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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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bazz26

Yes but you get more car for your money.

Zurbaran

mickdw wrote: »

Completely nuts. Don't do it.
The corolla has improved but not 37k improved.

Any car with anything other than 0% finance is going to be more expensive. The most important thing is what I would get on the trade in, how much the monthly’s are, the final payment and the guess work which is how much you will be offered over that final payment.

It’s the last bit I’m thinking on as there is no sure thing with that. My best guess is that there will be a bit more value in a 3 year old hybrid toyota that competes performance wise and is better on fuel over competing companies 2.0ds or 1.5/1.4 petrols.

Zurbaran

bazz26 wrote: »

Yes but you get more car for your money.

It would be much closer to what I have now so would love one but can’t stretch that far. Not to mention this is a car for my girlfriend as well so needs to be suitable for a new driver.

Abba987

Don't do it. It doesn't add up. So much money and NOTHING at the end to show for it.

Finance. Second hand but not too old. Something to show for your cash at the end. What if at the end you are not in a position to start again ? All that gone

bazz26

Fair enough.

Lantus

Zurbaran wrote: »

Any thoughts on the following pcp for a corolla Luna sport 2.0l hybrid delivery and metallic paint included. Bit concerned looking at the final payment. Deposit and monthly are ok as the current car Loan will end around the time the 37 months will but from what I see from other manufactures that final payment is high.

Deposit is €12,326 (36%) monthly €261.53 (37months) and a balloon of €14,593 3.90% apr.

12k is a massive deposit around 30% which is the best scenario for buying a car outright. 260 is a very low monthly and you should budget 100 to 200 ideally extra a month to save to help pay off gmfv. 250 extra each month would give you 9k ready with just 3k to pay off.

If the thought of paying anything over 260 is abhorrent then query if you can really afford this car. Your next pcp when you trade in will be at around 12% deposit with a much higher monthly........ If you are planning to keep long term then fine.

Ask the dealer on the monthly based on a fair equity {deposit} of 4.5k and what the monthly will be.

Wildly Boaring

I think we're more shocked at the list price.

A focus is about 25k for a petrol and 27k for a diesel. From when I looked last year.

Appreciate you may not want a diesel but 10k pay for a lot of petrol.

Lots of other options under 30k in same class. Leon, ceed, i30......

ofcork

How are you trading your current car if there is a loan on it?

Casati

Wildly Boaring wrote: »

I think we're more shocked at the list price.

A focus is about 25k for a petrol and 27k for a diesel. From when I looked last year.

Appreciate you may not want a diesel but 10k pay for a lot of petrol.

Lots of other options under 30k in same class. Leon, ceed, i30......

The Corolla has 180bhp, what can you get under 30k with that kind of power? Maybe a Civic 1.5 might come close but I’d imagine similar money

DaveyDave

Casati wrote: »

The Corolla has 180bhp, what can you get under 30k with that kind of power? Maybe a Civic 1.5 might come close but I’d imagine similar money

The Corolla Luna Sport is €33k. The 180hp Civic top spec auto is €33k. I think the 150hp Golf Highline DSG is similar money. All are very similar performance. Golf would have better finance options, the others are both 3.9%. Corolla lower running costs. A well specced 150hp DSG Leon FR would cost €32k with the same performance. Although performance isn't everything.

I'd personally go for the Civic over the Corolla.

Zurbaran

Abba987 wrote: »

Don't do it. It doesn't add up. So much money and NOTHING at the end to show for it.

Finance. Second hand but not too old. Something to show for your cash at the end. What if at the end you are not in a position to start again ? All that gone

Just re finance if I don’t want a new one.

Zurbaran

Lantus wrote: »

12k is a massive deposit around 30% which is the best scenario for buying a car outright. 260 is a very low monthly and you should budget 100 to 200 ideally extra a month to save to help pay off gmfv. 250 extra each month would give you 9k ready with just 3k to pay off.

If the thought of paying anything over 260 is abhorrent then query if you can really afford this car. Your next pcp when you trade in will be at around 12% deposit with a much higher monthly........ If you are planning to keep long term then fine.

Ask the dealer on the monthly based on a fair equity {deposit} of 4.5k and what the monthly will be.

As mentioned it’s 36%. I’m paying a current car loan. This is the reason I’m happy to go full deposit as I’m looking at the loan and the monthly’s as one amount. So in essence I’m paying around 480 a month all in. In 3 years time I would need a big enough deposit to make the monthly payment be around 480 if I was to go again.

Zurbaran

DaveyDave wrote: »

The Corolla Luna Sport is €33k. The 180hp Civic top spec auto is €33k. I think the 150hp Golf Highline DSG is similar money. All are very similar performance. Golf would have better finance options, the others are both 3.9%. Corolla lower running costs. A well specced 150hp DSG Leon FR would cost €32k with the same performance. Although performance isn't everything.

I'd personally go for the Civic over the Corolla.

Whilst performance is like a petrol the fuel costs are more diesel so it it’s a bit of an inbetweener. The Honda is a good example as the spec is very similar along with price although the mpg seems to be very different going by what owners are saying and the Corolla still performs a bit better performance wise. Civic is bigger though but for me I had ruled it out as I just don’t like the back of it with the black plastic bits to make it more sporty looking.

