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How did PCP work out in the end?

  • 13-01-2018 8:28am
    #1
    Registered Users Posts: 264 ✭✭ photosmart


    Hi All

    PCP has been going a while now and many people seem to be coming to the end of their 3 year contracts. It would be really helpful to people considering them now to see what the real cost to people was over the three years.

    Real trade in prices etc...

    Anybody out there willing to put up some info on how they worked out
    in the end

    ie
    Car Type
    Price
    Deposit
    Trade in offered after three years etc...


«13456736

Comments

  • Closed Accounts Posts: 418 ✭✭ Lekrub


    Will be interesting to see this. It's gonna go eithier

    A: It didn't work out as you planned? You're f*ucked now and we told you so

    B: Everything worked out fine, I told ye old fashioned bastards it would be


  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    Car Type: VW Golf CL 1.2 TSI M6
    Price: 23300 ( excl interest)
    Deposit: 10%
    Trade in offered after three years: 18000
    9k of equity
    Mileage under 45k km

    Pretty good deal me thinks.


  • Registered Users Posts: 1,332 ✭✭✭ Rackstar


    Car Type: VW Golf CL 1.2 TSI M6
    Price: 23300 ( excl interest)
    Deposit: 10%
    Trade in offered after three years: 18000
    Mileage under 45k km

    Pretty good deal me thinks.

    18k trade in, that's incredible.


  • Registered Users Posts: 17,263 ✭✭✭✭ Blazer


    I call bull**** on that. No way is a 3 year old golf only depreciating 5k unless the interest was 7% or higher.


  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    Rackstar wrote: »
    18k trade in, that's incredible.
    Skoda offered 15k against Octavia, so golf estate 1.0 dsg it is:)


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  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    Blazer wrote: »
    I call bull**** on that. No way is a 3 year old golf only depreciating 5k unless the interest was 7% or higher.
    New golf is ordered against this trade in, so no bull****. I have an official finance quote from VW garage. Interest was 2.9% will be 0.9% on a new one.


  • Registered Users Posts: 17,263 ✭✭✭✭ Blazer


    is the new one higher specced?
    If not that's some deal.

    Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
    The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.


  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    Blazer wrote: »
    is the new one higher specced?
    If not that's some deal.
    Yes, the new one is HL, DSG and an estate so I will buy it at the end of the next PCP but ultimately I’ll have 2 new cars over 6 years for the price of one. Obviously I won’t get the same deal twice:)


  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    Blazer wrote: »
    is the new one higher specced?
    If not that's some deal.

    Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
    The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.

    I guess petrol golfs are scarce, no competition from the second hand ones being brought from the uk. On the other hand the dealer could take a small hit when selling secondhand car but I’m buy a more expensive new one so I guess it balances out. And tbh, the salesman was very generous:)


  • Registered Users Posts: 72,780 ✭✭✭✭ colm_mcm


    When are you picking up the new one?


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  • Registered Users Posts: 714 ✭✭✭ Rusky rusky


    colm_mcm wrote: »
    When are you picking up the new one?
    Some time in February. Don’t know the exact date yet.


  • Registered Users Posts: 5,186 ✭✭✭ DaveyDave


    Blazer wrote: »
    is the new one higher specced?
    If not that's some deal.

    Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
    The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.

    Yeah but not everyone wants a basic model car with steel wheels VS a slightly older, well looked after Highline with higher spec?


  • Registered Users Posts: 264 ✭✭ photosmart


    Hi Rusky

    Thanks for posting
    Thats a serious deal alright.
    Anybody else out there with info? I'm particularly interested in Skoda octavias as thats on my radar as next car - maybe on pcp

    P


  • Registered Users Posts: 3,137 ✭✭✭ carsfan2


    To contrast the other poster, I have a pcp on a 3 series bmw. I am 18 months in and owe 33k currently. Car has a gfmv of about 24k. Got a trade in value from supplying dealer of 30k so car is 3k negative equity. cannot see that the car will only depreciate another 6k in 18 months so expect I will hand it back at end of term with nothing to show as I cannot see there being any equity in the car suddenly appearing.
    When I told dealer I was surprised and unhappy with the value, he blamed sterling weakness and recent price cuts for new bmws.
    Hesaid a fair few people were unhappy now witless lack of equity in their pcp and were choosing to hold on to their cars as a result.
    I think this will become more common and will contribute to fewer sales going forward.


  • Closed Accounts Posts: 1,991 sword1


    Won't you be gaining however much the car is worth less than gfmv? If the car is worth 20k when you hand it back are you 4k better off than if you had gotten a regular loan for the car?


  • Registered Users Posts: 3,137 ✭✭✭ carsfan2


    sword1 wrote: »
    Won't you be gaining however much the car is worth less than gfmv? If the car is worth 20k when you hand it back are you 4k better off than if you had gotten a regular loan for the car?
    Yes. This is why I am not too unhappy overall.
    I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
    On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
    I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.


  • Registered Users Posts: 3,912 ✭✭✭ MarkN


    carsfan2 wrote: »
    Yes. This is why I am not too unhappy overall.
    I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
    On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
    I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

    How much cash did you put in to begin?


  • Registered Users Posts: 7,170 ✭✭✭ JoeA3


    I recently ended a PCP on a 2015 Golf R. I went in with max deposit in 2015, gfv was about 17.5k.

