How did PCP work out in the end?

Heres Johnny · 12-11-2020 2:40pm

ELM327 wrote: »

Yes, that's why I said net 200 instead of gross 200. So that 200pcp will actually cost you 400pcm in gross income!

Thats not how tax works. Unless your average tax is 50%. Which it isnt. You cant say that about every expense you have.

ELM327 · 12-11-2020 2:43pm

Heres Johnny wrote: »

Thats not how tax works. Unless your average tax is 50%. Which it isnt. You cant say that about every expense you have.

If you take 200 off the top of your net takehome wages (ie let's say 3500 reduced to 3300) that is actually 400 as the portion you take off is subject to 52% tax.

How is that not how tax works. Please enlighten me.

CoBo55 · 12-11-2020 3:40pm

Lads this thread is getting ridiculous..

12-11-2020 3:42pm

Cmacc4 wrote: »

I’m thinking of going ahead with the deal
Maybe I’m being totally naive but I can’t imagine the 181 megane depreciating totally to the 7900 mark................

It'll be effectively 6 years old.......... could well be offered under €8k for that as a trade in when the time comes.

Cmacc4 wrote: »

.......... 50 euro a week for a car like that seems too good to be true.

Yeah, it is when you forget the ........

Cmacc4 wrote: »

The 4,700 is cash, I have a buyer organised for my own Focus, private sale of €1,200

and the €8k owed at the end if you want to keep driving it.

12-11-2020 3:47pm

SteelyDanJalapeno wrote: »

PCP will affect you mortgage application, your stress test will be -200 from the get go.........

Go with a fixed rate for a few years and there's no stress test

Cmacc4 · 12-11-2020 3:58pm

Salesman is basically saying there's no way the car wont be worth 7,900 in 3 years time
Come up with a deposit of 3-4K and go again on another rolling PCP or finance the remainig the 7,900 myself with a loan or a HP.
I'm thinking of pulling the plug on the deal and just waiting and seeing again in a few weeks.
Honestly my head is tortured with this.

Heres Johnny · 12-11-2020 4:14pm

ELM327 wrote: »

If you take 200 off the top of your net takehome wages (ie let's say 3500 reduced to 3300) that is actually 400 as the portion you take off is subject to 52% tax.

How is that not how tax works. Please enlighten me.

Are you paying for the car only with wages portion that is taxed at higher rate?
Why not pay for it with the portion of wages that your tax credits reduce to zero which is 16,500 a year?
Or the portion of wages that is taxed at 20%

If you earn 40,000 you pay no income tax on 16,500, 20% on the next 19,000 and 40% above that...add your usc and prsi of course

Average tax rate incl PAYE, PRSI and USC for someone on 40k is approx 20%, not 52% of their income. You don't choose which portion of your income is spent on your car, your house, your groceries, your pints...

ELM327 · 12-11-2020 4:16pm

Heres Johnny wrote: »

Are you paying for the car only with wages portion that is taxed at higher rate?
Why not pay for it with the portion of wages that your tax credits reduce to zero which is 16,500 a year?
Or the portion of wages that is taxed at 20%

If you earn 40,000 you pay no income tax on 16,500, 20% on the next 19,000 and 40% above that...add your usc and prsi of course

Average tax rate incl PAYE, PRSI and USC for someone on 40k is approx 20%, not 52% of their income. You don't choose which portion of your income is spent on your car, your house, your groceries, your pints...

All correct, except when you deduct money from your wages, it's the highest point that gets deducted first.

Cmacc4 · 12-11-2020 4:16pm

I'm literally an accountant and you're all talking absolute mule on the tax things by the way.

12-11-2020 4:17pm

Cmacc4 wrote: »

Salesman is basically saying there's no way the car wont be worth 7,900 in 3 years time.........

He's correct as it's the GFMV

However "I can’t imagine the 181 megane depreciating totally to the 7900 mark"......... it might well be worth just that........ or a tad under if there's a scratch, ding or three on it.

ELM327 · 12-11-2020 4:20pm

Cmacc4 wrote: »

I'm literally an accountant and you're all talking absolute mule on the tax things by the way.

I'm literally a level 2 CFA and you're wrong by the way

SteelyDanJalapeno · 12-11-2020 4:38pm

DaveyDave wrote: »

A lot of people get car finance. It isn't necessarily going to have a negative impact on their mortgage depending on their income.

