PCP finance.

autumnbelle · 17-04-2019 10:46AM

Hi does anyone know if you want to roll over the finance to keep the car can you do it before the pcp deal is up, mine is up in July but wamt it sorted before they try to take the final balance as a direct debit. The salesman in the garage where I bought the car is not replying and the bank said I have to go through the garage. Thanks in advance

sillysocks · 17-04-2019 11:25AM

autumnbelle wrote: »

Hi does anyone know if you want to roll over the finance to keep the car can you do it before the pcp deal is up, mine is up in July but wamt it sorted before they try to take the final balance as a direct debit. The salesman in the garage where I bought the car is not replying and the bank said I have to go through the garage. Thanks in advance

You can do it before the deal is up but if you use the current settlement figure you’d be refinancing more than your final figure. We’ve just done a refinance, we sorted with the garage to do the refinance with same finance company and they only did the docs etc once our payment was taken for the final monthly amount. So we just had to refinance the gfmv amount.

Surprised the bank wouldn’t deal with you though!

Lantus · 17-04-2019 12:53PM

autumnbelle wrote: »

Hi does anyone know if you want to roll over the finance to keep the car can you do it before the pcp deal is up, mine is up in July but wamt it sorted before they try to take the final balance as a direct debit. The salesman in the garage where I bought the car is not replying and the bank said I have to go through the garage. Thanks in advance

Very easy and normal to do this. Wouldnt over worry about balance. Once you agree to pay or get another car it's all taken care of. In my case I had a month of no payments between the first 3 years and paying off the balance because of where the dates fell. Had I wanted another car and it was delayed there was talk of a bridging loan to cover the gap.

Just get the talk going and know what you want.

Redgirl82 · 18-04-2019 06:04PM

Just looking for some advice. About to buy a RAV on PCP.

The PCP rate is 3.9%. I am getting 17k for my current car which about 8k of that will pay off an outstanding loan. I am just wondering is the best option to use all the rest of the money onto the deposit to reduce the monthly repayment? someone mentioned it is better to pay more monthly....

Final lump sum payment will be 16k

mickdw · 18-04-2019 06:22PM

Redgirl82 wrote: »

Just looking for some advice. About to buy a RAV on PCP.

The PCP rate is 3.9%. I am getting 17k for my current car which about 8k of that will pay off an outstanding loan. I am just wondering is the best option to use all the rest of the money onto the deposit to reduce the monthly repayment? someone mentioned it is better to pay more monthly....

Final lump sum payment will be 16k

Can you afford more monthly.
The best check you can do is try to assess what the car will be worth at end of term. Say 50 percent of new price.
Work out how much deposit that will give you on next car. Then see if you can live with monthly repayments that would give.
In short, you might have only 10 to 15 percent deposit from equity when you go to trade in in 3 years. Can I you afford to pay for same value car again based on 15 percent deposit?
If yes, you are good to go. If on the other hand you are pushing it to afford the car and have stuck 30 percent deposit in, well you will struggle to replace the car.

Redgirl82 · 18-04-2019 08:37PM

mickdw wrote: »

Can you afford more monthly.
The best check you can do is try to assess what the car will be worth at end of term. Say 50 percent of new price.
Work out how much deposit that will give you on next car. Then see if you can live with monthly repayments that would give.
In short, you might have only 10 to 15 percent deposit from equity when you go to trade in in 3 years. Can I you afford to pay for same value car again based on 15 percent deposit?
If yes, you are good to go. If on the other hand you are pushing it to afford the car and have stuck 30 percent deposit in, well you will struggle to replace the car.

I can afford more if I have to

Car is just under 40k. So they have 16k, so if you are correct and 50% then I would have 4k towards the next car at end of PCP?

mickdw · 18-04-2019 10:00PM

Ok and on this current deal you have put in 9k deposit.
If you were to only put in 4k deposit next time based on equity and no cash lumpsum being throw at it by yourself, your monthly would go up by 138 euro per month excluding any interest.
You may end up with better equity than that assuming you have got the new model Rav4 or you may be in a position to throw 3 or 4k cash at the deal in 3 years time. Only you know your financial position but working out the repayments with the smaller deposit figure is always a useful exercise. Too many have not a clue what will happen at end of year 3 and are surprised when the salesman is looking for an extra 200 per month for a similar car.

