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How did PCP work out in the end?

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  • Registered Users Posts: 1,558 ✭✭✭Ionised


    Off topic a bit, but the sales guy in Seat looked and sounded just like Swiss Tony from the Fast Show.

    A bit off putting at first it must be said!


  • Registered Users Posts: 73,404 ✭✭✭✭colm_mcm


    Ionised wrote: »
    Off topic a bit, but the sales guy in Seat looked and sounded just like Swiss Tony from the Fast Show.

    A bit off putting at first it must be said!

    Owning a car on PCP is very much like making love to a beautiful woman


  • Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    colm_mcm wrote: »
    Owning a car on PCP is very much like making love to a beautiful woman

    You know it wont end well?


  • Registered Users Posts: 498 ✭✭TheBigEvil


    carsfan2 wrote: »
    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.

    I was in same situation 2 years ago. Bought a 3 series on a 2 year PCP, GFMV was 24K. Went into them two months before end of agreement to see what equity I would have, and the only offered me the GFMV, basically, paying off the balloon payment... I was not happy. The same car, on their forecourt was selling for 33K. I said I was expecting at least a trade in of 28/29, understanding that they will have a markup.

    I made clear I wasn't happy, and asked them to look at it again, that something just wasn't right. There should easily have been 4-5K equity in the car, especially as I was trading it in with the same dealer (BMW).

    Ended up seeing their Head of Finance, was in the office with him and the Sales guy that I did the PCP with for nearly two hours, and the best they could come up with was to put me in a second hand 330e and I'd have to put a larger deposit down.

    So I left, pretty pissed off and had a think. Ended up going to Volkswagen. VW gave me 5k equity on the car, got a brand new Passat, with fantastic spec, and monthly repayments less than what I was on in the BMW.

    Some people don't realise or remember, if you are in a PCP deal, you are not limited to the dealer/brand you bought with. If you don't get the deal you are looking for, you can go to a different brand and see what you will get there. They just write a cheque to the other finance company. Was painless for me.

    **Sorry for the long response :)


  • Registered Users Posts: 1,558 ✭✭✭Ionised


    colm_mcm wrote:
    Owning a car on PCP is very much like making love to a beautiful woman


    I would like it noted that I did manage to resist stating this in my original post just so someone else could have that joy.


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  • Moderators, Recreation & Hobbies Moderators Posts: 4,627 Mod ✭✭✭✭tedpan


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


    Nissan leaf SVE 151 Feb 2015
    29k new
    6k deposit
    8.2k due at the end

    I've done 93k Kms and the dealer I bought it from is now only offering 9.2k so that gives me just 1k as a deposit on the next one. Not happy with that at all. I'd estimated for 90k Kms and the dealer guessed I'd have about 5ke to put toward the next one, which is extremely disappointing now.

    I've heard belgard Nissan are giving much better offers, so will give them a call next week.

    Although, I think I will just get a loan for the final value and just pay it off over two years as the car is still driving perfectly.

    I think I'm one of the lucky ones as my final value isn't crazy.


  • Registered Users Posts: 3,521 ✭✭✭carsfan2


    Lantus wrote: »
    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.

    Not everyone buys on pcp because they have to. I chose to this time as got a good rate and didn’t want to spend my own money. I also was concerned about the ultimate residual value on a car I don’t want to own forever. As it may turn out, with the collapse of residual values in the last few months the car may be only worth gfmv or less and I will be free to hand back and buy again without the hassle of a trade in.
    If the car had positive equity I would have been ok too. I was under no illusion going this route,however I do think some people are going to get a fright when they come to trade in as values have taken a tumble recently.


  • Registered Users Posts: 3,521 ✭✭✭carsfan2


    TheBigEvil wrote: »
    I was in same situation 2 years ago. Bought a 3 series on a 2 year PCP, GFMV was 24K. Went into them two months before end of agreement to see what equity I would have, and the only offered me the GFMV, basically, paying off the balloon payment... I was not happy. The same car, on their forecourt was selling for 33K. I said I was expecting at least a trade in of 28/29, understanding that they will have a markup.

    I made clear I wasn't happy, and asked them to look at it again, that something just wasn't right. There should easily have been 4-5K equity in the car, especially as I was trading it in with the same dealer (BMW).

    Ended up seeing their Head of Finance, was in the office with him and the Sales guy that I did the PCP with for nearly two hours, and the best they could come up with was to put me in a second hand 330e and I'd have to put a larger deposit down.

