PCP finance.

XsApollo · 09-12-2018 06:41PM

Oh yea I understand all the pcp.
I won’t be going for another , will be paying the baloon at the end.
I just thought it was a good offer.
Few people I know havnt been offered good deals on return.
18k to get into a new Passat from the same Passat and 10k I think to get in to another focus.
I think the deal I got was pretty reasonable to be fair.

murpho999 · 10-12-2018 11:45AM

Lantus wrote: »

So the gmfv is the outstanding debt on the car your not paying off but parking for 3 years. Ideally this is low enough so that the market value is greater.

For example if the gmfv is 7k and the market value 11k after 3 years then you have 4k minus dealer profit, so let's say 2k of equity to play with. This will be your deposit moving into a new pcp deal.

A golf is quite a bit more so you would probably need extra cash deposit to reach 10% min deposit level.

You can trade in at any time but 2 years is typically the earliest.

Is this correct? I thought the difference between GMFV and value of car was your own equity that you can use in next deal?

Casati · 10-12-2018 12:10PM

XsApollo wrote: »

Well I bought a 162 seat Ibiza on pcp 0% finance with 10% deposit in August 16
Got a call there that I could hand back the car in January and get the equivelant 191 new model for an extra 5 euro a month on top of what I am paying now.
No cash needed.
I thought that was a pretty good deal.
Didn’t take it.
But thought it was a good deal if I was interested.

I think thats a very good deal, basically they are telling you the equity you have in the car will be the same as the amount of the deposit you gave when you bought it originally. I personnally would have taken it

mickdw · 10-12-2018 12:15PM

murpho999 wrote: »

Is this correct? I thought the difference between GMFV and value of car was your own equity that you can use in next deal?

You are both right. He is just saying that the trade in offer you get will be a little below what your car would retail for on dealer forecourt .
So yes difference between gfv and trade in offer is yours for deposit on
next car.

Lantus · 10-12-2018 12:29PM

murpho999 wrote: »

Is this correct? I thought the difference between GMFV and value of car was your own equity that you can use in next deal?

The dealer won't mention his profit. You'll just get a single figure after the deduction is made. It's in there though.

JoeyJJ · 10-12-2018 12:40PM

I need to read my documents again, however I believe my baloon will be automatically taken from my account next july. I am planning on having it ready to go. My dealer no longer sells Hyundai so not expecting much of a conversation taken place for me on trying to get me on a new deal.

bazz26 · 10-12-2018 12:44PM

You don't have to buy from the same dealer or brand to go into another deal.

mickdw · 10-12-2018 04:38PM

JoeyJJ wrote: »

I need to read my documents again, however I believe my baloon will be automatically taken from my account next july. I am planning on having it ready to go. My dealer no longer sells Hyundai so not expecting much of a conversation taken place for me on trying to get me on a new deal.

If that is the option you want, great but don't let the fact that the dealer no longer sells the car you want mesz you up. You can do a deal with any dealer of any brand. They will just look for the amount due on your car and factor it into next deal same as any other dealer.

SteelyDanJalapeno · 10-12-2018 05:03PM

PCP expiring in April on my 161 Leon FR,

12k settlement figure, offer 18k valuation so about 6k equity.

I initially fronted a larger deposit thou 2.5 years ago so my monthly will jump from 240 --> 355 to get into a 191 Leon FR.

RRP - 29,055
GFV - 10,800

While it looks poor, it was smooth sailing for the last 2.5 years at 240 PM, I knew it was always gonna increase with the higher deposit last time round.

gonna go shop around see what else is available all the same.

Casati · 10-12-2018 05:22PM

SteelyDanJalapeno wrote: »

PCP expiring in April on my 161 Leon FR,

12k settlement figure, offer 18k valuation so about 6k equity.

I initially fronted a larger deposit thou 2.5 years ago so my monthly will jump from 240 --> 355 to get into a 191 Leon FR.

RRP - 29,055
GFV - 10,800

While it looks poor, it was smooth sailing for the last 2.5 years at 240 PM, I knew it was always gonna increase with the higher deposit last time round.

gonna go shop around see what else is available all the same.

