How did PCP work out in the end?

photosmart

Anyone got any details on PCP as per original post

ie bought skoda for x, paid y per month for three years and was then offered tradein etc...

Reason is that will allow people to get an idea of real costs from people who've actually ran with PCP etc...

DaveyDave

Top Dog wrote: »

An Post are doing better rates than our local CU

They're only offering 5.9% for loans over €20k so for clearing PCP it probably isn't much use to most people. My balloon payment is €11,100 which is 9.9-13.5%. I'm with KBC and they're 6.3% for account holders and VW are 5.9%.

It's hard to beat VW Bank for PCP. €6,500 deposit, €11,500 at 0% and €11,100 at 5.9% for 2 years. Cost of credit is less than €722 (I used a loan comparison website at 6.3% but close enough). Total cost is €29,833 for my Golf.

Interestingly, PCP on a Hyundai i30 that's €26,100. A €6,100 deposit, €20,000 at 5.9% is €29,158 total over 5 years (using slightly less deposit to get 5.9% on a calculator, this also assumes 5.9% for the refinance but could be higher).

My figures are off a bit to get 5.9% on a calculator and everyone's scenario will be different as these are figures for keeping the car but it's interesting to see how 'low' interest rates still add a significant cost to a car to the point something like a more budget friendly Hyundai can cost similar to a car that some would see as overpriced.

CoBo55

DaveyDave wrote: »

They're only offering 5.9% for loans over €20k so for clearing PCP it probably isn't much use to most people. My balloon payment is €11,100 which is 9.9-13.5%. I'm with KBC and they're 6.3% for account holders and VW are 5.9%.

It's hard to beat VW Bank for PCP. €6,500 deposit, €11,500 at 0% and €11,100 at 5.9% for 2 years. Cost of credit is less than €722 (I used a loan comparison website at 6.3% but close enough). Total cost is €29,833 for my Golf.

Interestingly, PCP on a Hyundai i30 that's €26,100. A €6,100 deposit, €20,000 at 5.9% is €29,158 total over 5 years (using slightly less deposit to get 5.9% on a calculator, this also assumes 5.9% for the refinance but could be higher).

My figures are off a bit to get 5.9% on a calculator and everyone's scenario will be different as these are figures for keeping the car but it's interesting to see how 'low' interest rates still add a significant cost to a car to the point something like a more budget friendly Hyundai can cost similar to a car that some would see as overpriced.

I couldn't see Hyundai refinance being 5.9%.
Have you heard anything from VW yet?

Top Dog

DaveyDave wrote: »

They're only offering 5.9% for loans over €20k so for clearing PCP it probably isn't much use to most people. My balloon payment is €11,100 which is 9.9-13.5%. I'm with KBC and they're 6.3% for account holders and VW are 5.9%.

I wasn't trying to say they're the best option, just that in some cases they're a better option than a credit union

I agree that for clearing a sub-20k pcp balloon they're not as good as VW bank, but they're better than some credit unions, and possibly some banks too.

Brusna

photosmart wrote: »

Anyone got any details on PCP as per original post

ie bought skoda for x, paid y per month for three years and was then offered tradein etc...

Reason is that will allow people to get an idea of real costs from people who've actually ran with PCP etc...

I can’t say how it worked out in the end as I only recently entered a PCP but what I can say is what I’m doing to deal with the actual costs of going with PCP.

So my car cost 36k, I paid the max allowable deposit 35% = €12,600, the final payment in also 35% so that leaves me with 30% for the monthly’s over 36 months at 0% interest = €300 per month.

I’m budgeting for 50% depreciation over the 3 years so I need to allow for 50% of the car cost over 3 years, that’s 18k over 36 months = €500 per month.

So €300 is going to the finance company and €200 is going into a savings account to be used at the end of the PCP deal.

When the PCP ends I will have 20%, 36 x €200, €7200 in the bank to be used against paying a deposit on another car along with the 15% equity I’m budgeting for which will give me 35% deposit allowing me to go again with a similar deal.

If I decide to keep the car the money goes towards the final payment and that leaves me with having to get finance for 15% of the cost of the car which should be paid off in about another 11/12 months at the same €500 per month.

If my estimation on the depreciation is out I will deal with that when the time comes.

To sum up if I can afford monthly’s equal to 50% of total car cost divided by 36 I should be fairly ok when I get to the end of the PCP.

