How did PCP work out in the end?

ShadowHearth · 10-01-2019 09:37PM

jimmycrackcorm wrote: »

The car is worth more than 10k. The extra amount can be yours if you planned to hold on to the car.
The toyota dealer will handkerchief everything for you. You don't have to be concerned other than what your new payment figures will be

No pcp is structured to be confusing

It is not. Its a form of finance. All you need to do is read it and understand it. I am honestly shocked how much people are confused by this concept.
I do have respect for people who actually come over here and ask if they dont understand it, instead of buying car on pcp and then asking how it works.

There were plenty of posts already, which explained how it works. At this point we will need to bring crayons out. :pac:

Water John · 10-01-2019 09:44PM

TMK it was introduced here first by VW Bank. It used to tie you more to the car maker. Suited rollover buyers, esp if you had to trade it in, refinance it or hand the keys back.

Wildly Boaring · 10-01-2019 10:35PM

Water John wrote: »

TMK it was introduced here first by VW Bank. It used to tie you more to the car maker. Suited rollover buyers, esp if you had to trade it in, refinance it or hand the keys back.

Exactly it perfectly suits those who change every 3 years anyway.

0% finance and they have very little capital wrapped up in car while the dealer and manufacturer still get as much money.

The massive upside for the manufacturer are those like myself who have bought new and never would. I'd usually buy 1 to 3 year old and keep for a couple years.

photosmart · 25-11-2019 05:55PM

Just bumping this thread as we're heading into 2020 and given the amount of PCP deals that were done in 161/171 it would be useful for many to see what trade in values / cost to change for the different brands are after three years

Skoda seem to be a good option for PCP given their strong resale values but I know some of the other brands fare out considerably worse.

Anyone care to share their experience?

mickdw · 25-11-2019 06:09PM

Should be plenty evidence now of people having rolled I to new Pcp across all manufacturers.
I'm going to take a guess and say bmw buyers will have faired worst in nearly all circumstances.
Vw, Skoda possibly best in terms of being able to get a 2nd Pcp without throwing money at it.

easyvision · 25-11-2019 06:13PM

Yes Id love to see some examples as Im thinking of going PCP next year, possibly on the new golf. I like to change every 2-3 years anyway as I easily get bored of cars and itch to change!

micks_address · 25-11-2019 06:23PM

So here's my experience.
I had a 2 litre diesel automatic Octavia 172, style spec with sportline kit, added canton speakers and dab radio. Car cost 35.5k. 0 percent interest with service plan included and monthly was 386.

Last week I ordered a VW Tiguan, 1.5 petrol dsg with tech pack. Retail 42.5k. 1500 purchase contribution from vw, free services included as part of 201 event.

Deal is based on settlement of my Skoda PCP end of Jan. Deposit 5k, payment increases to 440 per month.

VW offered me 4k more in trade in than my Skoda dealer was offering.

I'm rationalising in my own head as the Tiguan is 7k more expensive than my Octavia was. So 5k deposit plus about 1800 extra in payments over 3 years sort of makes sense.

I was looking at 5k next spring for a like for like Octavia.

Cheers,
Mick

I Am The Law · 25-11-2019 06:44PM

micks_address wrote: »

So here's my experience.
I had a 2 litre diesel automatic Octavia 172, style spec with sportline kit, added canton speakers and dab radio. Car cost 35.5k. 0 percent interest with service plan included and monthly was 386.

Last week I ordered a VW Tiguan, 1.5 petrol dsg with tech pack. Retail 42.5k. 1500 purchase contribution from vw, free services included as part of 201 event.

Deal is based on settlement of my Skoda PCP end of Jan. Deposit 5k, payment increases to 440 per month.

VW offered me 4k more in trade in than my Skoda dealer was offering.

I'm rationalising in my own head as the Tiguan is 7k more expensive than my Octavia was. So 5k deposit plus about 1800 extra in payments over 3 years sort of makes sense.

I was looking at 5k next spring for a like for like Octavia.

Cheers,
Mick

Can I ask what was the deposit on Octavia in 2017?

micks_address · 25-11-2019 06:47PM

I Am The Law wrote: »

Can I ask what was the deposit on Octavia in 2017?