Interesting that the GFV has dropped on the 191 but that isn’t a bad deal. The FR is priced well too, it’s a car that I don’t think the retail has increased really in the last three years

SteelyDanJalapeno · 10-12-2018 06:02PM

Casati wrote: »

Interesting that the GFV has dropped on the 191 but that isn’t a bad deal. The FR is priced well too, it’s a car that I don’t think the retail has increased really in the last three years

GFV is actually very similar, I have 5 payments left which is included in the settlement cost

Casati · 10-12-2018 06:35PM

SteelyDanJalapeno wrote: »

GFV is actually very similar, I have 5 payments left which is included in the settlement cost

Okay, yours must be a late 161 then, get you

JoeyJJ · 11-12-2018 10:07AM

mickdw wrote: »

If that is the option you want, great but don't let the fact that the dealer no longer sells the car you want mesz you up. You can do a deal with any dealer of any brand. They will just look for the amount due on your car and factor it into next deal same as any other dealer.

Cheers, will have a look around, I doubt anyone would give 0% interest PCP on a 3 year trade in?

Lantus · 11-12-2018 10:19AM

JoeyJJ wrote: »

Cheers, will have a look around, I doubt anyone would give 0% interest PCP on a 3 year trade in?

Lots of brands do zero pc. Vw and skoda in particular. What your trading in isn't relevant to the finance.

ShadowHearth · 11-12-2018 11:18AM

SteelyDanJalapeno wrote: »

PCP expiring in April on my 161 Leon FR,

12k settlement figure, offer 18k valuation so about 6k equity.

I initially fronted a larger deposit thou 2.5 years ago so my monthly will jump from 240 --> 355 to get into a 191 Leon FR.

RRP - 29,055
GFV - 10,800

While it looks poor, it was smooth sailing for the last 2.5 years at 240 PM, I knew it was always gonna increase with the higher deposit last time round.

gonna go shop around see what else is available all the same.

That does not look too bad at all. You know you can add more cash yourself? Use that 6k ( that is actually very decent ) and add maybe 2-3k of your own and your payments will be same.
Thats why its a good idea to put away at least some money in to separate sock just for when pcp ends in 3 years.

On Seat now. Is it me or their website configurator is extremely stripped down? Engine and spec choice is extremely small. I cant even put together fr spec leon on it.
On the side note. Seat is doing 5k scrapage on leon. So maybe thats why you got good deal on it. Might be not popular opinion, but I mich prefer going with outgoing model at gold deal then sitting in brand new model first year and be a beta tester.

Casati · 11-12-2018 11:48AM

ShadowHearth wrote: »

That does not look too bad at all. You know you can add more cash yourself? Use that 6k ( that is actually very decent ) and add maybe 2-3k of your own and your payments will be same.
Thats why its a good idea to put away at least some money in to separate sock just for when pcp ends in 3 years.

On Seat now. Is it me or their website configurator is extremely stripped down? Engine and spec choice is extremely small. I cant even put together fr spec leon on it.
On the side note. Seat is doing 5k scrapage on leon. So maybe thats why you got good deal on it. Might be not popular opinion, but I mich prefer going with outgoing model at gold deal then sitting in brand new model first year and be a beta tester.

I don’t know what they are at, not only is the configurator only showing Leon SE only, they don’t even have a price list for other models online.

easyvision · 11-12-2018 12:47PM

New Leon coming next year so prob they want to keep people waiting for new one or low availability of old stock

ShadowHearth · 11-12-2018 05:38PM

easyvision wrote: »

New Leon coming next year so prob they want to keep people waiting for new one or low availability of old stock

My guess is, they are in hot water like all vag group with new emission tests. It was mentioned before that a lot of models and engines wont be available until they "fix" them.
Next year seat will try to push all Leon stock they can before new model. In fairness Leon FR with 184hp diesel is a very tasty deal right now.

