How did PCP work out in the end?

Not really a pcp issue but I get your point re someone wanting to just jump into the same car again yet they need to come up with more money even if they get equity similar to original deposit back. On the flip side, there are contributions on offer to take up some of the slack.
I actually think I like where the pcp boom and the sterling rates are pushing the manufacturers. A few years back I would look towards uk ads and see that nobody was paying retail price while we were paying far too close to retail. At least now, every manufacturer has an offer on and its only moving further in that direction. Ive said it before but I believe we are heading quickly towards private lease deals where there is no proposed equity or anything else at end just a payment based on low deposit and hand back.
In the uk, bmw are typically doing 3 or 6 months payment as deposit and then monthly with hand back at the end. They are often hiding massive discount in those deals specially on stuff like 7 series. I think seeing how equity in bmws in burning customers big time, they will have to go that way.
So maybe 6 x €450 deposit on a 3 series and €450 per month - that would be 19k paid for a 3 series for 3 years, shouldnt be a million miles away with suitable discount etc. I cant see how bmw will sell cars to returning customers otherwise. This will also give certainty to customer and they will know they will need a small deposit again and not be shocked like they currently are when trying to trade in expecting 10k in equity only to be told its actually zero.

mickdw wrote: »

Not really a pcp issue but I get your point re someone wanting to just jump into the same car again yet they need to come up with more money even if they get equity similar to original deposit back. On the flip side, there are contributions on offer to take up some of the slack.
I actually think I like where the pcp boom and the sterling rates are pushing the manufacturers. A few years back I would look towards uk ads and see that nobody was paying retail price while we were paying far too close to retail. At least now, every manufacturer has an offer on and its only moving further in that direction. Ive said it before but I believe we are heading quickly towards private lease deals where there is no proposed equity or anything else at end just a payment based on low deposit and hand back.
In the uk, bmw are typically doing 3 or 6 months payment as deposit and then monthly with hand back at the end. They are often hiding massive discount in those deals specially on stuff like 7 series. I think seeing how equity in bmws in burning customers big time, they will have to go that way.
So maybe 6 x €450 deposit on a 3 series and €450 per month - that would be 19k paid for a 3 series for 3 years, shouldnt be a million miles away with suitable discount etc. I cant see how bmw will sell cars to returning customers otherwise. This will also give certainty to customer and they will know they will need a small deposit again and not be shocked like they currently are when trying to trade in expecting 10k in equity only to be told its actually zero.

This has HB Dennis leasing on the reg plates and the first thing I googled when I got home was HB Dennis leasing just to see if they are doing individual leases at all. I'd happily just pay per month and hand a car back as it would suit me down to the ground the way I like to change cars.

Was at a company in the UK that leases out farm and constructuon machinery, the business was basically buy x amount of a certain machine lease it out till a minimum of 1000 hrs on it and then sell. The minimum hrs figure is where manufacturers are happy with otherwise they wouldn't deal with him, and he ends up selling a good share for more than what he paid due to the discount he gets. Typically holds on to the machine for 1 to 3 years. Market not really here for machinery for it but you'd think something similar would work for cars?

photosmart wrote: »

Do you know what they offered him for his 2015 Octavia? ie how much did it depreciate over three years as per dealers offer?

€11,300 I think. Not less than 11 and not more than 11,500, I’ll double check tomorrow. Basic, basic spec one. The windows in the back have manual wind ups

mickdw wrote: »

Just back to the leasing argument. A bmw 420d can be had for 258 sterling per month with 2300 deposit on a 4 year deal. Tiny mileage allowance of 5k miles per year but still you could probably just about buy 2 of them for the cost of one here.

5k miles !!
Essentially your buying a motor to park in the driveway and say “look what I can afford”

Volvo are apparently going to launch a leasing package shortly this year. It will cover the car rental, insurance and tax and service costs.
I’d seriously consider this when it launches.

Quick search of car leasing in UK and some of the deals are very good. Granted they are all 8k miles per annum but it really just goes to show how much we get ripped off in Ireland. If you are ok not ever owning the car and get in the frame of mind of treating it like an expense similar to your broadband, your phone or your electricity, leasing is a fantastic option. I wish they would bring it in here! Anybody know whether personal leasing is new to the UK or has it been around a long time? I know I had family that had been using PCP before it was even ever mentioned over here.
Deals I found
- BMW 520d M Sport..........Deposit  2,039.....Monthly 340
- MB E220d AMG..........2,069........345
-Audi A5 2.0tdi S-line.........2045........341
-VW Tiguan 2.0tdi 4Motion R-Line..........1895......315

Doddles88 wrote: »

Deals I found
- BMW 520d M Sport..........Deposit  2,039.....Monthly 340
- MB E220d AMG..........2,069........345
-Audi A5 2.0tdi S-line.........2045........341
-VW Tiguan 2.0tdi 4Motion R-Line..........1895......315

As regards the deposit does this follow through if you change your car or are you paying a deposit each time you commence a lease arrangement

According to the European Courts you can offer a lease in Ireland without having to charge VRT (I think!!):
https://www.rte.ie/news/2017/0919/905877-vehicle-registration-tax/

setanta1000 wrote: »

According to the European Courts you can offer a lease in Ireland without having to charge VRT (I think!!):
https://www.rte.ie/news/2017/0919/905877-vehicle-registration-tax/

I wouldnt think so.

Jakey Rolling wrote: »

Trying to get my OH to understand this - if you do more mileage, the car will be worth less!
.

If ever this has to be a discussion in my house, I'll buy a cheaper car. Cars are for driving, I absolutely hate the "keeping the mileage down" mindset.

draiochtanois wrote: »

less the admin fee
less the cost of exporting it

so it's not something the average job is going to do

No, but that intrinsic value is still priced into the value of the car.

Of course you can do that. Finance company don't care if you have cut the car in 2 halves or if you use it as a hen house if you are buying it out. It is then your car fully paid for.
Any extra mileage will effect a pcp in 2 ways -
If trading for new car, the car will be valued based on mileage and condition same as any other car. Higher mileage will mean a lower offer. There will be no direct charge per excess mile but that will be roughly accounted for in the trade in offer.
If handing back the car, you pay agreed excess mileage charge per mile.
Tbh, if handing back, you are generally getting screwed over anyway in losing out any built up equity.

ewj1978 wrote:

basically I do 40k/kms a year. was thinking I can't even look at PCP with that mileage. hence my thinking on trying to bring down monthly costs. I'd obv be thinking i'd pay the GMFV at the end of the 3 years.

If you can I would advise of the mileage and get the gmfv adjusted down so you pay off slightly more over the first 3 years.

I'd also budget for more tyres and extra servicing within the first 3 years as you will move outside your service allowance which is typically 3 services once every 15 to 20k or year.

Other than that load your deposit to minimise interest if any and enjoy!