How did PCP work out in the end?

photosmart · 13-01-2018 9:28am #1

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...

Lekrub · 13-01-2018 6:31pm

Will be interesting to see this. It's gonna go eithier

A: It didn't work out as you planned? You're f*ucked now and we told you so

B: Everything worked out fine, I told ye old fashioned bastards it would be

Rusky rusky · 13-01-2018 6:52pm

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.

Rackstar · 13-01-2018 6:53pm

Rusky rusky wrote: »

Car Type: VW Golf CL 1.2 TSI M6
Price: 23300 ( excl interest)
Deposit: 10%
Trade in offered after three years: 18000
Mileage under 45k km

Pretty good deal me thinks.

18k trade in, that's incredible.

Blazer · 13-01-2018 6:55pm

I call bull**** on that. No way is a 3 year old golf only depreciating 5k unless the interest was 7% or higher.

Rusky rusky · 13-01-2018 6:55pm

Rackstar wrote: »

18k trade in, that's incredible.

Skoda offered 15k against Octavia, so golf estate 1.0 dsg it is:)

Rusky rusky · 13-01-2018 6:57pm

Blazer wrote: »

I call bull**** on that. No way is a 3 year old golf only depreciating 5k unless the interest was 7% or higher.

New golf is ordered against this trade in, so no bull****. I have an official finance quote from VW garage. Interest was 2.9% will be 0.9% on a new one.

Blazer · 13-01-2018 6:59pm

is the new one higher specced?
If not that's some deal.

Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.

Rusky rusky · 13-01-2018 7:04pm

Blazer wrote: »

is the new one higher specced?
If not that's some deal.

Yes, the new one is HL, DSG and an estate so I will buy it at the end of the next PCP but ultimately I’ll have 2 new cars over 6 years for the price of one. Obviously I won’t get the same deal twice:)

Rusky rusky · 13-01-2018 7:15pm

Blazer wrote: »

is the new one higher specced?
If not that's some deal.

Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.

I guess petrol golfs are scarce, no competition from the second hand ones being brought from the uk. On the other hand the dealer could take a small hit when selling secondhand car but I’m buy a more expensive new one so I guess it balances out. And tbh, the salesman was very generous:)

colm_mcm · 13-01-2018 8:07pm

When are you picking up the new one?

Rusky rusky · 13-01-2018 8:11pm

colm_mcm wrote: »

When are you picking up the new one?

Some time in February. Don’t know the exact date yet.

DaveyDave · 13-01-2018 8:45pm

Blazer wrote: »

is the new one higher specced?
If not that's some deal.

Looking at carzone it appears dealers are selling 3 year golfs for 20K or so or at least trying to sell.
The whole thing just looks like a ponzi scheme ready to collapse. Who on earth is going to pay 20k for a 3 year old golf when you can get the entry level new 181 golf for the same price....nuts.

Yeah but not everyone wants a basic model car with steel wheels VS a slightly older, well looked after Highline with higher spec?

photosmart · 13-01-2018 9:21pm

Hi Rusky

Thanks for posting
Thats a serious deal alright.
Anybody else out there with info? I'm particularly interested in Skoda octavias as thats on my radar as next car - maybe on pcp

P

carsfan2 · 13-01-2018 9:39pm

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.

sword1 · 13-01-2018 10:10pm

Won't you be gaining however much the car is worth less than gfmv? If the car is worth 20k when you hand it back are you 4k better off than if you had gotten a regular loan for the car?

carsfan2 · 13-01-2018 11:15pm

sword1 wrote: »

Won't you be gaining however much the car is worth less than gfmv? If the car is worth 20k when you hand it back are you 4k better off than if you had gotten a regular loan for the car?

Yes. This is why I am not too unhappy overall.
I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

MarkN · 14-01-2018 12:38am

carsfan2 wrote: »

Yes. This is why I am not too unhappy overall.
I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

How much cash did you put in to begin?

JoeA3 · 14-01-2018 10:33am

I recently ended a PCP on a 2015 Golf R. I went in with max deposit in 2015, gfv was about 17.5k.

I had a deal done for a brand new one, which due to other circumstances I cancelled this week.

I don’t particularly want to share specific numbers publicly, as I think it’s unfair on the salesperson, but if anyone really wants to know, send me a pm. But suffice to say I was coming out with a very respectable level of equity.

I’ve gone into another pcp arrangement now with a used car with an entirely different brand. I don’t believe I’ll see the same level of equity next time round but I’ve gone into it with my eyes open. Doing the sums, it’s still the cheaper approach for me overall.

colm_mcm · 14-01-2018 10:36am

What sort of GMFV did they give on the used car?

JoeA3 · 14-01-2018 10:39am

colm_mcm wrote: »

What sort of GMFV did they give on the used car?