Lantus · 11-12-2018 07:03PM

ShadowHearth wrote: »

My guess is, they are in hot water like all vag group with new emission tests. It was mentioned before that a lot of models and engines wont be available until they "fix" them.
Next year seat will try to push all Leon stock they can before new model. In fairness Leon FR with 184hp diesel is a very tasty deal right now.

I'd say its more just the logistics of getting all new cars through the tests in such a tight time frame. It affects how a car is advertised and sold and its price. So many cars simply are unavailable which will have a big impact on new car sales as dealers struggle to hit any meaningful target as buyers hold off and wait.

Could be a good few months to buy?

My pcp renewal monthly came down for a new car if I wanted one. Going to keep as commute has dropped to 5km but nice to know.

ShadowHearth · 11-12-2018 07:35PM

Lantus wrote: »

I'd say its more just the logistics of getting all new cars through the tests in such a tight time frame. It affects how a car is advertised and sold and its price. So many cars simply are unavailable which will have a big impact on new car sales as dealers struggle to hit any meaningful target as buyers hold off and wait.

Could be a good few months to buy?

My pcp renewal monthly came down for a new car if I wanted one. Going to keep as commute has dropped to 5km but nice to know.

Thing is, I am not sure is it good or bad time to buy a car ( new or old ) for about 20-30k. Such extreme changes in motoring right now and only god knows where it will settle. Diesel has future or doesn't. Petrol too? Hybrid and electric technology is not even near where it should be in real world. Technology is rushed right now and changing so much. Thing is those electric and hybrid cars getting improved so much that it reminds me the days of computers with Pentium I. Where computers were advancing so fast, that your expensive desktop was worthless after a year. Who says it wont happen with all these cars. At least when it was mechanical - engine was engine after years go, its still an engine. These new cars might be like phones. Worthless after a year, because new improved one comes out next year with better range etc.
Where am I going with this? Well, what happens with pcp on these hybrid electric cars. You in 3 years and its outdated so much more then Ice engine and worth nothing in that time. Buy petrol, diesel? Well what will happen to them as nothing is clear what will governments do with them. Hard forces us to abandon them and their values plummet beyond normal depreciation.
My pcp is up in 2020 and honestly, I am very unsettled about my plans for next car. There are options I like, but at the same time I am afraid to invest so much money, which can become a brick with even less value then acceptable depreciation.

I wonder if a lot of people are like this now too or am I just over thinking. Apparently sales are down across all manufacturers right now.

Sorry for this post. Just this thing is at the back of my head for very long time. Just be interesting to hear other opinions of the folk on pcp.

Lantus · 11-12-2018 08:46PM

ShadowHearth wrote: »

Thing is, I am not sure is it good or bad time to buy a car ( new or old ) for about 20-30k. Such extreme changes in motoring right now and only god knows where it will settle. Diesel has future or doesn't. Petrol too? Hybrid and electric technology is not even near where it should be in real world. Technology is rushed right now and changing so much. Thing is those electric and hybrid cars getting improved so much that it reminds me the days of computers with Pentium I. Where computers were advancing so fast, that your expensive desktop was worthless after a year. Who says it wont happen with all these cars. At least when it was mechanical - engine was engine after years go, its still an engine. These new cars might be like phones. Worthless after a year, because new improved one comes out next year with better range etc.
Where am I going with this? Well, what happens with pcp on these hybrid electric cars. You in 3 years and its outdated so much more then Ice engine and worth nothing in that time. Buy petrol, diesel? Well what will happen to them as nothing is clear what will governments do with them. Hard forces us to abandon them and their values plummet beyond normal depreciation.
My pcp is up in 2020 and honestly, I am very unsettled about my plans for next car. There are options I like, but at the same time I am afraid to invest so much money, which can become a brick with even less value then acceptable depreciation.

I wonder if a lot of people are like this now too or am I just over thinking. Apparently sales are down across all manufacturers right now.

Sorry for this post. Just this thing is at the back of my head for very long time. Just be interesting to hear other opinions of the folk on pcp.