Regardless of their income, it reduces your repayment capacity by 200euro per month, it's all just numbers to the bank, they will subtract 200 from your during their repayment calculations, and the stress test.

L-M · 12-11-2020 9:09pm

Just buy the car and be done with it.

You could buy a piece of crap for 5000 and waste the rest on maintenance and repairs.

You could take out a HP Loan over 5 years at a higher interest rate and take the risk of the car being worth less than 7900 in 3 years.

Simple maths, €200 a month with a 3 year warranty and a very fuel efficient diesel. And a good car.

If in three years it’s worth more, great. If in three years it’s worth less, even better.

Go for it and be happy.

CoBo55 · 12-11-2020 11:46pm

L-M wrote: »

Just buy the car and be done with it.

You could buy a piece of crap for 5000 and waste the rest on maintenance and repairs.

You could take out a HP Loan over 5 years at a higher interest rate and take the risk of the car being worth less than 7900 in 3 years.

Simple maths, €200 a month with a 3 year warranty and a very fuel efficient diesel. And a good car.

If in three years it’s worth more, great. If in three years it’s worth less, even better.

Go for it and be happy.

Exactly. Ditch the spreadsheets and enjoy the bloody car:D

DriveSkill · 28-04-2021 4:58pm

Thought I would just share my own experience of PCP
181 Passat Highline

Purchase price : €37,000 (approx, cant remember exactly)
Deposit : €14,000 (again approx, not sure exactly - traded a car that was worth more so went with max deposit and got about €5,000 back)
Monthly Repayment : €310 x 36 months

GFMV : €13,856

Finished start of April and I paid off the GFMV as wasnt sure what I was going to change to. In the end trade-in offers for the Passat were around €19,500 as the 'trade price' with one exception being €22,000! This is just the trade price for the Passat and then depending on the car there was an additional discount offered off the "sticker" price of the car being purchased - ranged from €0 to €2,500.
So in summary equity at the end of the deal was approx €6,000 <-> €8,500
Happy enough in the end how it worked for me.

CoBo55 · 28-04-2021 6:03pm

DriveSkill wrote: »

Thought I would just share my own experience of PCP
181 Passat Highline

Purchase price : €37,000 (approx, cant remember exactly)
Deposit : €14,000 (again approx, not sure exactly - traded a car that was worth more so went with max deposit and got about €5,000 back)
Monthly Repayment : €310 x 36 months

GFMV : €13,856

Finished start of April and I paid off the GFMV as wasnt sure what I was going to change to. In the end trade-in offers for the Passat were around €19,500 as the 'trade price' with one exception being €22,000! This is just the trade price for the Passat and then depending on the car there was an additional discount offered off the "sticker" price of the car being purchased - ranged from €0 to €2,500.
So in summary equity at the end of the deal was approx €6,000 <-> €8,500
Happy enough in the end how it worked for me.

Did you trade up or are you keeping the car? With the much lower deposit than the outgoing deal your monthly repayments would take a big jump unless you put in another 7k or so.

DriveSkill · 28-04-2021 6:25pm

CoBo55 wrote: »

Did you trade up or are you keeping the car? With the much lower deposit than the outgoing deal your monthly repayments would take a big jump unless you put in another 7k or so.

Traded it against a 201 3-Series, still sorting finance but monthly cost will definitely go up (expected as car is more expensive), BMW PCP offer on their used cars is poor and even HP is not really competitive so will likely just get standard loan at 5.9% myself over 5 years with aim to pay off early.

Squeaksoutloud · 28-04-2021 6:25pm

Also have a 181 Passat with gmfv of 15k approx. Delighted to see those figures! Kept mine so didn't investigate but in that case I'd end up with a higher deposit second time round than going in.

CoBo55 · 28-04-2021 6:33pm

DriveSkill wrote: »

Traded it against a 201 3-Series, still sorting finance but monthly cost will definitely go up (expected as car is more expensive), BMW PCP offer on their used cars is poor and even HP is not really competitive so will likely just get standard loan at 5.9% myself over 5 years with aim to pay off early.

Would you think the BMW is a nicer car than the Passat?

CoBo55 · 28-04-2021 6:34pm

Squeaksoutloud wrote: »

Also have a 181 Passat with gmfv of 15k approx. Delighted to see those figures! Kept mine so didn't investigate but in that case I'd end up with a higher deposit second time round than going in.

Passat's always held their value well. All VW's do in fairness.