Redgirl82 · 18-04-2019 10:31PM

mickdw wrote: »

Ok and on this current deal you have put in 9k deposit.
If you were to only put in 4k deposit next time based on equity and no cash lumpsum being throw at it by yourself, your monthly would go up by 138 euro per month excluding any interest.
You may end up with better equity than that assuming you have got the new model Rav4 or you may be in a position to throw 3 or 4k cash at the deal in 3 years time. Only you know your financial position but working out the repayments with the smaller deposit figure is always a useful exercise. Too many have not a clue what will happen at end of year 3 and are surprised when the salesman is looking for an extra 200 per month for a similar car.

Thanks, if I take worse case scenario of 20k resale then I guess putting in 9k now is a bit of a waste of money?

rex-x · 18-04-2019 10:39PM

Redgirl82 wrote: »

Thanks, if I take worse case scenario of 20k resale then I guess putting in 9k now is a bit of a waste of money?

It may be even lower than 20k, 3 year old RAV 4's now are selling for under 20k but with new model etc it can be had to tell. I'd plan for 16k value worst possible case scenario

mickdw · 18-04-2019 11:31PM

Putting the 9k in is not a waste of money, just be sure you can afford to swap into another new car with worst case trade in.
I'd be pretty sure you would get 3 to 4k over and above what is owed minimum at end of term. You could do much better. At least you are buying a model that will still be current at end of your term. Buying a old model is a sure fire way of ending up with zero equity.

vintagevrs · 19-04-2019 07:26AM

Replacing the car in three years with a new car is not a must either. Buying a new car every three years is expensive regardless of what way it is paid for or financed. Obviously if you want a new car every three years and can afford it then go ahead.
Another option is to pay the lump sum in three years time. You could put a bit away each month during the three years to take care of this, or potentially finance that amount at the time.

Redgirl82 · 19-04-2019 09:16PM

rex-x wrote: »

It may be even lower than 20k, 3 year old RAV 4's now are selling for under 20k but with new model etc it can be had to tell. I'd plan for 16k value worst possible case scenario

I will be looking at around 40k km after the 4 years. A similar 3 year old version would be 23-24k. If I then switch to hybrid the value goes up.

I know it is just a guide but I would hope a 40k car wouldn't lose 24k value after 3 years and low mileage. Especially as I am not going for a diesel option

Redgirl82 · 19-04-2019 09:28PM

mickdw wrote: »

Putting the 9k in is not a waste of money, just be sure you can afford to swap into another new car with worst case trade in.
I'd be pretty sure you would get 3 to 4k over and above what is owed minimum at end of term. You could do much better. At least you are buying a model that will still be current at end of your term. Buying a old model is a sure fire way of ending up with zero equity.

In 3 years time I would hope to swap to full electric. At that stage the options should be better.

Now I did talk to dealer today and the price at end of deal has jumped to €16500.

CoBo55 · 27-04-2019 03:23PM

Casati wrote: »

5.5% is good

I was offered only 6.9% by Skoda this year, over 2 or 3 years. Basically the three year option ended up with payments similar to my pcp payment so I stupidly decided to roll it over and get a new car that I really didn’t need!

How much did you put in?

talkingpj · 17-06-2019 11:57AM

Has anyone had a negative pcp experience?

Is it worthwhile using pcp and not purchasing at the end of the contact and getting a new car?

Do the car companies try to take a big bite out of deposits?

mickdw · 17-06-2019 12:18PM

talkingpj wrote: »

Has anyone had a negative pcp experience?

Is it worthwhile using pcp and not purchasing at the end of the contact and getting a new car?

Do the car companies try to take a big bite out of deposits?

If you get low interest pcp, I believe its the best way to a car regardless of what you intend to do at end of term.
The manufactures cannot really get too cheeky on trade in figures as you are free to go anywhere you wish with the car - other manufactures are only too happy to give you a trade in figure and clear outstanding finance - its no more awkward than trading in for a new pcp at original dealer.
Plenty bad experiences - bmw were pushing it alittle and a lot of people have gone back with zero equity and unable to get into a new one.
Also, if you buy an old model, you will lose your shirt.

VW seem to work out well - reasonable deposits going forward in most cases unless you bought the wrong car.

Peatys · 17-06-2019 02:17PM

Has anyone got any experience of getting out of a pcp contact early?

Car doesn't suit our needs anymore..
191 superb payments started in April with 11k deposit..