    I had a deal done for a brand new one, which due to other circumstances I cancelled this week.

    I don’t particularly want to share specific numbers publicly, as I think it’s unfair on the salesperson, but if anyone really wants to know, send me a pm. But suffice to say I was coming out with a very respectable level of equity.

    I’ve gone into another pcp arrangement now with a used car with an entirely different brand. I don’t believe I’ll see the same level of equity next time round but I’ve gone into it with my eyes open. Doing the sums, it’s still the cheaper approach for me overall.


  • Registered Users Posts: 72,780 ✭✭✭✭ colm_mcm


    What sort of GMFV did they give on the used car?


  • Registered Users Posts: 7,170 ✭✭✭ JoeA3


    colm_mcm wrote: »
    What sort of GMFV did they give on the used car?

    It’s higher, it’s about €20k.


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  • Registered Users Posts: 72,780 ✭✭✭✭ colm_mcm


    Oh sorry, I meant as a percentage of what you were buying, I would've thought GMFV might be better than a new car because the depreciation isn't as sharp


  • Registered Users Posts: 3,028 ✭✭✭ Lantus


    carsfan2 wrote:
    Yes. This is why I am not too unhappy overall. I think I will benefit in the end as I do reckon the car will be worth less than gfmv. On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv. I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.


    Handing back is the doomsday scenario! Generally only required if your never going to drive again. You already put in a deposit for this car. Your best best is to finance the outstanding amount and pay off.


  • Registered Users Posts: 3,137 ✭✭✭ carsfan2


    MarkN wrote: »
    carsfan2 wrote: »
    Yes. This is why I am not too unhappy overall.
    I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
    On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
    I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

    How much cash did you put in to begin?
    I put the max deposit that Bmw would allow in as they contribute 5k from the seai grant into the deposit too.
    To be honest this is not a factor as car will still be paid down to gfmv regardless of deposit.
    I think Bmw gfmv values were optimistic to begin with and now that values have fallen through the floor they are completely unrealistic.
    However from my part I am glad I didn’t pay up front as I was going to do as I will be in a position to hand it back unless values suddenly improve which is extremely unlikely.


  • Registered Users Posts: 18,055 ✭✭✭✭ _Brian


    JoeA3 wrote: »
    I recently ended a PCP on a 2015 Golf R. I went in with max deposit in 2015, gfv was about 17.5k.

    I had a deal done for a brand new one, which due to other circumstances I cancelled this week.

    I don’t particularly want to share specific numbers publicly, as I think it’s unfair on the salesperson, but if anyone really wants to know, send me a pm. But suffice to say I was coming out with a very respectable level of equity.

    I’ve gone into another pcp arrangement now with a used car with an entirely different brand. I don’t believe I’ll see the same level of equity next time round but I’ve gone into it with my eyes open. Doing the sums, it’s still the cheaper approach for me overall.

    Why is it unfair on the sales man when your not naming nor identifying them ?? Surely it Benitez’s punters to get a good idea how it’s worked out for people.


  • Registered Users Posts: 7,170 ✭✭✭ JoeA3


    colm_mcm wrote: »
    Oh sorry, I meant as a percentage of what you were buying, I would've thought GMFV might be better than a new car because the depreciation isn't as sharp

    Even though the “new” car I’ve bought is quite a bit cheaper than the new R I was intending to buy, the new R wasn’t going to cost me a huge amount much more in terms of finance. VW were doing sub 1% APR deals, deposit contributions, etc. Which you do not get anything like on used cars and especially used non VW’s. Even used VW’s, the Apr is up on 5% or more.


  • Registered Users Posts: 7,170 ✭✭✭ JoeA3


    _Brian wrote: »
    Why is it unfair on the sales man when your not naming nor identifying them ?? Surely it Benitez’s punters to get a good idea how it’s worked out for people.

    I’m not getting into a debate about it. I’ve told you the equity was very healthy and I was getting into a new R for little outlay, so the sums aren’t too hard to work out if you really want to.


  • Registered Users Posts: 21,867 ✭✭✭✭ mickdw


    JoeA3 wrote: »
    I’m not getting into a debate about it. I’ve told you the equity was very healthy and I was getting into a new R for little outlay, so the sums aren’t too hard to work out if you really want to.

    The deals must be really superb when people are starting to consider the salesmans feelings.
    If only a salesman acted in a similar fashion.


  • Registered Users Posts: 7,170 ✭✭✭ JoeA3


    I shouldn’t have bothered. I posted in this thread originally to give people an idea of how it works out in the end. To give some balance to the pcp doomsday brigade. If anyone wants very specific details send me a pm and I’ll be happy to help / advise. Sure maybe I’ll share my bank account number while I’m at it.

    But as usual a few smart arses chip in to crank up their thanks count.


  • Registered Users Posts: 9,455 ✭✭✭ mloc123


    I look forward to a conversation in two years time when they tell me my Superb 280 is worth less than a TDI... "Sure who would want a petrol one?"

    I am pretty sure I'll just pay the final balloon and keep it tho.


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  • Registered Users Posts: 1,527 ✭✭✭ Ionised


    Changed from a Polo BlueGT to Cupra 300 last July.
    Polo was on PCP at 0% with 6 months left to run. GMFV plus what was left on finance was 14.5k and Seat gave me 18k as trade which I felt was OK on the original price of 24k for the Polo.

    Refinanced on a new PCP at 0% again.


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