DriveSkill · 28-04-2021 6:46pm

CoBo55 wrote: »

Would you think the BMW is a nicer car than the Passat?

Definitely, I've found a really nice spec one M-Sport with Comfort and Technology pack in a nice colour combination so I'm happy.

The Passat is a nice car and has very good tech even as standard (adaptive cruise, fully digital cockpit, blind spot, sign recognition etc) but I bought a manual after coming from an auto (there was no auto Passat available at the time) and regretted it pretty quickly.I also went from driving a 180bhp to the 120bhp 1.6D and also regretted that

so all in all I didnt "love" the car and happy to move it on. It is perfectly fine, reliable, never any issues with it, comfortable and economical but no element of excitement once the initial novelty of the new car wore off.

CoBo55 · 28-04-2021 7:01pm

DriveSkill wrote: »

Definitely, I've found a really nice spec one M-Sport with Comfort and Technology pack in a nice colour combination so I'm happy.

The Passat is a nice car and has very good tech even as standard (adaptive cruise, fully digital cockpit, blind spot, sign recognition etc) but I bought a manual after coming from an auto (there was no auto Passat available at the time) and regretted it pretty quickly.I also went from driving a 180bhp to the 120bhp 1.6D and also regretted that so all in all I didnt "love" the car and happy to move it on. It is perfectly fine, reliable, never any issues with it, comfortable and economical but no element of excitement once the initial novelty of the new car wore off.

That 1.6 engine would be a no no for me from the outset it's just so gutless it would drive you crazy. Maybe I'm wrong but I just can't see the point of ACC in a manual car or having it in a car with a manual handbrake I know the second part doesn't apply to the Passat but I had it in an Octavia and having to manually press the brake pedal just ruined it. It's always nice to do a complete change of car.

Water2626262 · 29-04-2021 1:41am

To be fair used stock will only get more scarce now post brexit, nox charge etc. Also with covid there will be a sharp drop in ex hire available. Good times for trading in or having your pcp mature.

mickdw · 29-04-2021 10:03am

Water2626262 wrote: »

To be fair used stock will only get more scarce now post brexit, nox charge etc. Also with covid there will be a sharp drop in ex hire available. Good times for trading in or having your pcp mature.

Good times for use stock but there appears to be a lack of supply on new stuff.
Parents travelled a few dealers looking at suv last week. No follow up from salesmen which is a first in all their years. All quoting lack of supply til 212

bazz26 · 29-04-2021 10:08am

There is a global part shortage on semiconductors which is having a knock on effect on car manufacturing especially with VAG brands.

mickdw · 29-04-2021 10:13am

bazz26 wrote: »

There is a global part shortage on semiconductors which is having a knock on effect on car manufacturing especially with VAG brands.

Ya but unlikely to get any kind of favourable deal when that is the state of play.

29-04-2021 11:24am

So went to VW garage this week.
Bought a 2016 VW Golf in 2018

Price: €23,950
Deposit: €5765
Monthly: €340
GFV: €7692
Interest 1.9%

Was offered €16000 for it so just over 8k in equity which isn’t too shabby. Can’t get a new one until October though due to delays and to get a similar 2019 model has a €4k premium on it since I bought this one.
Hard to know what to do! I really like the new one but waiting until October doesn’t sound like fun but the 0% finance for 2021 does!

CoBo55 · 29-04-2021 3:51pm

[Deleted User] wrote: »

So went to VW garage this week.
Bought a 2016 VW Golf in 2018

Price: €23,950
Deposit: €5765
Monthly: €340
GFV: €7692
Interest 1.9%

Was offered €16000 for it so just over 8k in equity which isn’t too shabby. Can’t get a new one until October though due to delays and to get a similar 2019 model has a €4k premium on it since I bought this one.
Hard to know what to do! I really like the new one but waiting until October doesn’t sound like fun but the 0% finance for 2021 does!

What are the figures for the new car?

29-04-2021 5:09pm

CoBo55 wrote: »

What are the figures for the new car?

2021 R Line Golf again, no money down is €365 and 4K down makes it €293 pm, with a 13k gfv.

CoBo55 · 29-04-2021 6:15pm

howwatermelon wrote: »

2021 R Line Golf again, no money down is €365 and 4K down makes it €293 pm, with a 13k gfv.

That’s very good, what engine is that? The 1.5 TSI manual? Is the spec good in the R line?

How did PCP work out in the end?

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