It’s higher, it’s about €20k.

colm_mcm · 14-01-2018 10:45am

Oh sorry, I meant as a percentage of what you were buying, I would've thought GMFV might be better than a new car because the depreciation isn't as sharp

Lantus · 14-01-2018 10:52am

carsfan2 wrote:

Yes. This is why I am not too unhappy overall. I think I will benefit in the end as I do reckon the car will be worth less than gfmv. On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv. I suppose I will benefit as I wonâ€™t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

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.

carsfan2 · 14-01-2018 10:53am

MarkN wrote: »

carsfan2 wrote: »

Yes. This is why I am not too unhappy overall.
I think I will benefit in the end as I do reckon the car will be worth less than gfmv.
On the other hand the dealer when he sold me the car told me I would have equity as he reckoned it would be worth more, a fair bit, he thought than gfmv.
I suppose I will benefit as I won’t take the full hit. I also plan to give the car back and start again as a buyer with no trade in which should enable me to get a better deal and if sterling is still weak I will get a car in uk. I am fortunate that I can take the fact there is no equity but I think a lot of people bought on pcp thinking they could roll over to a new car in three years without having to inject any capital back in and may not be in a position to do so.

How much cash did you put in to begin?

I put the max deposit that Bmw would allow in as they contribute 5k from the seai grant into the deposit too.
To be honest this is not a factor as car will still be paid down to gfmv regardless of deposit.
I think Bmw gfmv values were optimistic to begin with and now that values have fallen through the floor they are completely unrealistic.
However from my part I am glad I didn’t pay up front as I was going to do as I will be in a position to hand it back unless values suddenly improve which is extremely unlikely.

_Brian · 14-01-2018 10:54am

JoeA3 wrote: »

I recently ended a PCP on a 2015 Golf R. I went in with max deposit in 2015, gfv was about 17.5k.

I had a deal done for a brand new one, which due to other circumstances I cancelled this week.

I don’t particularly want to share specific numbers publicly, as I think it’s unfair on the salesperson, but if anyone really wants to know, send me a pm. But suffice to say I was coming out with a very respectable level of equity.

I’ve gone into another pcp arrangement now with a used car with an entirely different brand. I don’t believe I’ll see the same level of equity next time round but I’ve gone into it with my eyes open. Doing the sums, it’s still the cheaper approach for me overall.

Why is it unfair on the sales man when your not naming nor identifying them ?? Surely it Benitez’s punters to get a good idea how it’s worked out for people.

JoeA3 · 14-01-2018 10:54am

colm_mcm wrote: »

Oh sorry, I meant as a percentage of what you were buying, I would've thought GMFV might be better than a new car because the depreciation isn't as sharp

Even though the “new” car I’ve bought is quite a bit cheaper than the new R I was intending to buy, the new R wasn’t going to cost me a huge amount much more in terms of finance. VW were doing sub 1% APR deals, deposit contributions, etc. Which you do not get anything like on used cars and especially used non VW’s. Even used VW’s, the Apr is up on 5% or more.

JoeA3 · 14-01-2018 10:57am

_Brian wrote: »

Why is it unfair on the sales man when your not naming nor identifying them ?? Surely it Benitez’s punters to get a good idea how it’s worked out for people.

I’m not getting into a debate about it. I’ve told you the equity was very healthy and I was getting into a new R for little outlay, so the sums aren’t too hard to work out if you really want to.

mickdw · 14-01-2018 11:03am

JoeA3 wrote: »

I’m not getting into a debate about it. I’ve told you the equity was very healthy and I was getting into a new R for little outlay, so the sums aren’t too hard to work out if you really want to.

The deals must be really superb when people are starting to consider the salesmans feelings.
If only a salesman acted in a similar fashion.

JoeA3 · 14-01-2018 11:11am

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.

mloc123 · 14-01-2018 11:19am

I look forward to a conversation in two years time when they tell me my Superb 280 is worth less than a TDI... "Sure who would want a petrol one?"

I am pretty sure I'll just pay the final balloon and keep it tho.

Ionised · 14-01-2018 11:30am

Changed from a Polo BlueGT to Cupra 300 last July.
Polo was on PCP at 0% with 6 months left to run. GMFV plus what was left on finance was 14.5k and Seat gave me 18k as trade which I felt was OK on the original price of 24k for the Polo.

Refinanced on a new PCP at 0% again.

Ionised · 14-01-2018 11:33am

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!

colm_mcm · 14-01-2018 12:23pm

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

Avatar MIA · 14-01-2018 12:30pm

colm_mcm wrote: »

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

You know it wont end well?

TheBigEvil · 14-01-2018 12:41pm

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

Ionised · 14-01-2018 12:50pm

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.

tedpan · 14-01-2018 2:24pm

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.

carsfan2 · 14-01-2018 2:26pm

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.

carsfan2 · 14-01-2018 2:30pm

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.

mickdw · 14-01-2018 6:08pm

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.

photosmart · 14-01-2018 6:15pm

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

MidMan25 · 14-01-2018 6:25pm

Rusky rusky wrote: »

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

MarkN · 14-01-2018 7:38pm

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.

Dakota Dan · 14-01-2018 7:46pm

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?

tedpan · 14-01-2018 7:52pm

Dakota Dan wrote:

What did you pay on the loan?

Interest?

antiskeptic · 14-01-2018 8:04pm

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.

jca · 14-01-2018 8:05pm

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..

FaganJr · 14-01-2018 8:41pm

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!!

14-01-2018 8:58pm

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.

MarkN · 14-01-2018 8:59pm

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.

jca · 14-01-2018 9:03pm

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?

How did PCP work out in the end?

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