How did PCP work out in the end?

steirishrover

Bass Reeves wrote: »

Any banking products now need s pps

Is it to just check credit history or something? Or prove my identity

EndaHonesty

Senature wrote: »

After 3 years the second hand car can be sold on for approx 12k give or take, so it has cost 8k over 3 years, which is €222 per month. Am I missing something? Not saying this to be negative about PCP, just trying to establish how the comparison stacks up here.

The PCP car has residual value too, in my case the GMFV is 16,000 and the actual value will be around 25,000. (9000/36 = 250)

Where are you getting 12,000 from? The car will be at least 6 years old and have 120,000+ Kms.

Senature

EndaHonesty wrote: »

The PCP car has residual value too, in my case the GMFV is 16,000 and the actual value will be around 26,000.

Where are you getting 12,000 from? The car will be at least 6 years old and have 120,000+ Kms.

Well broadly speaking value would decrease by slightly less than half every 3 years. Also, on Done Deal several 2017 models that are selling for 20k (Passat, Kuga, Ateca) are selling 2014 models for 9-15k.

EndaHonesty

Senature wrote: »

Well broadly speaking value would decrease by slightly less than half every 3 years. Also, on Done Deal several 2017 models that are selling for 20k (Passat, Kuga, Ateca) are selling 2014 models for 9-15k.

Ok, so accepting your figures, and my figures, how do you think the 2 scenarios compare?

Senature

EndaHonesty wrote: »

Ok, so accepting your figures, and my figures, how do you think the 2 scenarios compare?

That's what I'm trying to work out.

Over a 3 year period you paid 4k deposit + 20k repayments = 24k. Car is then worth 16k minimum so you have "lost" 8k. Is that correct?

Is that a real world scenario? How is the dealer making any money?

Water2626262

steirishrover wrote: »

Is it to just check credit history or something? Or prove my identity

Check your credit rating under the new central credit register. It’s a lot slicker than the ICB. They need your pps to check it.

EndaHonesty

Senature wrote: »

That's what I'm trying to work out.

Over a 3 year period you paid 4k deposit + 20k repayments = 24k. Car is then worth 16k minimum so you have "lost" 8k. Is that correct?

Is that a real world scenario? How is the dealer making any money?

My car will be worth around 25,000, not 16,000.

I only paid a deposit on the first car.

Car 1. Cost 36,000. Deposit 4k. Monthly 480. GMFV 14,000. Actual value 20,000.
Car 2. Cost 42,000. No Deposit. Monthly 555. GMFV 16,000. Actual value 25,000.

The dealer is making money on the sale of the new car, sale of old car, and I would think VW bank gives the dealer a fee for signing up the buyer to finance.
Despite the zero rate, there's long term value to VW bank.

The J Stands for Jay

EndaHonesty wrote: »

My car will be worth around 25,000, not 16,000.

I only paid a deposit on the first car.

Car 1. Cost 36,000. Deposit 4k. Monthly 480. GMFV 14,000. Actual value 20,000.
Car 2. Cost 42,000. No Deposit. Monthly 555. GMFV 16,000. Actual value 25,000.

The dealer is making money on the sale of the new car, sale of old car, and I would think VW bank gives the dealer a fee for signing up the buyer to finance. Despite the zero rate, there's long term value to VW bank.

Does the PCP run for three years? So you've paid €41,260, and now you need to pay €16k to keep a car worth €25k?

EndaHonesty

McGaggs wrote: »

Does the PCP run for three years? So you've paid €41,260, and now you need to pay €16k to keep a car worth €25k?

I'll have paid 41,260 for 2 cars over 6 years. Car 1: 4,000 deposit in 2015, 480 per month for 3 years (17,280) & Car 2: 555 per month for 3 years (19,980)

I won't keep the car. I'll change it for a new one in September 2021 and keep paying my monthlies...

The J Stands for Jay

EndaHonesty wrote: »

I won't keep the car. I'll change it for a new one in September 2021 and keep paying my monthly's...