There is plenty of life in ice engines. EV cars will have great retained value in batteries that can be repurposed for domestic use. Pcp is already built for lower gmfv but reality is retained values are strong. People need 2nd hand EV so demand is high, supply is too low.

Don't worry. At the end of day buy a car you want and can afford. Then enjoy it and don't worry about it or else it will be more like it owns you than the other way around.

There's probably only 10 to 15years of life left on the planet anyway....
ðŸ™„

SteelyDanJalapeno · 11-12-2018 09:51PM

ShadowHearth wrote: »

My guess is, they are in hot water like all vag group with new emission tests. It was mentioned before that a lot of models and engines wont be available until they "fix" them.
Next year seat will try to push all Leon stock they can before new model. In fairness Leon FR with 184hp diesel is a very tasty deal right now.

I'm guessing there's good deals on the 184 as it's being discontinued, cant pass emissions anymore

ShadowHearth · 11-12-2018 10:11PM

Lantus wrote: »

There is plenty of life in ice engines. EV cars will have great retained value in batteries that can be repurposed for domestic use. Pcp is already built for lower gmfv but reality is retained values are strong. People need 2nd hand EV so demand is high, supply is too low.

Don't worry. At the end of day buy a car you want and can afford. Then enjoy it and don't worry about it or else it will be more like it owns you than the other way around.

There's probably only 10 to 15years of life left on the planet anyway....
ðŸ™„

Thats the thing. I am very anal when it comes to financial decisions. I always plan, test, count, prepare. Never do it half arsed. It took me a long time to to figure out if I can afford new car. And it payed off.
I won't be in difficulty when 3 years come. I will be able to buy out car. I prepared for that. Though getting something new is always tempted and I have to be honest with myself. I love my little pocket rocket, but I am not getting any younger and 120km daily commute after 12h shift is taking its toll and I will need something more comfortable.
Thing is, with such a mess now, its hard to make smart decision. Its like gamble on race horse. To make it even more interesting, Hyundai is investigating 5.5billion in to hydrogen cell technology.
I miss of old days when it was Petrol or Diesel.

ravendude · 11-12-2018 11:06PM

ShadowHearth wrote: »

Thats the thing. I am very anal when it comes to financial decisions. I always plan, test, count, prepare. Never do it half arsed. It took me a long time to to figure out if I can afford new car. And it payed off.
I won't be in difficulty when 3 years come. I will be able to buy out car. I prepared for that. Though getting something new is always tempted and I have to be honest with myself. I love my little pocket rocket, but I am not getting any younger and 120km daily commute after 12h shift is taking its toll and I will need something more comfortable.
Thing is, with such a mess now, its hard to make smart decision. Its like gamble on race horse. To make it even more interesting, Hyundai is investigating 5.5billion in to hydrogen cell technology.
I miss of old days when it was Petrol or Diesel.

I think you are over thinking it a little but I see your point. I would/could actually be a cash buyer, and the car I am interested in is diesel, I reckon Irish people will be attached to diesel for another 5 years or so. However, this is one of the attractions of pcp for me, the dealer takes on most of the risk of the problem you describe and there is a floor on the amount you can get burnt on due to potential disruption by ev etc.
Ie. If the price of diesel does plummet, say due to big advances in EV you can hand the car back after the 3 years and walk away, and go and get an EV instead, your losses are quite limited at least.

Ie. Go PCP to put a floor on your losses and you can hand it back if there is such significant disruption in the market in 3 years time

ShadowHearth · 11-12-2018 11:36PM

ravendude wrote: »

I think you are over thinking it a little but I see your point. I would/could actually be a cash buyer, and the car I am interested in is diesel, I reckon Irish people will be attached to diesel for another 5 years or so. However, this is one of the attractions of pcp for me, the dealer takes on most of the risk of the problem you describe and there is a floor on the amount you can get burnt on due to potential disruption by ev etc.
Ie. If the price of diesel does plummet, say due to big advances in EV you can hand the car back after the 3 years and walk away, and go and get an EV instead, your losses are quite limited at least.

