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PCP car finance questions

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  • 02-03-2016 11:32pm
    #1
    Colash
    Registered Users Posts: 1,377 ✭✭✭


    I know this has been asked a million times on here but could someone explain the ins an outs of this pcp finance . I'm thinking of getting a car on finance but I'd like to know what's the process with this ? I'm currently in full time employment but I've no substantial savings . I'm wondering would I be considered for pcp? I'm thinking of going to my local vw/Audi dealership
    Any help or comments would be appreciated


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    #2
    bazz26
    Registered Users Posts: 51,150 ✭✭✭✭bazz26


    There is an entire thread on this subject, it's pretty much explained in the first few pages:

    http://www.boards.ie/vbulletin/showthread.php?t=2057120240


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    #3
    mickdw
    Registered Users Posts: 23,282 ✭✭✭✭mickdw


    Colash wrote: »
    I know this has been asked a million times on here but could someone explain the ins an outs of this pcp finance . I'm thinking of getting a car on finance but I'd like to know what's the process with this ? I'm currently in full time employment but I've no substantial savings . I'm wondering would I be considered for pcp? I'm thinking of going to my local vw/Audi dealership
    Any help or comments would be appreciated

    You will need between 10 and 30 percent of the cost of the car as a deposit. This can be in cash or in trade in of your old car. If you have that and you have a job and a good credit history, you are good to go.


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    #4
    alan partridge aha
    Registered Users Posts: 3,202 ✭✭✭alan partridge aha


    Skoda are offering 0% on pcp I think


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    #5
    Colash
    Registered Users Posts: 1,377 ✭✭✭Colash


    mickdw wrote: »
    You will need between 10 and 30 percent of the cost of the car as a deposit. This can be in cash or in trade in of your old car. If you have that and you have a job and a good credit history, you are good to go.

    Good credit history ? I was under the impression vw an Audi don't involve banks or credit history ??


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    #6
    Atlantic Dawn
    Registered Users Posts: 81,404 ✭✭✭✭Atlantic Dawn
    M


    Colash wrote: »
    Good credit history ? I was under the impression vw an Audi don't involve banks or credit history ??

    They have their own bank in Germany, Volkswagen Bank.


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    #7
    bazz26
    Registered Users Posts: 51,150 ✭✭✭✭bazz26


    Colash wrote: »
    Good credit history ? I was under the impression vw an Audi don't involve banks or credit history ??

    Surely you didnt think they were going to just hand you a new car without checking you would be able to make the repayments on it?


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    #8
    Colash
    Registered Users Posts: 1,377 ✭✭✭Colash


    bazz26 wrote: »
    Surely you didnt think they were going to just hand you a new car without checking you would be able to make the repayments on it?

    What I meant was I have only ever had one loan before . It was a small amount through the credit union . Therefore I don't really have a credit history as such . If you get me


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    #9
    [Deleted User]
    Posts: 5,917 ✭✭✭ [Deleted User]


    The one thing that put me off PCP was the fact that You don't own the car. At least with a loan you do own the car.
    If it sounds to good to be true it normally is, when buying my car I first asked the sales guy what I could expect to get for the car in three years time and traded it in for a new model and he said he couldn't give me a figure because of different factors. He then tried to get me to go for pcp saying the car would have a guaranteed value in three years, when I pointed out to him that not five minutes before hand he said he couldn't give me a figure for a trade in he just blushed and tried to cover up change the subject.
    Personally I took a look at PCP and it can make sense for some people, but if you do high mileage or god forbid damage the car it would be costly in my opinion.


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    #10
    mickdw
    Registered Users Posts: 23,282 ✭✭✭✭mickdw


    Colash wrote: »
    What I meant was I have only ever had one loan before . It was a small amount through the credit union . Therefore I don't really have a credit history as such . If you get me

    Perhaps I should have said as long as you don't have a bad credit history.
    You have a good credit history as long as you didn't default or make lots of late payments etc


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    #11
    Arkady
    Registered Users Posts: 433 ✭✭Arkady


    DubInMeath wrote: »
    The one thing that put me off PCP was the fact that You don't own the car. At least with a loan you do own the car.