I think it was approx 8k. I think I had 3k equity from my civic tourer and put in 5 along with it.

micks_address · 25-11-2019 06:50PM

micks_address wrote: »

I think it was approx 6 or 7k. I think I had 3k equity from my civic tourer and put in 3.5k along with it.

My previous deal is somewhere back in the thread

SteelyDanJalapeno · 27-11-2019 12:59AM

VW seem pretty decent with their trade in values.

Seat were offering me 13k for my 161 fr Leon was 25k pre reg.
VW offered 15.5k so I took them up on a golf 1.5tsi 150bhp, I added about 2k to keep the repayments of about 400 similar

rustynutz · 27-11-2019 09:51AM

I'm going into my third PCP contract after Christmas. So far so good. I have gone over the mileage allowed by about 10- 15% in each case and it was never a factor at trade in time. I bought a Ateca in 2017 and was considering buying it out at the end of the current contract but when I checked what the payments would be if I got a loan with 5.9% apr over 3 years for the balanced owed, I could trade up to a new car on 0% for around the same monthly payments (350 - 370). So that's what I did. PCP is great as long as you understand it. The 0% finance is really attractive.

micks_address · 27-11-2019 10:25AM

Yeah i think the 0 percent makes it worthwhile.. its amazing the spread of offers you can get coming close to end of a PCP for your car.

Skoda offered me 18k
Honda offered me 19k
One VW offered me 15k
Final VW offered me 22.5k

Obviously the more you get for your trade in the better.

Also its pretty much nigh on impossible to change to another car while in PCP until the last 6 months. Mine isnt actually up till July so technically i've changed early. I priced at year one and year two and wasn't going to add up.

I'd also caution against adding extra's like i did to my last car. If you want to minimize depreciation then go for a spec that will hold its value best.

Its interesting watching the tv at the moment. I'm forced to sit through I'm a celebrity live as kids won't wait for it to record.

Tons of adds for Hyundai and Toyota, i havent seen any VW family adds. Maybe they figure most people have done their deals now for 201. Probably shorter lead time on a toyota than a VW/Skoda/Seat..

Cheers,
Mick

rustynutz wrote: »

I'm going into my third PCP contract after Christmas. So far so good. I have gone over the mileage allowed by about 10- 15% in each case and it was never a factor at trade in time. I bought a Ateca in 2017 and was considering buying it out at the end of the current contract but when I checked what the payments would be if I got a loan with 5.9% apr over 3 years for the balanced owed, I could trade up to a new car on 0% for around the same monthly payments (350 - 370). So that's what I did. PCP is great as long as you understand it. The 0% finance is really attractive.

carsfan2 · 27-11-2019 11:36AM

Anybody with a BMW gone through pcp care to share?
From what I have seen they set their gmfv too high for there to be any equity at the end.

hooch-85 · 27-11-2019 11:47AM

Posted this in the other main PCP thread, but would like to get opinions here too, we are kinda in two minds about what to do...

Thinking of changing the wife's car in 2020, she bought a new Seat Ibiza FR in Mar '18.
It's two years old in March and the dealer called last week asking if we were interested in trading up for 2020. The car has been faultless, my wife has a commute of 100kms a day and it's averaged over 50mpg from the little 1.0 TSi, it's only the 95hp version.

We would like a little more space as we travel up to the in laws quite a bit and have a dog so we were looking at the Leon ST as a replacement in FR trim. There is a 130bhp 1.5 TSi available starting at a bit over €28k, with a few boxes ticked like metallic, winter pack and parking sensors it's a smidgen over €29k.

The numbers we've gotten are:
Settlement figure as of Saturday €11,862 should be under €11k come next February
Trade in value €16k ~ €5k equity
Deposit €1k
Repayments going from 253 to 357 a month.
0% finance, currently on 1.9%.

This seems manageable and a good deal to me as we are getting back the full amount we financed and going onto 0%. Also there's 53kms on the car now so will be just approaching the 60k limit come time to trade. If we wait until the end of the PCP term in 2021 there will be 80-90k on it so not sure what kind of trade in we would get then.

I know there is a new Leon coming in winter 2020 but I reckon this will be a nice step up price wise, the FR spec is good and it's a decent looking car.

