PCP refinancing - anyone gone through this process?

ohhello

I'm trying to get my ducks in a row before I contact VW Bank.

I'm currently on a PCP ending in May this year.
When I originally took out the PCP contract I had planned on cycling cars every 3 years. Suited my needs at the time. And probably still would.

BUT

The value dealers are putting on the car is borderline ridiculous. Way off what was suggested at the start and way off what I had thought it might have been myself.

As it stands it makes zero financial sense to change.
I'll be keeping the car, so I need to sort financing for the balloon payment.

Has anyone on here refinanced a PCP deal at the end of the term? What type of interest rates were you being offered?

If interest rates are close to what they currently charge. Using VW Bank would work out
cheaper than more traditional finance routes (credit union etc.).

Anyway - If anyone has been through this process it would be great to know the ins and outs?

I'd prefer having a rough idea of what I'm in for before making the call!

Thanks!

bazz26

Unless you are going PCP again then you your choices will be regular loan or finance to pay off the balloon payment. It will be a personal loan so interest rates will depend on whether you go to a bank, credit union, etc.

ShadowHearth

Dealer will offer to refinance it. Vw bank will have 5.9% apr and minimum to refinance 5k. It will be the best apr you will get as bank and credit union apr will be around 9%+.
What you can do is put your own few grand and refinance the rest with dealer. You have time now to start putting away few quid for that.

Danbo!

Out of interest, whats the car and value? Mine is up in April and am on the fence between new car or pay off balloon payment.

MarkN

From BOI website:

Key Features
Variable rates from 6.8% APR

Amounts from €1,000 - €65,000

https://personalbanking.bankofireland.com/borrow/loans/personal-loan/features-benefits/

ShadowHearth

MarkN wrote: »

From BOI website:

Key Features
Variable rates from 6.8% APR

Amounts from €1,000 - €65,000

https://personalbanking.bankofireland.com/borrow/loans/personal-loan/features-benefits/

6.8 for a bank is fantastic, but their calculator puts higher apr then that. Unless its just not updated or they have very specific terms or you need to borrow over 20k to get that apr.

aerofoiled

MarkN wrote: »

From BOI website:

Key Features
Variable rates from 6.8% APR

Amounts from €1,000 - €65,000

https://personalbanking.bankofireland.com/borrow/loans/personal-loan/features-benefits/

Threshold is €20,000 to get 6.8%, 7.5% for anything below.

Casati

I looked into refinance my Skoda at the end of the PCP and was quoted 5.9 apr. the payments could be made over another three years and were roughly at the same level as my PCP payments.

If your not happy with the trade in value and like the car it’s a good option and it’s also simple to set up with VW bank

ohhello

Thanks for all the replies!

I plan on ringing them early next week so I'll report back with what rate VW Bank are offering. Its through Audi Finance but its all the same I believe.

They offered me 19k for the car about 2 months ago. A similar spec car is currently selling for between the 28-30k mark.
I understand they need to make their cut, but considering they're getting a sale, another kick back from a PCP contract and repeat business from me, I thought they could to a lot better.

It seems VW Bank might be the cheapest refinance option so.

bazz26

Are they actually selling for 28-30k or are they asking 28-30k? There can be a big difference in what someone wants for a car and what it actually sells for.

To get a more realistic value you need to calculate how much it would cost to import the exact same car from the UK. With weak sterling and cheaper cars in the UK, second hand car values here have taken a pounding. Plus it can be more attractive for people to get on the PCP ladder who would have normally bought second hand.

Danbo!

Another option would be to sell the car yourself after paying off the final payment with a bridging loan, if you feel you could get more than what’s being offered. Or visit other garages to see what they could do on a renewed pcp.

Casati

bazz26 wrote: »

Are they actually selling for 28-30k or are they asking 28-30k? There can be a big difference in what someone wants for a car and what it actually sells for.

To get a more realistic value you need to calculate how much it would cost to import the exact same car from the UK. With weak sterling and cheaper cars in the UK, second hand car values here have taken a pounding. Plus it can be more attractive for people to get on the PCP ladder who would have normally bought second hand.

That’s the logic dealers are taking pricing trade ins but they are not taking that approach with pricing second hand cars. If the dealer is asking 28k for a similar car would they take 25k - not likely.