Mickiemcfist

That's the way PCP should be done, eyes open, money aside, zero % interest. Lovely.

CoBo55

Mickiemcfist wrote: »

That's the way PCP should be done, eyes open, money aside, zero % interest. Lovely.

Most on this thread know what's required.

youcancallmeal

I just paid the balloon(€12,5800) on a Skoda Superb last week. I had €6,580 saved and got credit union loan for 6k. Can't remember the exact figures but I paid around 7k deposit which was a trade-in plus cash. Monthly payment was €402 at 0%. I was expecting a call from the garage to enquire about entering another PCP but all I got was an automated text message 6 months ago. I had decided about a year ago I was going to keep it. The car has been rock solid and will keep it for another 3/4 years and hopefully go hybrid or full electric then.

In retrospect I should have saved an extra €150 a month over the 3 years and would have been able to clear the balloon without a cu loan. I wasn't sure though when I got the car whether I'd want to trade it in and do a PCP again

Casati

youcancallmeal wrote: »

I just paid the balloon(€12,5800) on a Skoda Superb last week. I had €6,580 saved and got credit union loan for 6k. Can't remember the exact figures but I paid around 7k deposit which was a trade-in plus cash. Monthly payment was €402 at 0%. I was expecting a call from the garage to enquire about entering another PCP but all I got was an automated text message 6 months ago. I had decided about a year ago I was going to keep it. The car has been rock solid and will keep it for another 3/4 years and hopefully go hybrid or full electric then.

In retrospect I should have saved an extra €150 a month over the 3 years and would have been able to clear the balloon without a cu loan. I wasn't sure though when I got the car whether I'd want to trade it in and do a PCP again

If you can clear that remaining loan in a year you’ll have a 4 year old Superb probably still worth north of 15k with loads of life left in it

Car99

Casati wrote: »

If you can clear that remaining loan in a year you’ll have a 4 year old Superb probably still worth north of 15k with loads of life left in it

Roughly €34500 total cost of vehicle over 4 years . 5k depreciation a year. €420 euro a month. Not bad.

ForestFire

Mickiemcfist wrote: »

That's the way PCP should be done, eyes open, money aside, zero % interest. Lovely.

The only slight thing I would change is the high initial deposit, only due to the fact that this is a 0% PCP.

- max allowable deposit 35% = €12,600

I would have put in the minimum deposit (let's say 5K) and went with higher monthly payments. You can use the rest of the initial deposit (12500-5000 = 7500), to top up the monthlies if required.

It's a small thing, but to keep your money in your bank/savings as long as possible, earning that "Higher" interest rates on offer:):rolleyes:

Again to be clear this only applies to 0% PCP, and you need some discipline to keep your savings intact.

ShadowHearth

Brusna wrote: »

I can’t say how it worked out in the end as I only recently entered a PCP but what I can say is what I’m doing to deal with the actual costs of going with PCP.

So my car cost 36k, I paid the max allowable deposit 35% = €12,600, the final payment in also 35% so that leaves me with 30% for the monthly’s over 36 months at 0% interest = €300 per month.

I’m budgeting for 50% depreciation over the 3 years so I need to allow for 50% of the car cost over 3 years, that’s 18k over 36 months = €500 per month.

So €300 is going to the finance company and €200 is going into a savings account to be used at the end of the PCP deal.

When the PCP ends I will have 20%, 36 x €200, €7200 in the bank to be used against paying a deposit on another car along with the 15% equity I’m budgeting for which will give me 35% deposit allowing me to go again with a similar deal.

If I decide to keep the car the money goes towards the final payment and that leaves me with having to get finance for 15% of the cost of the car which should be paid off in about another 11/12 months at the same €500 per month.

If my estimation on the depreciation is out I will deal with that when the time comes.

To sum up if I can afford monthly’s equal to 50% of total car cost divided by 36 I should be fairly ok when I get to the end of the PCP.

Thats pretty much exactly what I did over 3 years ago. Went in with almost max deposit 6k eu, 0% apr with 272eu monthly payments, and 8500eu balloon.

The day I took my car i opened savings account and started putting 50eu a week there, later 70eu, when I got a bump in my wages. Planned to change car around March ( Pcp 3 year term was ending in July ) and already had 10k eu in my car savings account. Covid hit, and all went to hell. So decided pay off balloon and keep my car. It did not made any burden on my finances, because as much as I was concerned, that savings account was only for my car.