I did spec a golf to match it with the 2.0d dsg. It came to just under 37k. I wouldn’t go for a new car when they are replacing it in a few months. It would definitely eat at me.. So same goes as the Leon and Octavia. To add to that the smoothness of the hybrid is brilliant compared to conventional engines so that’s another plus for the Corolla over the competition for me.

Casati

Zurbaran wrote: »

Whilst performance is like a petrol the fuel costs are more diesel so it it’s a bit of an inbetweener. The Honda is a good example as the spec is very similar along with price although the mpg seems to be very different going by what owners are saying and the Corolla still performs a bit better performance wise. Civic is bigger though but for me I had ruled it out as I just don’t like the back of it with the black plastic bits to make it more sporty looking.

I did spec a golf to match it with the 2.0d dsg. It came to just under 37k. I wouldn’t go for a new car when they are replacing it in a few months. It would definitely eat at me.. So same goes as the Leon and Octavia. To add to that the smoothness of the hybrid is brilliant compared to conventional engines so that’s another plus for the Corolla over the competition for me.[/

Ultimately on paper it’s expensive but not more than the competitors so if it’s what you like go for it. If your not trading in I’d be expecting a discount off that retail price mind you

Lantus

Zurbaran wrote: »

As mentioned it’s 36%. I’m paying a current car loan. This is the reason I’m happy to go full deposit as I’m looking at the loan and the monthly’s as one amount. So in essence I’m paying around 480 a month all in. In 3 years time I would need a big enough deposit to make the monthly payment be around 480 if I was to go again.

Your still going to be paying a loan on the car you are trading in? Seems tough. If you like car go for it though.

hooch-85

Will you be approved for PCP when you have a current car loan outstanding?

Cyrus

Lantus wrote: »

Your still going to be paying a loan on the car you are trading in? Seems tough. If you like car go for it though.

are you trading the car the loan is on? if thats the case you get that loan cleared and whats left over goes in as your deposit.

Lantus

Cyrus wrote: »

are you trading the car the loan is on? if thats the case you get that loan cleared and whats left over goes in as your deposit.

I'm assuming it's a credit union loan so technically there is no outstanding finance on car. Still, buying a new car before old one is paid off seems a bit odd but is acceptable and as long as op can afford fine.

Zurbaran

Yeah it’s a personal loan. Shouldn’t have any problem being approved.

L-M

teednab-el wrote: »

Lads can you do a deal with vw bank after the 3 years is up to pay remainder of car without buying a new car and entering pcb again. Im on pcb at the moment.

Just so you know you can refinance the balloon payment over a further term of up to 36 months with/without a deposit at 5.9% apr currently which will beat any bank/credit union if you’re not in a position to pay it off. Make sure you go in to a dealer at least 20days before the ballon is due.

beggars_bush

37000 for a Corrolla?

You can actually buy a house for that
https://touch.daft.ie/cavan/houses-for-auction/corlough/corlisbannan-dowra-corlough-cavan-2207851

And have change

Jack lemmon

bazz26 wrote: »

You don't have to involve the car salesman or go near the dealer. Your PCP agreement is with a bank or finance company, they normally inform you towards the end of the PCP term telling you when the balloon payment is due for payment. You can ring them up and make the settlement payment.

All correct, though with vw you don’t even have to ring either, on the final payment they’ll take the Guaranteed Minimum Future Value (GMFV) amount also. Just make sure there’s enough to clear it in account.

mickdw

beggars_bush wrote: »

37000 for a Corrolla?

You can actually buy a house for that
https://touch.daft.ie/cavan/houses-for-auction/corlough/corlisbannan-dowra-corlough-cavan-2207851

And have change

You would have some craic driving that up the motorway.

phill106

beggars_bush wrote: »

37000 for a Corrolla?

You can actually buy a house for that
https://touch.daft.ie/cavan/houses-for-auction/corlough/corlisbannan-dowra-corlough-cavan-2207851

And have change

ah but no nct on it....im guessing its a bit smokey...

SteelyDanJalapeno

beggars_bush wrote: »

37000 for a Corrolla?

You can actually buy a house for that
https://touch.daft.ie/cavan/houses-for-auction/corlough/corlisbannan-dowra-corlough-cavan-2207851

And have change

Relevance?

You could buy 37,000 Mars Bars for it and have plenty change

Zurbaran

Mad how people keep bringing up the 37k. It includes the amount paid in finance and as pointed out by others that’s what cars in this area cost nowadays.

JoeyJJ

Cleared my PCP last month, car all paid off now thankfully.

Just be careful if Finance is from a different bank you may need to do multiple payments credit transfer can often be limited to 10k between banks and 5k on card payments.

XsApollo

Anybody handed a car back at the end?
Was it to the dealer or through VW bank.
On the VW website it says hand it in to the dealer , on the phone they said send an email to them and they will get back and send a truck to pick it up.

mickdw

Has to be madness surely unless you made a terrible purchase day 1

XsApollo

Yea just bad timing.
About to start a house purchase and refinancing will complicate that and my funds are being used to pay for the house.
Had planned to pay off the GMFV.
It is stupid but more important things have popped up.

And no it wasn’t a bad purchase
Car is in the green by about 3 or 4K at least.