Also the trade will always price an ‘Irish’ car trader by a local lad higher than an equivalent spec U.K car bought at auction and potentially an ex rental etc

My advise is to shop around, Ive found 6k swings in trade in prices by main dealers when looking to buy the exact same car, some dealers want to extract as much as possible on a single sale and others want repeat business over the next 20 years

MarkN

Casati wrote: »

That’s the logic dealers are taking pricing trade ins but they are not taking that approach with pricing second hand cars. If the dealer is asking 28k for a similar car would they take 25k - not likely.

Depends on when the buyer is standing there with the money. End of month, end of quarter 2018, yeh they might.

The car I have is going for €30,000 all day long on Carzone but I was offered €25,000 for it on a trade in this week. Brexit has had a huge impact.

carsfan2

Are you selling your 6 series mark?
If so can’t believe it’s only worth 25k?

MarkN

carsfan2 wrote: »

Are you selling your 6 series mark?
If so can’t believe it’s only worth 25k?

That was with a BMW dealer who is going to have to stand over a 2 year warranty on a 6 year old 640d with 97,000kms on it and for that combined with UK values, it’s a serious hit that I was a bit surprised at, I won’t lie.

I’m not really serious about selling but the practicality of the 2 door is starting to give me a few problems so I priced against a 171 G30. There’s a 2014 640 Gran Coupe in Cambridge Motor Co I may take a look at next week.

Casati

MarkN wrote: »

Depends on when the buyer is standing there with the money. End of month, end of quarter 2018, yeh they might.

The car I have is going for €30,000 all day long on Carzone but I was offered €25,000 for it on a trade in this week. Brexit has had a huge impact.

You have that 640d? Didn’t you just recently buy it?

I agree 100% Brexit is killing things, I don’t think it’s actaully helping used dealers either as their stock value must be taking a hammering and their is a risk that sterling will continue falling. If low interest PCP didn’t exist in Ireland I’d say most dealers would go to the wall

MarkN

Casati wrote: »

You have that 640d? Didn’t you just recently buy it?

I agree 100% Brexit is killing things, I don’t think it’s actaully helping used dealers either as their stock value must be taking a hammering and their is a risk that sterling will continue falling. If low interest PCP didn’t exist in Ireland I’d say most dealers would go to the wall

May 17. Well we know what happened to property when overheating and endless finance boiled over.

bazz26

BMW dealers take the proverbial piss. They offer bottom dollar trade in values and ask top dollar for the cars they are selling. Brexit doesn't seem to affect their stock. I enquired about upgrading my 4 year old F10 to a 2 year old F36 430d recently and they offered me a losey trade in value and their car was valued very high compared to others. They sourced the F36 from across the pond too so probably bought it at a very good price over there.

Mark, I seen Beshoff were you bought the F13 had a nice spec 171 G30 M Sport recently and it was priced very competitively compared to others. Unsurprisingly it's gone now so presume it's sold. He also have a very nice F31 330d Touring which might interest you but he is asking strong money on it.

carsfan2

I agree with bazz re Bmw dealers approach to trade ins. The overheads in the dealers must be huge though nowadays judging by the staff numbers I see in them.
Best to sell private and bring in from uk yourself in this situation mark unless you want dealer finance.
I aheee that without pcp Irish dealers would be in huge trouble and when the lower than expected values of end of term pcp cars start to impact sales will slow more.

MarkN

As I said I’m not in a major rush, I really do love the car and even as nice as a new or 2017 520d would be, I don’t think it would beat the 640 so if I need more space I can see a 2014+ 640GC solving the problem.

jesus_thats_gre

MarkN wrote: »

That was with a BMW dealer who is going to have to stand over a 2 year warranty on a 6 year old 640d with 97,000kms on it and for that combined with UK values, it’s a serious hit that I was a bit surprised at, I won’t lie.

I’m not really serious about selling but the practicality of the 2 door is starting to give me a few problems so I priced against a 171 G30. There’s a 2014 640 Gran Coupe in Cambridge Motor Co I may take a look at next week.

Got offered 13k for my 2012 MSport 520d last week I know how you feel tbh.

MarkN

jesus_thats_gre wrote: »

Got offered 13k for my 2012 MSport 520d last week I know how you feel tbh.

I got €36,000 for mine this time 4 years ago. €23,000 drop in that time.

Cyrus

ohhello wrote: »

Thanks for all the replies!

I plan on ringing them early next week so I'll report back with what rate VW Bank are offering. Its through Audi Finance but its all the same I believe.

They offered me 19k for the car about 2 months ago. A similar spec car is currently selling for between the 28-30k mark.
I understand they need to make their cut, but considering they're getting a sale, another kick back from a PCP contract and repeat business from me, I thought they could to a lot better.