So what you doing is the smartest way to approach PCP deal and taking advantage of low or 0% apr. Plus, you covering yourself in worst case scenario, which I personally experienced. I wish more people would do that, instead of going for PCP and after 3 years its going to be "future me" problem.

If you don't over extend your financial situation with PCP, it leaves plenty of room, to put away extra cash for ballon/upgrade, because pcp monthly payments are small.

Even now, when my car is payed off, I keep putting away some money in to my "car account", because when this covid bull**** goes away, I will be looking to upgrade.

CoBo55

Looks like most are paying off the balloon and keeping the car. I'll have the 12k to pay off the loan when my PCP ends in June 2022 I won't need to refinance, I think just pay it off and maybe wait until 23 and change then.

Mickiemcfist

CoBo55 wrote: »

Most on this thread know what's required.

No need for a thread so.

CoBo55

Mickiemcfist wrote: »

No need for a thread so.

Apt username...

Brusna

ForestFire wrote: »

The only slight thing I would change is the high initial deposit, only due to the fact that this is a 0% PCP.

- max allowable deposit 35% = €12,600

I would have put in the minimum deposit (let's say 5K) and went with higher monthly payments. You can use the rest of the initial deposit (12500-5000 = 7500), to top up the monthlies if required.

It's a small thing, but to keep your money in your bank/savings as long as possible, earning that "Higher" interest rates on offer:):rolleyes:

Again to be clear this only applies to 0% PCP, and you need some discipline to keep your savings intact.

I didn’t have that option as the deposit was covered by the trade in but it’s a good point.

Mickiemcfist

CoBo55 wrote: »

Apt username...

Oh no my feelings

lawred2

Who's doing 0% at the moment? Our current PCP is coming to an end shortly!

Wildly Boaring

lawred2 wrote: »

Who's doing 0% at the moment? Our current PCP is coming to an end shortly!

Seat on several models

CoBo55

lawred2 wrote: »

Who's doing 0% at the moment? Our current PCP is coming to an end shortly!

Skoda have a few on 0% VW also have some.

caddy16

lawred2 wrote: »

Who's doing 0% at the moment? Our current PCP is coming to an end shortly!

Skoda have 0%, extended to December on a lot of models.

Seriously considering taking the plunge on a new Kodiaq and the 0% might push me over the line.

Can anyone point me in the direction as to what impact VRT changes have on the Kodiaq 1.6 diesel from January?

bazz26

The bigger question is why would anyone want a weedy little 1.6 diesel engine in a big bus like a Kodiaq?

caddy16

bazz26 wrote: »

The bigger question is why would anyone want a weedy little 1.6 diesel engine in a big bus like a Kodiaq?

Really helpful post....

CoBo55

caddy16 wrote: »

Really helpful post....

I don't think you can get the 1.6 in the Kodiak, engine/transmission choices are very limited across the Skoda range atm

L-M

You can’t get a 1.6.

They went up in price depending on the model anywhere from €1,500 plus

caddy16

L-M wrote: »

You can’t get a 1.6.

They went up in price depending on the model anywhere from €1,500 plus

You're right thanks - has increase already come in to effect?

L-M

caddy16 wrote: »

You're right thanks - has increase already come in to effect?

No from 1st Jan but you’d lose a lot more if you registered it this year just to save €1,500, your car would be a year older and thus be worth 4/5 k less in 3 years.

CoBo55

L-M wrote: »

You can’t get a 1.6.

They went up in price depending on the model anywhere from €1,500 plus

Some of those Kodiak's are going to be in the high tax brackets too.

DaveyDave

Email from VW today for the remaining €11,100 on my Golf, currently paying €322.19. I'll probably go with 24 months.

12 months:
1 payment of 1,016.97
10 payments of 941.97
1 payment of 1,016.97
APR 6.1%

24 months:
1 payment of 559.63
22 payments of 484.63
1 payment of 559.63
APR 6%

36 months:
1 payment of 407.35
34 payments of 332.35
1 payment of 407.35
APR 6%

caddy16

CoBo55 wrote: »

Some of those Kodiak's are going to be in the high tax brackets too.

Is it possible some will be coming down? From what I can see online it falls in to the below bracket.



141 - 150g/km: €270 per annum