PCP finance.

Best way to find out if they'll accept a card is to ask them. I would be surprised if they didn't. After that a bank transfer is the most convenient way, except you will have to wait until their accounts department confirms the payment goes through. This will be at worst next working day.

Thanks for the replies guys, seems there is a 2% charge for using card and also a daily limit of €2,500 for me. Bank draft it is!

TiltedBrain wrote: »

My approval too was based on pay slips, nothing to do with whether I borrowed money before.

Had 30% deposit in the form of trade in thou

When I decided to pop in to Seat to find out more and if they even had the car I wanted, we sat down and applied for the finance. We didnt even had agreed deal or anything. Then we went to test drive a car, wasnt even the car I wanted, but was closesed to the real thing.
After we came back from test drive he checked his pc and told me that I was approved for finance. I only needed to bring my passport and prove of adress, thats it. I have to admit I was surprised. I knew my credit history is pretty good, but it was the biggest finance deal I applied for.

ShadowHearth wrote: »

When I decided to pop in to Seat to find out more and if they even had the car I wanted, we sat down and applied for the finance. We didnt even had agreed deal or anything. Then we went to test drive a car, wasnt even the car I wanted, but was closesed to the real thing.
After we came back from test drive he checked his pc and told me that I was approved for finance. I only needed to bring my passport and prove of adress, thats it. I have to admit I was surprised. I knew my credit history is pretty good, but it was the biggest finance deal I applied for.

Mine too was with SEAT, (VW Bank)

Micky 32 wrote: »

Same here, i was approved with no request for statements etc. Just ID and a utility bill. Then the next car i bought it was approved straight away once thedetails were put in. I could have told them i was making 10k a week. Vw never even asked for proof.

Beginning to think they just didn't like me haha

Pelvis wrote: »

Ya wha??

The vast majority of people I know can't even get into college, myself included, and the people I know who have gotten a degree have said it wasn't easy, so fair play to people with them. A few people I know dropped out. Could be different for you and the people you know though, just saying fair play for him for working hard for himself. Hopefully he gets a car sorted

Doddles88 wrote: »

So I had agreed a deal with VW for a new car being delivered 2018. Everything signed, deposit down and car ordered. It was agreed I would be financing it through PCP. They asked for statements etc etc which I provided. They subsequently came back requesting a guarantor because I had no previous credit history (even though through my bank statements and payslips it shows that I can easily cover the monthly repayments). This was reluctantly agreed to by myself because I just feel I am old enough not to need help from my parents but anyway I got them to be guarantor. VW Bank then came back requesting that the repayments would be taken out of my Dad’s account as opposed to my own. Basically as if my Dad was the one getting the car financed. So hypothetically after 3 years if I was looking to trade in for a new PCP I still would have no credit history because the previous loan was in my Dad’s name.

Am I right in thinking this is rather unfair. I would have thought no previous debt and a proven ability to comfortably cover the repayments would be the ideal situation for these places? Should I expect the same conditions if purchasing a different brand?

Maybe your bank statements didn’t demonstrate any capacity to take on a commitment. Do you have savings or a build up of credit funds in the account? If you spend all your money every month (which your entitled to do) and you have no ICB profile; then that’s not a strong risk profile, and I would agree with their decision. Save/build up some cash for c6 months then try again.

Surely it must be down to the higher value car putting the figures too close to what they would deem dodgy territory. There is a significant cost difference in financing a next to new A6 versus a Seat Ibiza.

Actually it was a 15 A6 not a 16 as my other post suggests.

Car was 39k I was putting near enough 30% down, the finance amount was under 30k.
The finance amount for the Ibiza was 17k.
Yes A bit of a difference :-P

But still the way they were handled were
Totally different.
I don’t think I gave any paper work for the Ibiza, just my bank account number.

And the dealer actually got me finance through another company for the full amount.

micks_address wrote:

Has anyone done any figures on whether it's better to change every one, two or three years with PCP?

Changing after 1 year isn't really feasible as I understand it as a new car devalues sharply in the first year and repayments won't of matched this. Of course you can do it but equity in the vehicle would likley be zero or even negative.

2 years is very feasible however.

TheShow wrote: »

Maybe your bank statements didn’t demonstrate any capacity to take on a commitment.  Do you have savings or a build up of credit funds in the account?  If you spend all your money every month (which your entitled to do) and you have no ICB profile; then that’s not a strong risk profile, and I would agree with their decision.  Save/build up some cash for c6 months then try again.

As I said before repayments are around 13% of my net income. I'm car mad so wouldn't really spend big on other things during the year except maybe a holiday in the summer. Bank statements clearly demonstrate my ability to comfortably make the repayments. You are correct though, the fact I have never been in debt before means I have no history at all with the ICB( I requested a credit history statement and it confirmed this). I also have the majority of the deposit saved in accounts with 3 months pay still to collect.
I haven't let it lie, I went direct to VW Bank and looked for them to reconsider their decision. They confirmed what the dealer had said that it is my lack of a credit history which makes me too much of a risk. They have since requested some further documents and I am hopeful/confident it will be resolved soon. Fingers Crossed!

micks_address wrote: »

Yes I'm wondering when say the cost of new tyres and extra servicing costs might come into play. I'm doing about 28k km per year. The interest rate on the PCP also comes into play I suppose. I'm currency on 0% with vw bank with 3 services included.

Its impossible to know when you get the best deal, but I would have to agree to wait at least 2 years. I traded mine in 2 years 4 months and I think I did okay.

I don't think the servicing costs will have any impact on it. I think you probably would have been better off paying for that seperately

The biggest issue you will have is mileage, you are doing over twice the average annual mileage. Bottom line you will get a trade in value based on mileage and condition, including tyres. It all depends on the market at the time.

There are very few who would trade in every 2 years in the times before pcp.
New car depreciation has not improved in recent times. It is still frightfully expensive to be buying new cars every 2 years. The costs are somewhat hidden but they are still there.
If you want a car every 2 years fair enough but it's unlikely to be the best value.