ELM327 · 17-06-2019 02:22PM

Not possible, it is a contracted lease for 3 years
To get out of it you will have to pay the balance.

Peatys · 17-06-2019 02:46PM

ELM327 wrote: »

Not possible, it is a contracted lease for 3 years
To get out of it you will have to pay the balance.

Cheers. Saves me a call to Ansley Williams.

Lantus · 17-06-2019 05:16PM

Peatys wrote: »

Has anyone got any experience of getting out of a pcp contact early?

Car doesn't suit our needs anymore..
191 superb payments started in April with 11k deposit..

You could look to roll into a new deal on a much smaller or cheaper car. Octavia, fabia etc and even a used car. However at 4 months in your not in a great position and the dealer may refuse or hammer you for equity. Ideally after 1.5 to 2 years you'd be better placed.

Is downsizing an option or do you just want shot?

Wildly Boaring · 17-06-2019 06:02PM

Lantus wrote: »

You could look to roll into a new deal on a much smaller or cheaper car. Octavia, fabia etc and even a used car. However at 4 months in your not in a great position and the dealer may refuse or hammer you for equity. Ideally after 1.5 to 2 years you'd be better placed.

Is downsizing an option or do you just want shot?

Or roll into deal on a dearer car of it's the car not the money thats the issue

mickdw · 17-06-2019 06:21PM

Best way out of that deal is to look for a buyer who will take your car in a private sale. Hard done though. Dealers will have lots of 191 demos and will be offering full vw bank services.
To prevent sale being messy with finance company involved etc, you would need to buy out car completely first.
Id imagine dealers will be discounting by 5k. You would want to be 5k cheaper again so you would be doing well to get out of it with enough to clear finance. Your deposit will be lost completely at best.

DaveyDave · 17-06-2019 06:31PM

Would the half rule not apply here? Being a 191 though I'd imagine it would be expensive. If it doesn't suit your needs, maybe go back to the dealer and work out a deal to get into something that suits you? You wouldn't be the first person to want to change so soon.

"If you have paid less than half of the PCP price of the car, you can give the car back, and you will only owe the difference between what you have paid, and half of the price of the car. You do not have to pay half the PCP price to the finance company before you end the agreement under the half rule. However, you will have to pay the difference between the payments you have made to date and half the PCP price."

It would sting having to pay 50% of a car in less than a year though, it'd be worth more than that when you hand it back after 3 years I'd imagine.

mickdw · 17-06-2019 06:40PM

Half rule would meaning paying out alot more cash just to hand the car back.
It would certainly be an option if he was further into the term.

Peatys · 17-06-2019 06:47PM

Thanks for the info folks.

I'll ring them tomorrow and see the craic.

I know it sounds daft, but i could take the hit on the deposit as i traded a company car that was written of the company books..

SteelyDanJalapeno · 17-06-2019 07:02PM

Peatys wrote: »

Thanks for the info folks.

I'll ring them tomorrow and see the craic.

I know it sounds daft, but i could take the hit on the deposit as i traded a company car that was written of the company books..

quite the hit

Wildly Boaring · 17-06-2019 07:15PM

Peatys wrote: »

Thanks for the info folks.

I'll ring them tomorrow and see the craic.

I know it sounds daft, but i could take the hit on the deposit as i traded a company car that was written of the company books..

What is the problem with the car?

Too small, too big, not enough seats, too old person, too diesel, too petrol, just plain hate it?

Peatys · 17-06-2019 07:21PM

Wildly Boaring wrote: »

What is the problem with the car?

Too small, too big, not enough seats, too old person, too diesel, too petrol, just plain hate it?

Seats are very uncomfortable for anything longer than an hour, and the suspension is terrible. It's like an old Lincoln town car when you go over speed humps bouncing away.

Peatys · 17-06-2019 07:22PM

SteelyDanJalapeno wrote: »

quite the hit

I know. But can't take another 3 years in it. I've a three hour spin to work (stay over).. so 6 hours minimum a week in it.

Wildly Boaring · 17-06-2019 07:26PM

Peatys wrote: »

Seats are very uncomfortable for anything longer than an hour, and the suspension is terrible. It's like an old Lincoln town car when you go over speed humps bouncing away.

Yikes. I actually had a thread on something similar

https://touch.boards.ie/thread/2057963022/1/#post109628935

Get down to a Volvo garage and see if they've any interest sorting a deal, seems to be the gist of it.

PCP finance.

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