This seems to make sense. You've decided you want to drive new cars and are comfortable with leasing. The PCP thing is working out for you in terms of the deposit

Jacovs

Got my letter from AIB today. Final payment due early february 2021. Have to give them 30 days notice what I intend to do. 6 months to make a decision.

Return car
Pay remaining balance and keep car
Trade in

L-M

steirishrover wrote: »

Is it to just check credit history or something? Or prove my identity

As mentioned it’s part of the new CCR which you can read more on here

https://www.centralcreditregister.ie/

So basically if you stop paying for that couch you bought from Harvey Norman’s, it’ll show up now.

Lantus

L-M wrote: »

As mentioned it’s part of the new CCR which you can read more on here

https://www.centralcreditregister.ie/

So basically if you stop paying for that couch you bought from Harvey Norman’s, it’ll show up now.

Buying a new couch on credit! Don't they know how much it depreciates.

RurtBeynolds

Are any dealers doing 0% deals at the minute? A few are advertising 'from' 0% but 0% is no where to be seen when you get into their website.

Wildly Boaring

RurtBeynolds wrote: »

Are any dealers doing 0% deals at the minute? A few are advertising 'from' 0% but 0% is no where to be seen when you get into their website.

Seat have a couple of models.
Ibiza and old Leon

Had more 2 weeks ago
Tarraco

Rest mainly at 1.9%

Decoda

A quick google shows VW have 0% PCP deals on a number of models, Passatt, Tiguan etc....

NIMAN

0% is always on selected models, and by the law of averages, never the model you want.

ForestFire

NIMAN wrote: »

0% is always on selected models, and by the law of averages, never the model you want.

Got both the last cars and current car on 0% finance. Maybe I'm just lucky :-)., or tight! Or VW bank has more offers......

Skoda octavia Estate, which was about 6 months before the face life model , but I actually prefer the pre facelift look, especially with xenon lights, and it had the 1.2tsi over the 1.0 tsi.

Current car is 1 year old Seat Leon estate, which came with 0%, and got addition discount, on top of best trade in offer received across garages, due to scrappage they were running at the time.

Upgraded as much as I could, including digital cockpit, beats audio, driver assist and adaptive cruise control. Also went with the 1.5 dsg which basically gives me cruise control to full stop.l.

With the combo of estate and 1.5 Dsg engine, it could be one of a kind in Ireland as there was no "delivery code" to load it on the transport truck.??

Very happy with it anyway, and the extras I added keeps it modern enough over the newly released version this year.....

CoBo55

ForestFire wrote: »

Got both the last cars and current car on 0% finance. Maybe I'm just lucky :-)., or tight! Or VW bank has more offers......

Skoda octavia Estate, which was about 6 months before the face life model , but I actually prefer the pre facelift look, especially with xenon lights, and it had the 1.2tsi over the 1.0 tsi.

Current car is 1 year old Seat Leon estate, which came with 0%, and got addition discount, on top of best trade in offer received across garages, due to scrappage they were running at the time.

Upgraded as much as I could, including digital cockpit, beats audio, driver assist and adaptive cruise control. Also went with the 1.5 dsg which basically gives me cruise control to full stop.l.

With the combo of estate and 1.5 Dsg engine, it could be one of a kind in Ireland as there was no "delivery code" to load it on the transport truck.??

Very happy with it anyway, and the extras I added keeps it modern enough over the newly released version this year.....

You really need the electric handbrake to complete the ACC/DSG combo. What's it like on petrol? I'm getting such mixed reviews on fuel figures with the 1.5. The digital cockpit is fantastic it transforms the car.

FintanMcluskey

EndaHonesty wrote: »

Dropping 20,000 savings on a secondhand car and keeping it for 3 years, is still 555 euro per month. (20000/36 = 555)

I have a brand new 42,000 car for 3 years, for 555 euros per month. And I still have my 20,000 in the bank.
It's my second PCP car and my only deposit was 4k on the first one.