Ie. Go PCP to put a floor on your losses and you can hand it back if there is such significant disruption in the market in 3 years time

Actually, you have a good point. Risk is there, but pcp might work both ways, not just advantage for a dealer. If it is going to that much south, you can do whole half and half rule. It applies to pcp too.
And don't understand me wrong, I still think pcp is a fantastic product. Well, for those who actually understand how it works and what kind of advantages and disadvantages it gives.
Just the current climate in motoring world makes decision for the next car a bit hard.

ravendude · 11-12-2018 11:43PM

ShadowHearth wrote: »

Actually, you have a good point. Risk is there, but pcp might work both ways, not just advantage for a dealer. If it is going to that much south, you can do whole half and half rule. It applies to pcp too.
And don't understand me wrong, I still think pcp is a fantastic product. Well, for those who actually understand how it works and what kind of advantages and disadvantages it gives.
Just the current climate in motoring world makes decision for the next car a bit hard.

Agreed. I've given this some thought also. I'll go pcp for the first time ( I could almost be a cash buyer or at least with modest finance) so the car can go back if diesel is hit too hard. Also, I'll go for a larger, spacious diesel car that is likely to stay a bit more in demand with those doing the miles and longer commutes. Other than that there's just no guarantees, petrol vs diesel vs early adoption ev are all risky. I think diesel will be targeted but there will be several years in it yet.

ravendude · 11-12-2018 11:52PM

ShadowHearth wrote: »

Actually, you have a good point. Risk is there, but pcp might work both ways, not just advantage for a dealer. If it is going to that much south, you can do whole half and half rule. It applies to pcp too.
And don't understand me wrong, I still think pcp is a fantastic product. Well, for those who actually understand how it works and what kind of advantages and disadvantages it gives.
Just the current climate in motoring world makes decision for the next car a bit hard.

I was not aware of that half rule, that is very interesting, just googled it there. So you have the balloon payment as an effective floor, or, the half rule can apply depending on how far you are into your payments.

I wonder whether invoking the half rule, would hit your credit rating, say in a hypothetical scenario where ice prices collapsed.

Casati · 12-12-2018 11:06PM

I bought a new diesel for 40k this year and the risk is big that it won’t be worth much in two more years - but it’s down to weak and getting weaker Sterling.

The biggest issue with EV’s now is the availability of different cars with a decent range- and the ones with a decent range (eg Kona) come at a massive price premium to similar petrol. When the grants disappear most ev’s won’t be affordable except for certain high mileage users.

For somebody doing 10k per annum petrol of hybrid is a lot cheaper to buy and fairly cheap to run but diesel is hard to beat for longer distance driving/ larger cars inc large 4wd’s and for towing. I hope we will be all in ev’s with ranges and prices similar to diesels now but I can’t see it in the next 10 years+

Mickiemcfist · 12-12-2018 11:31PM

Casati wrote: »

I hope we will be all in ev’s with ranges and prices similar to diesels now but I can’t see it in the next 10 years+

While the primary source of electricity in the country is burning fossil fuels i don't think it really matters what we drive tbh, may as well be the petrols which sound better.

sheff the ref · 16-12-2018 11:16PM

I bought a 161 Ibiza Diesel on 0% PCP in March 16. I think my final lump sum is due to be around €6700. I don't intend upgrading and instead plan on paying off in instalments over the next couple of years and owning my car as you wont get many 3 year old cars for €6700. Besides, my mileage is very big. €125K or so at the moment and still not 3 years old. When I own my car in a couple of years time, I will then look at options.

I am interested in your post from the point of view of an extra fiver a month. Assuming you have a similar enough deal to mine, I presume the final lump sum on the 191 will increase significantly?

XsApollo wrote: »

Well I bought a 162 seat Ibiza on pcp 0% finance with 10% deposit in August 16
Got a call there that I could hand back the car in January and get the equivelant 191 new model for an extra 5 euro a month on top of what I am paying now.
No cash needed.
I thought that was a pretty good deal.
Didn’t take it.
But thought it was a good deal if I was interested.

PCP finance.

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