    That's also the same with HP and always has been. The car is effectively yours as long as you keep making the payments. If you get a bank loan, and default, it makes no odds what you own or don't own, you'll still owe the money. Also with a car loan, you can't just hand back the keys after three years if you no longer can make the payments for any reason.
    DubInMeath wrote: »
    If it sounds to good to be true it normally is, when buying my car I first asked the sales guy what I could expect to get for the car in three years time and traded it in for a new model and he said he couldn't give me a figure because of different factors.

    How can he with any real accuracy, as cars depreciate at different rates, there are so many factors, from current reputation for a model, to fashion trends, to supply and demand, to imports, to changes in motor tax. He's not mystic Meg.
    DubInMeath wrote: »
    He then tried to get me to go for pcp saying the car would have a guaranteed value in three years, when I pointed out to him that not five minutes before hand he said he couldn't give me a figure for a trade in he just blushed and tried to cover up change the subject.

    It's called GMFV for a reason, not GFV.
    DubInMeath wrote: »
    Personally I took a look at PCP and it can make sense for some people, but if you do high mileage or god forbid damage the car it would be costly in my opinion.

    True, for people planning high miles, or anyone who likes to treat a car like shyte, it's not for them, and the used value for such cars has always been substantially lower, it's not some new idea introduced with PCP.

    PCP has been very successful, tried and tested, and very popular in the UK since the late 90's. About time it's finally come to Ireland.


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    #12
    wandatowell
    Registered Users Posts: 8,435 ✭✭✭wandatowell


    Arkady wrote: »
    PCP has been very successful, tried and tested, and very popular in the UK since the late 90's. About time it's finally come to Ireland.


    Sister lives in England, majority of her friends use PCP to finance their cars.

    Its hugely successful over there.


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    #13
    mickdw
    Registered Users Posts: 23,282 ✭✭✭✭mickdw


    Arkady wrote: »
    That's the same with HP and always has been. The car is effectively yours as long as you keep making the payments. If you get a bank loan, and default, it makes no odds what you own or don't own, you'll still owe the money. Also with a car loan, you can't just hand back the keys after three years if you no longer can make the payments for any reason.



    How can he with any real accuracy, as cars depreciate at different rates, there are so many factors, from current reputation for a model, to fashion trends, to supply and demand.



    It's called GMFV for a reason, not GFV.



    True, for people planning high miles, or anyone who likes to treat a car like shyte, it's not for them, and the used value for such cars has always been substantially lower, it's not some new idea introduced with PCP.

    PCP has been very successful, tried and tested, and very popular in the UK since the late 90's. About time it's finally come to Ireland.

    There was abit of a push towards this type of finance here a good few years back. I remember many years ago when there was a government scrappage deal in place, the manufacturers at that time brought out balloon payment deals as they realised scrappage customers were going to be low on deposit so the deals were for scrappage figure as deposit, 36 payments and a balloon at the end.


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    #14
    [Deleted User]
    Posts: 5,917 ✭✭✭ [Deleted User]


    Arkady wrote: »
    That's also the same with HP and always has been. The car is effectively yours as long as you keep making the payments. If you get a bank loan, and default, it makes no odds what you own or don't own, you'll still owe the money. Also with a car loan, you can't just hand back the keys after three years if you no longer can make the payments for any reason.



    How can he with any real accuracy, as cars depreciate at different rates, there are so many factors, from current reputation for a model, to fashion trends, to supply and demand, to imports, to changes in motor tax. He's not mystic Meg.



    It's called GMFV for a reason, not GFV.



    True, for people planning high miles, or anyone who likes to treat a car like shyte, it's not for them, and the used value for such cars has always been substantially lower, it's not some new idea introduced with PCP.

    PCP has been very successful, tried and tested, and very popular in the UK since the late 90's. About time it's finally come to Ireland.

    At the time the credit union loan was 25euro a month more than the PCP and I actually owned the car, so no worry about small print, maybe going over the mileage and didn't have to pay a ballon payment in three years time.

    I could also sold the car within six months for more than the value of the loan.

    Am very aware that a number of factors can affect the cars future value, but if they can give such a value (with conditions) under PCP, why not as a question when purchasing without PCP when asking for a potential trade in value against the same model in three years?


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