Cars are expensive, no matter what way you finance them. Wanting to own an depreciating asset by depleting your savings is mad, IMO.

Fully agree here. While I haven't had a requirement to worry about car finance for many years as I have a company car I fully agree with your sentiment.

Its depreciating either way.

A PCP bregrudgury exists, where people are bragging about driving a 25 year old Toyota's to feed cattle half a mile down the road, while laughing at someone commuting to a city centre to work.

ForestFire

CoBo55 wrote: »

You really need the electric handbrake to complete the ACC/DSG combo. What's it like on petrol? I'm getting such mixed reviews on fuel figures with the 1.5. The digital cockpit is fantastic it transforms the car.

Yes comes with electronic handbrake with auto hold, and it's great in all kinds of traffic, never really have to touch the handbrake system. All automatic.

Will need to check fuel comsuption figures on the on board computer, but moved to within 5km of work recently, and with that and the Covid lock down means my milage at 12months was just under 10, 000 km.

Bass Reeves

FintanMcluskey wrote: »

Fully agree here. While I haven't had a requirement to worry about car finance for many years as I have a company car I fully agree with your sentiment.

Its depreciating either way.

A PCP bregrudgury exists, where people are bragging about driving a 25 year old Toyota's to feed cattle half a mile down the road, while laughing at someone commuting to a city centre to work.

It not bergrudgery it rather about life choices. Everybody makes them. However some consider that constantly buy items by using debt is not an ideal option.

These choices decide whether you can afford to put your children through college, if you still end up working into your late sixties. It also decisions like this that decide your ability to buy a house or fund a trip to Disneyland in Florida with the children

shanec1928

CoBo55 wrote: »

You really need the electric handbrake to complete the ACC/DSG combo. What's it like on petrol? I'm getting such mixed reviews on fuel figures with the 1.5. The digital cockpit is fantastic it transforms the car.

ive the 1.5 in manual in a hatch back Leon and I find it fairly good on Petrol. Wintertime I was averaging 6l/100km doing Sligo to Dublin and I’d have a very very heavy right foot.

Drifter50

FintanMcluskey wrote: »

Fully agree here. While I haven't had a requirement to worry about car finance for many years as I have a company car I fully agree with your sentiment.

Its depreciating either way.

A PCP bregrudgury exists, where people are bragging about driving a 25 year old Toyota's to feed cattle half a mile down the road, while laughing at someone commuting to a city centre to work.

Don`t get you here, what is PCP begrudgury ? If you want to buy and drive a new car carry on. If like me you are happy with an 07 jeep we can both co exist without making faces at each other

L-M

Drifter50 wrote: »

Don`t get you here, what is PCP begrudgury ? If you want to buy and drive a new car carry on. If like me you are happy with an 07 jeep we can both co exist without making faces at each other

He didn’t say everyone who doesn’t have PCP begrudges it, just that it exists, which it does.

DrBass

Jacovs wrote: »

Got my letter from AIB today. Final payment due early february 2021. Have to give them 30 days notice what I intend to do. 6 months to make a decision.

Return car
Pay remaining balance and keep car
Trade in

Is financing the balloon payment for an extra 2 years also an option?

I'm about halfway through my PCP on an Octavia. I think we'll just try and pay the balance at the end and keep the car. Does anyone know is it possible to buy an extended warranty at the end of a PCP deal if you keep the car?

is_that_so

With COVID coming in at the end of PCP I opted to buy it out. On reflection, now a less attractive option as the monthly payments have spiked. Granted that means a lower balloon but you have to get through 36 months of higher outlay first. It was a great option for a long while but needs some careful thought before signing up to new plans.

Jacovs

DrBass wrote: »

Is financing the balloon payment for an extra 2 years also an option?

Not listed as 1 of the 3 options given by the bank.
Suppose you would have to apply for a personal loan as a separate agreement to the PCP.

is_that_so

DrBass wrote: »

Is financing the balloon payment for an extra 2 years also an option?

It might be but consider a chat with the CU as well. They'll welcome borrowers as everyone is just saving!