It seems VW Bank might be the cheapest refinance option so.

Are you interested in any other marques ? I got a much better offer on my Audi from Mercedes than I did from Audi themselves and ended up buying from them instead

Heres Johnny

jesus_thats_gre wrote: »

MarkN wrote: »

That was with a BMW dealer who is going to have to stand over a 2 year warranty on a 6 year old 640d with 97,000kms on it and for that combined with UK values, it’s a serious hit that I was a bit surprised at, I won’t lie.

I’m not really serious about selling but the practicality of the 2 door is starting to give me a few problems so I priced against a 171 G30. There’s a 2014 640 Gran Coupe in Cambridge Motor Co I may take a look at next week.

Got offered 13k for my 2012 MSport 520d last week I know how you feel tbh.

There are 2011 520d msport in UK up for around 8k STG. Just happened to be looking today. You could easily land one over here for about 12k euro including VRT and travel costs.

MarkN

Heres Johnny wrote: »

There are 2011 520d msport in UK up for around 8k STG. Just happened to be looking today. You could easily land one over here for about 12k euro including VRT and travel costs.

Wow. Decent car for that price but bit of a timing chain roulette to be factored in.

Heres Johnny

MarkN wrote: »

Heres Johnny wrote: »

There are 2011 520d msport in UK up for around 8k STG. Just happened to be looking today. You could easily land one over here for about 12k euro including VRT and travel costs.

Wow. Decent car for that price but bit of a timing chain roulette to be factored in.

There's a decent touring for 8.5k. There are tons and tons of SE for 7k.


https://www.autotrader.co.uk/classified/advert/201711071021337?advertising-location=at_cars&advertising-location=at_cars&year-from=2011&postcode=bt412sj&model=5 SERIES&page=5&make=BMW&year-to=2011&fuel-type=Diesel&onesearchad=Used&onesearchad=Nearly New&onesearchad=New

bazz26

You would want to be putting away a few bob for potential expensive bills as these cars can be hefty to repair as they get old. You might buy them for 8k now but they are still 50k cars to potentially fix.

Heres Johnny

I've had 2 e39s and currently in an e60 but they have all been petrol I found them all very reliable. I do appreciate there is a potential timing chain problem in the f10 diesel.

But it was just more of an observation of the poster saying he was only offered 13k for a 2012 on a trade in which he wasn't happy about. I think it's close enough to the max a dealer could offer to be honest.

Big cars depreciating too quickly these days but it's close enough to the 50% value being lost every 3 years I tend to use as a guide.

50k car new worth 25k after 3 years and 12.5k after 6.
6k after 9 years and 3k after 12.

If you look at a 5 series from 2015, 2012, 2009 and 2006 that's close to what you will find.

Goes for most cars to be honest but very pronounced when you go into the premium sector.

andrewg1981

Hi folks. My 3 year pcp is up in May but the garage I bought it off closed last year. Do I just contact my closest authorized dealer to refinance?

jesus_thats_gre

Heres Johnny wrote: »

There are 2011 520d msport in UK up for around 8k STG. Just happened to be looking today. You could easily land one over here for about 12k euro including VRT and travel costs.

That is fine once they are consistent about it. The 14k there were looking from me to upgrade to a similar spec'd 2014 model, i.e. looking for 27k for it, doesn't seem overly consistent.

bazz26

Heres Johnny wrote: »

I've had 2 e39s and currently in an e60 but they have all been petrol I found them all very reliable. I do appreciate there is a potential timing chain problem in the f10 diesel.

But it was just more of an observation of the poster saying he was only offered 13k for a 2012 on a trade in which he wasn't happy about. I think it's close enough to the max a dealer could offer to be honest.

Big cars depreciating too quickly these days but it's close enough to the 50% value being lost every 3 years I tend to use as a guide.

50k car new worth 25k after 3 years and 12.5k after 6.
6k after 9 years and 3k after 12.

If you look at a 5 series from 2015, 2012, 2009 and 2006 that's close to what you will find.

Goes for most cars to be honest but very pronounced when you go into the premium sector.

I think the poster was making the point that what they were offering as a trade-in was hugely low compared to what they were asking for the same car on their forecourt. Even taking into account sticking a warranty, cash discounts etc, the markup these dealers want is huge.

Heres Johnny

Yeah I agree with the last 2 posts since I posted. No consistency. The difference between their forecourt prices and trade in values have a huge spread.