    So I left, pretty pissed off and had a think. Ended up going to Volkswagen. VW gave me 5k equity on the car, got a brand new Passat, with fantastic spec, and monthly repayments less than what I was on in the BMW.

    Some people don't realise or remember, if you are in a PCP deal, you are not limited to the dealer/brand you bought with. If you don't get the deal you are looking for, you can go to a different brand and see what you will get there. They just write a cheque to the other finance company. Was painless for me.

    **Sorry for the long response :)
    BMW dealers want it both ways in my experience. Low trade in value, giving no benefit to any extras and then selling for top money when they retail your car.
    I reckon they try to take between 6 to 10 k out of most deals.
    I.e. if your car will retail for 40k they offer you about 32k when they buy it from you.


  • Registered Users Posts: 23,293 ✭✭✭✭mickdw


    carsfan2 wrote: »
    BMW dealers want it both ways in my experience. Low trade in value, giving no benefit to any extras and then selling for top money when they retail your car.
    I reckon they try to take between 6 to 10 k out of most deals.
    I.e. if your car will retail for 40k they offer you about 32k when they buy it from you.

    And when i went in buying without a trade in, i still couldnt get a deal out of them. They still wanted to make a killing by offering higher rates than advertised, trying to sell cars out of stock for much more than i could order one for and not allowing bmw contribution.
    I was quoted something like 830 per month for a 330e. I told them that was about double what i was expecting to pay and left.


  • Registered Users Posts: 310 ✭✭photosmart


    Thanks to all for replies - seems like beemer deals are a bummer. Anybody out there driving normal economy models? I'd be really interested in seeing deals on the most popular carsfor example

    Golf Trendline Petrol or Diesel
    Skoda Octavia/Superb ambition models

    Renaults?
    Dusters?
    Hyundais and Kias?
    Fords?

    P


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  • Closed Accounts Posts: 1,027 ✭✭✭MidMan25


    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.

    That trade in value effectively also includes the discount on the new car you are buying.

    For comparison, I am also trading in my car purchased through PCP in March/April, it will be 2.5 years old then.

    Skoda Fabia Combi Monte Carlo 1.2 TSI M6 110BHP
    Price: 22000 (Excl. interest + including options)
    Deposit: 10%
    Trade In Offered After Three Years: 14600
    Mileage: 50k km


  • Registered Users Posts: 4,162 ✭✭✭MarkN


    carsfan2 wrote: »
    BMW dealers want it both ways in my experience. Low trade in value, giving no benefit to any extras and then selling for top money when they retail your car.
    I reckon they try to take between 6 to 10 k out of most deals.
    I.e. if your car will retail for 40k they offer you about 32k when they buy it from you.

    Spot on, the insulting offer of €25,000 to me is the same car they have on their websites for €34,995. They’re working off the assumption that anyone they quote to is a fool who will roll over and take it.


  • Registered Users Posts: 3,764 ✭✭✭Dakota Dan


    tedpan wrote: »
    Nissan leaf SVE 151 Feb 2015
    29k new
    6k deposit
    8.2k due at the end

    I've done 93k Kms and the dealer I bought it from is now only offering 9.2k so that gives me just 1k as a deposit on the next one. Not happy with that at all. I'd estimated for 90k Kms and the dealer guessed I'd have about 5ke to put toward the next one, which is extremely disappointing now.

    I've heard belgard Nissan are giving much better offers, so will give them a call next week.

    Although, I think I will just get a loan for the final value and just pay it off over two years as the car is still driving perfectly.

    I think I'm one of the lucky ones as my final value isn't crazy.

    What did you pay on the loan?


  • Moderators, Recreation & Hobbies Moderators Posts: 4,627 Mod ✭✭✭✭tedpan


    Dakota Dan wrote:
    What did you pay on the loan?


    Interest?


  • Registered Users Posts: 9,555 ✭✭✭antiskeptic


    tedpan wrote: »
    Nissan leaf SVE 151 Feb 2015
    29k new
    6k deposit
    8.2k due at the end

    I've been reading this thread, not having much an idea of PCP (I'm a 400-500 euro a year depreciation on my motor man).

    Question 1: Am I to understand the cost of ownership of this car for 3 years has been 29K minus the 9.2K trade in value plus whatever interest applies to the loan element?

