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PCP finance.

[Deleted User]

Ok so after a while of my brother and I trying to figure out the benefits of PCP we can't find any.

He's looking at getting a new Audi and we've been looking into pcp, he changes every 2 years or so and might have 15 k miles maximum on the clock so we thought pcp might suit him better.

You got to come up with a large deposit if you don't have a trade in and while your monthly payments appear low when you add in the fact you need a new deposit for the new pcp after 3 years your 300 a month pcp suddenly turns into 600+ pm.

So what's the benefit over hp or bank loan ?

The only hing with hp or loan is you pay the full interest where as pcp yup don't ?

Either way I see little benefit on a normal loan and trade in and re finance after 3 years or so. Only thing is VW bank has much lower interest than any other bank or finance.

For me doing 20-25 k miles a year pcp would leave me with not much on the gfv.

It seems to me that people could get caught out at the end because you can be damn sure you won't have much over the gfv to use as a deposit.

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DaveyDave

Rusky rusky wrote: »

I only paid 500 in November. Actually, in 2015 I also paid 500

I guess it's different depending on the dealer? Not a big deal though as it's part of the deposit anyway

Dtp1979

Is there A fixed fixed price to pay on the deposit or is it calculated off the total cost of the vehicle?

ctlsleh

is there a PCP Best Buy forum does anyone know?

capefear

Don’t think so, could we have a thread were we list all the pcp offers for 2018 we see

comanche_cor

Shopping around for a new car at the moment and it seems like garages are using PCP as a great way to ensure they get maximum margins on their sales.

In most of that garages once I mentioned I was interested talking about the cost to change first and then finance afterwards they would immediate jump to monthly cost in an attempt to not get drawn into negotiations over the cost of the car.

IMO they are using people's financial illiteracy against them... it's a great way to show a load of 'confusing' figures and then tell a customer all they need to focus on is their monthly payment.

Though perhaps this was always the way with financing ...

Lantus

comanche_cor wrote:

IMO they are using people's financial illiteracy against them... it's a great way to show a load of 'confusing' figures and then tell a customer all they need to focus on is their monthly payment.

comanche_cor wrote:

Though perhaps this was always the way with financing ...

Always been the way for mortgages and phones and any other type of finance, catalogue etc since I can remember.

A monthly figure is the most common way to determine affordability. It doesn't prevent any consumer from asking a whole other range of questions though.

comanche_cor

Lantus wrote: »

Always been the way for mortgages and phones and any other type of finance, catalogue etc since I can remember.

At the moment there's talk of the central bank banning cash deals as it blurs the real cost for the consumer.

Phones are not the same financial commitment as a house or a car.

A monthly figure is the most common way to determine affordability. It doesn't prevent any consumer from asking a whole other range of questions though.

A monthly figure is only part of the cost. This can be adjusted by playing with the figures one example is that they will play with the retail value of the car so that deposits can be increased to get the monthly figure down. This however doesn't matter a damn if you are paying 2k more for the same car than another garage who gives you a better trade/discount but does not play with the figures as much.

IMO consumers need protection from themselves here as they are most likely not asking the right questions and from my experience sale people are guiding them away from these questions...

autumnbelle

I bought a car on pcp finance June 2016. The dealer set the annual milage very low and gfv very high-At the end of the 36 month I will owe approx 10k on the car. The milage so far is 70k kms. I am just wondering what my options are at the end- If I hand back the car there will be milage penalties. Can I change to a lower year car with the garage? Or if I buy a new car will my monthly repayments increase hugely? Currently €230 a month. should I be saving big money now to fund whatever will happen at the end of the 36 months. The car is renault.

bazz26

Most of the answers to your questions are asked numerous times in this thread, just go back a few pages and do some light reading.

Casati

autumnbelle wrote: »

I bought a car on pcp finance June 2016. The dealer set the annual milage very low and gfv very high-At the end of the 36 month I will owe approx 10k on the car. The milage so far is 70k kms. I am just wondering what my options are at the end- If I hand back the car there will be milage penalties. Can I change to a lower year car with the garage? Or if I buy a new car will my monthly repayments increase hugely? Currently €230 a month. should I be saving big money now to fund whatever will happen at the end of the 36 months. The car is renault.

