently offering 0% finance on certain models - not just high-end ones either. Think it applies to the Octavia and the C4.

    So are Seat.


  • #5
    strandsman
    Registered Users, Registered Users 2 Posts: 393 ✭✭strandsman


    ya but is there a catch? Are we at the dealers mercy when it comes to returning the car after 3 yrs for a replacement when it comes to GMFV


  • #6
    Nonoperational
    Registered Users, Registered Users 2 Posts: 7,401 ✭✭✭Nonoperational


    Well you could always sell the car privately and pay them the GMFV


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  • #7
    vistaphotos
    Registered Users, Registered Users 2 Posts: 160 ✭✭vistaphotos


    newacc2015 wrote: »
    Interest rates are so low at moment, that car makers can afford to sell cars on 3.9% finance. You can actually get credit union loans in the US at 2%. So rates of 3.9% isnt that cheap.

    - Unfortunately I don't live in the US :) of course it is the case that manufacturers are making money on the finance. I was going to say that the lowest PCP rate I heard of was 1.9% from VW since the 0% from Skoda & Kia (Ce'ed only by the looks of it) are for hire purchase, but the 0% deal from Citroen is for PCP.
    - Good discussion on this topic previously at http://www.boards.ie/vbulletin/showthread.php?t=2057528366


  • #8
    sleepyholland
    Registered Users, Registered Users 2 Posts: 343 ✭✭sleepyholland


    vistaphotos wrote: »
    - I was going to say that the lowest PCP rate I heard of was 1.9% from VW since the 0% from Skoda & Kia (Ce'ed only by the looks of it) are for hire purchase

    Looks like Skoda is currently 0% for PCP too. According to their website, but I can't guarantee that's correct.
    http://www.skoda.ie/finance/finance-calculator/


  • #9
    vistaphotos
    Registered Users, Registered Users 2 Posts: 160 ✭✭vistaphotos


    sleepyholland wrote: »
    Looks like Skoda is currently 0% for PCP too. According to their website, but I can't guarantee that's correct.
    http://www.skoda.ie/finance/finance-calculator/

    Yes, I stand corrected. I was reading the small print at the bottom of the front page where they kept mentioning "hire purchase" with no mention of PCP, best to check with a dealer I guess. http://www.skoda.ie/finance/finance-offers/ lists all the cars, mentions PCP and shows 0% for most, but not all models. All brands are pushing so many, scrappage, finance and other offers at the moment it's hard to keep track.


  • #10
    goz83
    Registered Users, Registered Users 2 Posts: 8,035 ✭✭✭goz83


    0% finance on a portion of the payment. This does not include the deposit and the balloon payment after 3 years (skoda example)


  • #11
    MarkN
    Registered Users, Registered Users 2 Posts: 4,323 ✭✭✭MarkN


    Your question comes up a lot on here. Many also ask what's the catch. HP, PCP, lease, finance, car loan, credit union... Call it what you want, you're asking someone to lend you money to buy a car!!

    We seem to be a nation or cautious souls 'but shure how is he getting one over on me' ;)

    It's a loan, at a low rate, to get a new car. If you want to get a car with truly zero catches, save up the money until you can buy the car outright.

    To me, PCP seems like a fairly good deal. Yeh, you're tied in, yeh, there's ways out of being tied in. You can be fairly certain that you won't get lower rate credit though :)


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