Opinions on the numbers, do they look fair? Also has anyone driven the Leon with this engine, what did you think? We are yet to drive one.

photosmart · 27-11-2019 01:59PM

Hi there,

I would recommend going for the Ateca over the Leon. I would imagine that the payments would be similar (you could check) but it will probably hold a lot more value over the three years which would give you some options at the end of the PCP contract. I would expect the leon to take a hammering on depreciation and be worth very little in three years time.

P

Heres Johnny · 27-11-2019 02:33PM

With my accountants hat on from a previous life I hope everyone knows PCP is a cashflow focused product, not a cost focused product.

The amount of people telling me their new car only costs x a month on PCP is nuts

Generally they are only paying a portion of the car and don't take deposit into account.

A deposit of 5000 is about 150 a month in payments that people don't realise.

That said, I've absolutely no problem with PCP once people understand what the hell they are paying for. If it gets you a nice car and that makes you happy, great. But when people tell me the car is costing 300 a month I get the chills.

Financial illiteracy bothers me greatly, nice new cars are great though.

Wildly Boaring · 27-11-2019 02:52PM

At this stage people surely realise there is no free lunch.

In our house we have about 45k worth of cars on the driveway. They cost approx 50k originally

We have 22k of our money in them by now. We owe vw bank the rest. Half at 0 or 1.9% the other half in balloon. (One car was secondhand but VW gave 5k at 0% to purchase)

This means we had 28k towards house purchase that otherwise we'd have in the cars or need to save to change them. Or older cars for next 5 or 6 years and still need to get a large loan at that stage...

micks_address · 27-11-2019 03:21PM

The main winners with PCP are the manufacturers, unless you have a lot of spare cash or want to keep your car for 5 to 7 years from new, they are very likely to get you into a new car... VW have it best of all as if you buy a skoda, vw, audi, seat etc.. its all their money.. id be slow enough to get into a PCP that isn't 0%

Its usually a good indicator of market demand though - so cars on 0% are probably not in demand or likely to be in demand long term..

Lantus · 27-11-2019 03:45PM

micks_address wrote: »

Its usually a good indicator of market demand though - so cars on 0% are probably not in demand or likely to be in demand long term..

That's almost every skoda and vw at some point over the last 3 years!!

The new facelifted superb is currently zero even given the gap between the incoming octavia which I'm told will be at least 3k more across the range.

photosmart · 27-11-2019 03:57PM

"Normal" cars are fast becoming far too expensive and out of the reach of ordinary people. Octavia etc which I've heard accurately described as auto white goods should not be in excess of €30,000.

Even the "bargain" car - Dacia duster recently went up from an affordable 17,000 for base diesel model to almost 20,000.

PCP deals can hide this massive appreciation if people go into the first deal with some equity but then over a few years the equity is wiped out and when

they look to start again they get a shock.

Heres Johnny · 27-11-2019 04:25PM

photosmart wrote: »

"Normal" cars are fast becoming far too expensive and out of the reach of ordinary people. Octavia etc which I've heard accurately described as auto white goods should not be in excess of €30,000.

Even the "bargain" car - Dacia duster recently went up from an affordable 17,000 for base diesel model to almost 20,000.

PCP deals can hide this massive appreciation if people go into the first deal with some equity but then over a few years the equity is wiped out and when

they look to start again they get a shock.

You are right, the prices are colossal. Fair enough it was a BMW dealership but I went for a look at a used 530e at lunchtime in a Dublin based dealership and had a look at the new cars while I was there, there were 2 lovely VERY well specced 520d and 320d there both in white and looked gorgeous.

The 520d was well over 70k and the 320d was 64k. Now I dont think people pay this but when these cars are doing approx 66% depreciation in 4-5 years they end up being so expensive.

Although that said, and I know it is VRT related but I had a 530i sport 2001 that had the original invoice in the glovebox and was in excess of 70k even back in 2001. Bought it it in 09 at the start of the recession for 8k if i remember correctly.