Yes they might penalize you handing it back with north of 110km on it. Would you be able to pay the 10k and keep it? You could refinance the 10k via a bank or credit union etc

IrishHomer

Anyone know what I should do,

I have a VW almost three years on PCP and was crashed last week other car was at fault.

Do I need to notify VW bank PCP?

Other car agreed to pay damages or insurance

DaveyDave

IrishHomer wrote: »

Anyone know what I should do,

I have a VW almost three years on PCP and was crashed last week other car was at fault.

Do I need to notify VW bank PCP?

Other car agreed to pay damages or insurance

Do you have GAP insurance?

Lantus

autumnbelle wrote:

I bought a car on pcp finance June 2016. The dealer set the annual milage very low and gfv very high-At the end of the 36 month I will owe approx 10k on the car. The milage so far is 70k kms. I am just wondering what my options are at the end- If I hand back the car there will be milage penalties. Can I change to a lower year car with the garage? Or if I buy a new car will my monthly repayments increase hugely? Currently â‚¬230 a month. should I be saving big money now to fund whatever will happen at the end of the 36 months. The car is renault.

What was the car cost and the deposit?

Handing back is generally the worst case scenario. You won't get back any equity you invested and the dealer can invoke the mileage penalties as you correctly state.

Saving now with view to pay off the gmfv could be an option especially as your monthlys are so low.

twin_beacon

IrishHomer wrote: »

Anyone know what I should do,

I have a VW almost three years on PCP and was crashed last week other car was at fault.

Do I need to notify VW bank PCP?

Other car agreed to pay damages or insurance

I would imagine you need to call the garage where you bought the car asap, as you are not the owner of the car, VW is. If the person that crashed has accepted liability and is willing to pay, the garage where you bought the car will probably want the work done to fix it by one of their approved mechanics. Either way, you should be fine but better let them know now, rather than when the pcp deal is up.

autumnbelle

Is it possible to go down in the years when going back with the car at the end of the pcp package? to lower repayments

DaveyDave

I know trading in early has been discussed here but it's quite a big thread. What's the deal with trading in early in terms of 1 year Vs 2 years?

If I remember correctly it's not worthwhile trading in before a certain amount has been paid back?

Lantus

Ask your dealer or any other dealer your interested in for a quote.

1 year probably isn't viable but 2 years is pretty common for trade in. However, with 2nd hand sales seriously eroded by UK imports the probability of a good deal at any period is much less likley. Please come back with offers and feedback as the more info we have as consumers the better.

mickdw

IrishHomer wrote: »

Anyone know what I should do,

I have a VW almost three years on PCP and was crashed last week other car was at fault.

Do I need to notify VW bank PCP?

Other car agreed to pay damages or insurance

well firstly what do you want to do. Sounds like the ideal time to get a new car if you are planning on changing at 3 years.
If that is the case, get onto dealer where you might be buying and see what the figures look like considering damaged cars value plus payout from outer driver etc.
If you are planning to just buy out the car and keep, now might be best time to do that also. It is then your car and you can do as you wish - Have it fixed where ever you wish etc.

MarkN

twin_beacon wrote: »

I would imagine you need to call the garage where you bought the car asap, as you are not the owner of the car, VW is. If the person that crashed has accepted liability and is willing to pay, the garage where you bought the car will probably want the work done to fix it by one of their approved mechanics. Either way, you should be fine but better let them know now, rather than when the pcp deal is up.

The garage have been paid for the car, they’re not interested.

Why would a mechanic be involved in body repair?

You don’t own a car on HP either but you don’t go ringing the garage you bought the car in 2 years ago to say you were in an accident.

McGrath5

Okay so I have read through this thread aplenty,but here is my quote for a new factory order highline Golf from VW I got over the weekend.

Deposit of €8k.
36 monthly payments of €405.
Outstanding balance at the end will be €11500.

I nearly have the cost of the car in cash, but I would prefer to spread it out over 3 years instead of parting with that kind of money now.

SteelyDanJalapeno

McGrath5 wrote: »

Okay so I have read through this thread aplenty,but here is my quote for a new factory order highline Golf from VW I got over the weekend.

Deposit of €8k.
36 monthly payments of €405.
Outstanding balance at the end will be €11500.