    Question 2: There seems to be a lot of grumbling that the guaranteed minimum value is all that's been offered at the end. Why would anyone be surprised at this, unless they actually supposed salesman spiel along the lines of "shure, it'll be certainly worth a lot more than that come the time" was a solid basis to get into a financial agreement.


  • Closed Accounts Posts: 8,585 ✭✭✭jca


    JoeA3 wrote: »
    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.

    Yes you're right you shouldn't have bothered posting. What's with all the cloke and dagger rubbish? Pm you for the figures, seriously? Dial down the aul ego lad you're only driving a golf, Sorry, were only driving a golf..


  • Registered Users Posts: 569 ✭✭✭FaganJr


    I went into my local Ford garage to enquire about a C-max on PCP 2 years ago. He replied with "we don't really do PCP" we prefer to deal John and Mary cheque book who buy outright.
    I was dumb founded and couldn't even believe what he had told me!!!

    So I went down to my local Mazda dealer and bought Mazda 3 Exec demo, outright!!

    It worked out better for me as I have a far superior car now!!


  • Posts: 14,344 ✭✭✭✭ [Deleted User]


    jca wrote: »
    Yes you're right you shouldn't have bothered posting. What's with all the cloke and dagger rubbish? Pm you for the figures, seriously? Dial down the aul ego lad you're only driving a golf, Sorry, were only driving a golf..

    Have to agree. I don't see the point in posting in a thread about how your PCP went, if you're not gonna detail how your PCP went.


  • Registered Users Posts: 4,162 ✭✭✭MarkN


    FaganJr wrote: »
    I went into my local Ford garage to enquire about a C-max on PCP 2 years ago. He replied with "we don't really do PCP" we prefer to deal John and Mary cheque book who buy outright.
    I was dumb founded and couldn't even believe what he had told me!!!

    So I went down to my local Mazda dealer and bought Mazda 3 Exec demo, outright!!

    It worked out better for me as I have a far superior car now!!

    You should email that story to Spielberg.


  • Closed Accounts Posts: 8,585 ✭✭✭jca


    FaganJr wrote: »
    I went into my local Ford garage to enquire about a C-max on PCP 2 years ago. He replied with "we don't really do PCP" we prefer to deal John and Mary cheque book who buy outright.
    I was dumb founded and couldn't even believe what he had told me!!!

    So I went down to my local Mazda dealer and bought Mazda 3 Exec demo, outright!!

    It worked out better for me as I have a far superior car now!!

    Did you read the title of the thread?


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  • Registered Users Posts: 24,296 ✭✭✭✭lawred2


    photosmart wrote: »
    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...

    Thanks for this. Looking at a PCP on a new 5008.


  • Registered Users Posts: 569 ✭✭✭FaganJr


    jca wrote:
    Did you read the title of the thread?


    Yes your experience with PCP. My first and last thankfully


  • Registered Users Posts: 6,206 ✭✭✭DaveyDave


    Let's try keep this thread on topic, there's not too many PCP figures around here and the ones that are here are lost in the main PCP thread. Any negative experiences are best to be posted in a different thread. It would be nice to see what kind of figures people are coming out with so maybe others can get a ballpark for their car.

    I'm assuming that as these cars are PCP most of then are going back squeaky clean. Any minor scratches or dings?


  • Moderators, Recreation & Hobbies Moderators Posts: 4,627 Mod ✭✭✭✭tedpan


    Question 1: Am I to understand the cost of ownership of this car for 3 years has been 29K minus the 9.2K trade in value plus whatever interest applies to the loan element?

    Well, plus the 3k interest over the three years. That's where they get you, the interest is on the full value 29k in this case. If you want to keep the car, you'll have additional interest on the next loan.
    Question 2: There seems to be a lot of grumbling that the guaranteed minimum value is all that's been offered at the end. Why would anyone be surprised at this, unless they actually supposed salesman spiel along the lines of "shure, it'll be certainly worth a lot more than that come the time" was a solid basis to get into a financial agreement.

    Yeah, I was a bit naïve, it was the first time I purchased a new car plus it was electric. Lapped up the salesman spiel, but still think I did well with the cost savings on fuel.


  • Registered Users Posts: 13 Researchlab


    carsfan2 wrote: »
    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.