That said again, if a PCP suited me I would still go for it, but I like to buy in the 20k range nowadays on 4 to 5 year old cars that were triple that when new.

carsfan2 · 27-11-2019 04:36PM

I have thought that car prices have crept up a lot in the last few years. Manufacturers blame this on extra safety equipment and having to meet more stringent emissions targets. I don’t think wages and salaries of the average person has kept pace.
PCP masks the real cost of the car and is a handy tool for the dealers to sell to people that can manage the monthly outgoing but couldn’t necessarily come up with the full cost of the car.

ml100 · 27-11-2019 08:21PM

carsfan2 wrote: »

I have thought that car prices have crept up a lot in the last few years. Manufacturers blame this on extra safety equipment and having to meet more stringent emissions targets. I don’t think wages and salaries of the average person has kept pace.
PCP masks the real cost of the car and is a handy tool for the dealers to sell to people that can manage the monthly outgoing but couldn’t necessarily come up with the full cost of the car.

Some of the increases are to pay for the 0% PCP deals they are doing, look at some of the new vw cars, 0% pcp and €1500 finance contribution, ie cheaper to buy on pcp than cash, crazy!

FaganJr · 27-11-2019 09:55PM

When does it suit a person to get PCP??
What did we do before PCP?
What happens if you lose your job and can't pay PCP? I don't think I've ever heard a clear explanation of the consumers rights around this?
Is there protection insurance built in? Etc?
Credit union loans?
Cars are crazy money these days.
Anytime I've bought a car from a dealer their interest drops when I say no to in house finance.
Bought my last car in the UK saved 5k on same car here.
Paid cash , no banks, no loans.
I guess eyes opened after recession, if you can't pay for it , don't borrow for it.
Unless it's a house obviously.

NIMAN · 27-11-2019 09:57PM

FaganJr wrote: »

.. if you can't pay for it , don't borrow for it.
Unless it's a house obviously.

Funnily enough, it was people borrowing for houses they couldn't afford 15 to 12 years ago that got us into a terrible mess.

FaganJr · 27-11-2019 09:59PM

I wonder how many billion is tied up in cars?

Also houses usually bounce back in value, unless you remortgaged against it.

But all PCP cars will depreciate, like a lead balloon

The J Stands for Jay · 27-11-2019 10:07PM

hooch-85 wrote: »

Posted this in the other main PCP thread, but would like to get opinions here too, we are kinda in two minds about what to do...

Thinking of changing the wife's car in 2020, she bought a new Seat Ibiza FR in Mar '18.
It's two years old in March and the dealer called last week asking if we were interested in trading up for 2020. The car has been faultless, my wife has a commute of 100kms a day and it's averaged over 50mpg from the little 1.0 TSi, it's only the 95hp version.

We would like a little more space as we travel up to the in laws quite a bit and have a dog so we were looking at the Leon ST as a replacement in FR trim. There is a 130bhp 1.5 TSi available starting at a bit over €28k, with a few boxes ticked like metallic, winter pack and parking sensors it's a smidgen over €29k.

The numbers we've gotten are:
Settlement figure as of Saturday €11,862 should be under €11k come next February
Trade in value €16k ~ €5k equity
Deposit €1k
Repayments going from 253 to 357 a month.
0% finance, currently on 1.9%.

This seems manageable and a good deal to me as we are getting back the full amount we financed and going onto 0%. Also there's 53kms on the car now so will be just approaching the 60k limit come time to trade. If we wait until the end of the PCP term in 2021 there will be 80-90k on it so not sure what kind of trade in we would get then.

I know there is a new Leon coming in winter 2020 but I reckon this will be a nice step up price wise, the FR spec is good and it's a decent looking car.

Opinions on the numbers, do they look fair? Also has anyone driven the Leon with this engine, what did you think? We are yet to drive one.

€411 a month would lease one from leaseplan, and you'd have the 5k equity in your pocket.

L-M · 27-11-2019 10:36PM

McGaggs wrote: »

€411 a month would lease one from leaseplan, and you'd have the 5k equity in your pocket.

With a 3K deposit and 15kms annually, a lower spec one from Leaseplan would be 425 a month with no equity at the end, so no...

Lantus · 28-11-2019 11:34AM

FaganJr wrote: »

I wonder how many billion is tied up in cars?

Also houses usually bounce back in value, unless you remortgaged against it.

But all PCP cars will depreciate, like a lead balloon

All cars depreciate in the same manner irrespective of how its paid for.

However in light of recession talk some big players are currently shorting the market to the tune of billions in the believe a crash is imminent. Possibly not a great time to over extend on anything. Esp a car....

How did PCP work out in the end?

Comments