I nearly have the cost of the car in cash, but I would prefer to spread it out over 3 years instead of parting with that kind of money now.

APR?

McGrath5

SteelyDanJalapeno wrote: »

APR?

I don't have the paperwork in front of me, pretty sure it is 1.9%.

SteelyDanJalapeno

McGrath5 wrote: »

I don't have the paperwork in front of me, pretty sure it is 1.9%.

Well if you have the cost of it in cash, I presume you'd get a slight discount for paying in full, so ball park if it was 33k on PCP,
I'd imagine at least 500 off for cash plus the 1.9 Apr saved.
That's quickly a grand saved straight away.

Depends on how much you'd wanna keep the cash thou.

Rusky rusky

McGrath5 wrote: »

I don't have the paperwork in front of me, pretty sure it is 1.9%.

Afaik, you can get a 0% apr and a €1000 contribution for a highline model if financed though the vw bank. The caviat is that the has be to registered before end of March so only stock cars.
Is it a diesel? The price of the car is ab 33k w/o interest and the min price is ab 27.6k for a petrol manual w/o options and delivery

mickdw

The vw deals are generally pretty good but are you getting any contribution from vw? Is it zero percent or 1.9?
I'd imagine better terms may appear for the new quarter given that this is the first part of the year where sales are plentiful however if you were to finalise a purchase towards the end of this quarter, you might get a good deal too.
You are not going max deposit and the final payment looks on the low side so there is every chance that you will have a reasonable level of equity at year 3 if you want a new car.

bazz26

According to the VW website they have 0% on the Golf Highline, 1k contribution and Technology Pack upgrade for €699 at present. As said there might be a slightly better deal next quarter when the traditional Jan to March new car buying is done and order books are a little more thin. If want factory extras rather than a car already in stock then you won't make the current deal.

Terms and conditions from the site:

1. Models shown are for illustrative purposes only. Golf Range Fuel Consumption l/100km (high to low): urban 6.7 – 4.1, extra-urban 4.6 – 3.8, combined 5.3 – 3.9. CO2 emissions g/km (high-low) 121 – 102. Increased weight of a vehicle, including higher trim levels and the addition of options may have an affect on the fuel consumption and CO2 emissions produced. Typical Finance Example: Golf Highline 3DR 1.6 TDI OTRP €29,825. Deposit / Part Exchange €8,742.00. 36 monthly payments of €279. 0% APR. Optional Final Payment €11,039. Total cost of credit €0. Minimum deposit is 10%. Subject to lending criteria. This offer is made under a hire purchase agreement. Volkswagen Bank GmbH Branch Ireland is authorised by the Federal Financial Supervisory Authority in Germany and regulated by the Central Bank of Ireland for conduct of business rules. *Purchase Contribution and finance offers only available on new retail sales ordered and registered before March 31st 2018 and must be financed through Volkswagen Bank. This offer is subject to availability and may be withdrawn at any time. This offer does not apply to fleet sales. Please contact your local Volkswagen dealer for full details.

McGrath5

The dealer was trying to push me towards what they had in stock, as opposed to a factory order, but they did not have anything with the configuration I am after.

mickdw

Nothing new there.
There was a time when ordering a car from the factory was the common approach. Recently, I've seen far too much of salesmen seeing what they have in the country and losing all interest if you mention getting a car built.

Lantus

McGrath5 wrote:

I nearly have the cost of the car in cash, but I would prefer to spread it out over 3 years instead of parting with that kind of money now.

If you max your deposit you will save on some interest which I would consider. Won't be much at 1.9% but better in your pocket.

spyderski

bazz26 wrote: »

According to the VW website they have 0% on the Golf Highline, 1k contribution and Technology Pack upgrade for €699 at present.
Terms and conditions from the site:

1. Models shown are for illustrative purposes only. Golf Range Fuel Consumption fuel consumption and CO2 emissions produced. Typical Finance Example: Golf Highline 3DR 1.6 TDI OTRP €29,825. Deposit / Part Exchange €8,742.00. 36 monthly payments of €279. 0% APR. /I]

I enquired about a Golf HL the other week. 0% apr only available on diesel models from stock, the rest are 1.9%. Diesels not shifting I’d say...