    Interesting. A salesman from Opel once explained to me that BMW was going over the roof with their PCP deals and that they knew that in three years time it could work out or not but in the meantime BMW would have sold a good number of cars. You can see plenty of them these days - car of the people :) He said that soon customers would realise that their would be almost no equity to keep the PCP going afterwards. He also said that they were getting BMWs into Ireland at a high cost quite dependent on the sterling. Apparently he was right.


  • Registered Users Posts: 4,162 ✭✭✭MarkN


    Interesting. A salesman from Opel once explained to me that BMW was going over the roof with their PCP deals and that they knew that in three years time it could work out or not but in the meantime BMW would have sold a good number of cars. You can see plenty of them these days - car of the people :) He said that soon customers would realise that their would be almost no equity to keep the PCP going afterwards. He also said that they were getting BMWs into Ireland at a high cost quite dependent on the sterling. Apparently he was right.

    The key to BMW ownership on PCP was to not go in with big deposits. If you couldn’t afford the higher repayments then a BMW on PCP wasn’t for you. Plenty of their finance staff advised low deposits and higher repayments to me anytime I looked at something. IMO it suits some brands better than others, VW in particular seem to work out well.


  • Registered Users Posts: 7,421 ✭✭✭JoeA3


    jca wrote: »
    Yes you're right you shouldn't have bothered posting. What's with all the cloke and dagger rubbish? Pm you for the figures, seriously? Dial down the aul ego lad you're only driving a golf, Sorry, were only driving a golf..

    :rolleyes:

    Surely one of the most ignorant asshat replies I've ever seen on boards and that takes some doing.


  • Registered Users Posts: 22,929 ✭✭✭✭ShadowHearth


    carsfan2 wrote: »
    BMW dealers want it both ways in my experience. Low trade in value, giving no benefit to any extras and then selling for top money when they retail your car.
    I reckon they try to take between 6 to 10 k out of most deals.
    I.e. if your car will retail for 40k they offer you about 32k when they buy it from you.

    From what I see so far, Bmw are the worst sinners for this. They just want to have their cake and eat it too.


  • Registered Users Posts: 3,027 ✭✭✭Lantus


    161 Fabia ambition 1.2 90 bhp ambition. 13% deposit.

    Enquired for an upgrade before 24 months. Quoted additional 700 deposit to keep payments at 240 ( or 20 a month uplift.) Not a lot but I was a little surprised given its a modern petrol with on target mileage 40k at 2 years.

    Didn't haggle or push but decided to leave it there for the time being and will re examine when the 3 years are up.

    My feeling is to buy outright. Pay off in 2 years as gmfv will be low enough and then look at an ev. I'm happy enough at this outcome and a pcp exit strategy is needed for everyone at some point. Mrs lantus is on 2nd deal and is also looking to exit when her term is up.


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  • Registered Users Posts: 23,293 ✭✭✭✭mickdw


    MarkN wrote: »
    The key to BMW ownership on PCP was to not go in with big deposits. If you couldn’t afford the higher repayments then a BMW on PCP wasn’t for you. Plenty of their finance staff advised low deposits and higher repayments to me anytime I looked at something. IMO it suits some brands better than others, VW in particular seem to work out well.

    Vw have it fairly right going with sensible percentage gfv on mid priced cars that hold their value well. The sensible car pricing allows for a fair repayment even with the sensible gfv figure.
    Bmw on the other hand with overly optimistic gfv and what i would consider terrible trade in offers together with a high cost car to start with makes it all rather difficult and really considering all that the bmw pcps are a no go.
    A 520d is around 50k, add interest and it 55k mimimim id imagine. Its therefore going to cost 30k for 3 years whatever way you cut it and really alot of people getting into a 520d at 480 per month etc dp t reaise the full cost or at a minimum expect their deposit back at end.
    A sensible pcp on a 5 series would look like this in my opinion

    50k car
    Zero interest deal.
    30 percent gfv of 15000
    Deposit of 10000
    36 x €695.

    With those figures you would sell less cars but get more customers who could actually afford the car plus the customer would be repace the car too.
    Alternative could be zero deposit deal with 25k gfv 695 per month with no possibility of equity.
    ...... I think we will see more of this type of finance here.

    Mercedes have it better. They seem to have no interest in offering e class at low low figures. It seems to be at around 600 per month with healthy enough deposit. They might not sell them to as many people but customers will be returning and buying again and again.
    Bmw are just taking 1 time sales and destroying customer confidence and goodwill.


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