Is this PCP right?

daheff

Looking at the PCP offer for new Hyundai Kona and something doesnt add up for me

Price 20,995
Deposit 7,348
Finance 14,497
GMFV 8,188
36 monthly payments 229
total credit 2,016.43

So by my calcs the financed amount should be (20,995-7,348)=13,647 not 14,497

Cost of credit should be 2,785 and not 2,016.43
total monthly payments (229*36) =+8,244
Plus deposit =+7,348
Plus GMFV =+8,188
Minus Price =-20,995
=23,780-20,995=2,785


anybody care to tell me how I'm calculating these wrong?



Edit: Just for clarity, I'm not trying to catch anybody out or complain to hyundai/asai if this is wrong. I'm merely trying to work out figures to see if its cheaper in the long run to buy the petrol or BEV version of this car.


thanks!

R.O.R

OSI wrote: »

The relevant part on that page:

Difference between price less deposit and financed amount is €850 - sounds like the delivery charge to me, so the amount financed is €14,497.

Lobbing those figures in to my lease calculator is giving me €231.90 per month as the payment inc. VAT, so it's there or thereabouts.

daheff

R.O.R wrote: »

Difference between price less deposit and financed amount is €850 - sounds like the delivery charge to me, so the amount financed is €14,497.

Lobbing those figures in to my lease calculator is giving me €231.90 per month as the payment inc. VAT, so it's there or thereabouts.

Yeah i figured they are throwing something else into the price...but effectively they are then advertising a PCP rate that's unobtainable (unless you can find a dealer who will organise for you to pick up the car at the port!!)


Thanks


Edit -cost of credit still doesnt add up?

ShadowHearth

Cost of credit sounds very high for amount borrowed. Whats apr?

colm_mcm

ShadowHearth wrote: »

Cost of credit sounds very high for amount borrowed. Whats apr?

5.9%

Jimmy.

I imagine pcp is getting the ride but it’s your cousin. Colm?

colm_mcm

You’ve lost me.

R.O.R

daheff wrote: »

Yeah i figured they are throwing something else into the price...but effectively they are then advertising a PCP rate that's unobtainable (unless you can find a dealer who will organise for you to pick up the car at the port!!)


Thanks


Edit -cost of credit still doesnt add up?

Finance amount is including delivery

€20,995 (price) - €7,348 (deposit) + €850 (delivery charge) = €14,497

I can't get the cost of credit to add up either...

€229 x 36 = €8,244
Depreciation is €14,497 - €8,188 = €6,309
Cost of credit = €8,244 - €6,309 = €1,935

Says it's a 37 month agreement though, but still doesn't stack up:

€229 x 37 = €8,473
€8,437 - €6,309 = €2,164

nim1bdeh38l2cw

Too early for working figures out in my head, but aren't there documentation fees at each end?

CeilingFly

Why go pcp?

Above is showing full rrp, no great offer on finance and locks you in.


Finance it with a standard car loan (6.75%) haggle the price, pay over 4 years. 15k over 4 years is about €350 and I would suspect you would get the car for under 20k delivered.

If you have a trade in - sell it privately or at auction - at auction you will get at least the same value as the dealer when you calculate in the cash discount.

Personally I think pcps are very poor value and skewed entirely in favour of the dealer - hence there will never be a pcp financial crisis for the dealers.

CeilingFly

OSI wrote: »

How do you figure there's no discount to be had on the PCP price? You realise it's just an example and not a definitive final and fixed price.

I was going by the OP and even with a discount, a pcp does not represent any special value over standard car loans unless its a very low interest rate.

daheff

thanks all

whether i go with pcp, bank loan or cash is another days argument

I started off comparing between petrol & ev models of this, but now I'm evaluating between costs of a number of cars. using pcps as a tool to get a guaranteed value of car in 3 years.


But this pcp just looked wrong when i saw it.

It looks to be butchered to show as low a monthly figure as possible.

ShadowHearth

daheff wrote: »

thanks all

whether i go with pcp, bank loan or cash is another days argument

I started off comparing between petrol & ev models of this, but now I'm evaluating between costs of a number of cars. using pcps as a tool to get a guaranteed value of car in 3 years.


But this pcp just looked wrong when i saw it.

It looks to be butchered to show as low a monthly figure as possible.

Pcp is a great way to finance car if you have at least some common sense. You looking at figures and asking questions is already more then majority of people do. Specifically those people who took on cars, they could not afford in the first place. Everyone will be at fault, but not them.
Thing is with pcp is to look for zero or very low apr. 5.9% is very high for pcp deals. That 2k for finance really adds up. One way or another you will be smart to have a separate savings account to put away few quid when 3 year term is up. No way you will sit in to new car after 3 years without spending a few quid. Or if you will decide to buy it, it will help with balloon payment.