PCP finance.

Drummerboy08 · 24-01-2016 02:36PM

ShadowHearth wrote: »

If thats the case, then no surprise second hand market is ****ed outside of bangornomics **** boxes. Everyone just getting cheap run around or a brand new car.
No wonder I am having issues selling my car right now.

The second hand market is fcuked because people didn't buy cars in 08/09/10/11 and as a result there is now a shortage of good second hand cars on the market.

This results in the value of second hand cars becoming stronger - supply and demand - and close the purchase price to a new car.

Hasn't really anything to do with PCP.

pippip · 24-01-2016 02:55PM

Drummerboy08 wrote: »

The second hand market is fcuked because people didn't buy cars in 08/09/10/11 and as a result there is now a shortage of good second hand cars on the market.

This results in the value of second hand cars becoming stronger - supply and demand - and close the purchase price to a new car.

Hasn't really anything to do with PCP.

Yeh but low repayments on PCP is the only reason a lot of these people can even afford a brand new car. If that option wasn't there the car markets here would be completely different.

Drummerboy08 · 24-01-2016 02:58PM

pippip wrote: »

Yeh but low repayments on PCP is the only reason a lot of these people can even afford a brand new car. If that option wasn't there the car markets here would be completely different.

PCP is available on used vehicles also.

Not really sure what difference it makes in any case.

ShadowHearth · 24-01-2016 04:27PM

Drummerboy08 wrote: »

The second hand market is fcuked because people didn't buy cars in 08/09/10/11 and as a result there is now a shortage of good second hand cars on the market.

This results in the value of second hand cars becoming stronger - supply and demand - and close the purchase price to a new car.

Hasn't really anything to do with PCP.

It actually does. If your average Joe has 5-7k eu to spend, he most likely fascinated with pcp and go with pcp instead of second car. Dealers are pushing new cars over used stock too. It was mentioned already.
That's just my opinion, which could be wrong too.

Drummerboy08 · 24-01-2016 04:42PM

ShadowHearth wrote: »

It actually does. If your average Joe has 5-7k eu to spend, he most likely fascinated with pcp and go with pcp instead of second car. Dealers are pushing new cars over used stock too. It was mentioned already.
That's just my opinion, which could be wrong too.

Yeah but that's down to the individual and his decision, not what the market dictates.

carsfan · 24-01-2016 05:06PM

Re second hand values, I'm looking at cars that new are 60-65k but at a year old or 18 months the dealers are asking 55 to 58 k.
I always thought a car lost the most on its first year so in my head a car that is 65 new should be 50 after a year or 18 months. I don't see that and so at the current asking prices it makes no sense not to go new and have a brand new car to your own spec.
I don't see what this has to do with the car market from 2009 to 2013.
I reckon the sterling situation has stopped many imports so the supply of cheaper high spec second hand cars has reduced also after the crash people now want to treat themselves again and a new car for a reasonable outlay on pcp fits the bill for that.

jca · 24-01-2016 10:48PM

carsfan wrote: »

Re second hand values, I'm looking at cars that new are 60-65k but at a year old or 18 months the dealers are asking 55 to 58 k.
I always thought a car lost the most on its first year so in my head a car that is 65 new should be 50 after a year or 18 months. I don't see that and so at the current asking prices it makes no sense not to go new and have a brand new car to your own spec.
I don't see what this has to do with the car market from 2009 to 2013.
I reckon the sterling situation has stopped many imports so the supply of cheaper high spec second hand cars has reduced also after the crash people now want to treat themselves again and a new car for a reasonable outlay on pcp fits the bill for that.

Your last sentence is where the future problems lie, "reasonable outlay" but it isn't reasonable outlay as a poster said earlier, the hard way or the easy way the car will have to be paid for in full. Many I talk to about it think that it's giving them a new car every 3 years for small monthly payments...

markad1 · 25-01-2016 11:00AM

I have a new VW golf on order and will be availing of pcp with an apr of 1.9% The gfmv is 10k. The financial person was upfront saying when the 3 years is up it will cost in the region of 4k to change into a new golf with the same spec I ordered.
I was surprised to hear this but appreciated the honest approach.

25-01-2016 01:17PM

markad1 wrote: »

I have a new VW golf on order and will be availing of pcp with an apr of 1.9% The gfmv is 10k. The financial person was upfront saying when the 3 years is up it will cost in the region of 4k to change into a new golf with the same spec I ordered.
I was surprised to hear this but appreciated the honest approach.

What spec, Engine did you get , what was the total cost ?

markad1 · 25-01-2016 02:01PM

1.6tdi 5 speed Highline with "few" extras coming in around 32k ish.

Lantus · 25-01-2016 02:06PM

markad1 wrote: »

I have a new VW golf on order and will be availing of pcp with an apr of 1.9% The gfmv is 10k. The financial person was upfront saying when the 3 years is up it will cost in the region of 4k to change into a new golf with the same spec I ordered.
I was surprised to hear this but appreciated the honest approach.

That could be the case if you traded in an existing car which had a high value. That would lower your monthly payments. At the end the equity is about the same irrespective of your initial deposit. So to keep monthly payments the same you'd need to invest more capitol. Maybe that's what they meant?

All but the oldest cars will have some value which could create a scenario like this.

Drummerboy08 · 25-01-2016 02:34PM

Lantus wrote: »

That could be the case if you traded in an existing car which had a high value. That would lower your monthly payments. At the end the equity is about the same irrespective of your initial deposit. So to keep monthly payments the same you'd need to invest more capitol. Maybe that's what they meant?

All but the oldest cars will have some value which could create a scenario like this.

Thats exactly what he meant I think.

With VW, around 20% deposit is ideal, there's usually around 20% equity in them after 3 years.

Falcon L · 25-01-2016 02:52PM

Lantus wrote: »

That could be the case if you traded in an existing car which had a high value. That would lower your monthly payments. At the end the equity is about the same irrespective of your initial deposit. So to keep monthly payments the same you'd need to invest more capitol. Maybe that's what they meant?

All but the oldest cars will have some value which could create a scenario like this.

In this scenario, can you opt to have higher monthly payments to cover any future shortfall?

I suppose that leads to my other question: can you set a monthly payment that would enable you to keep paying the same monthly amount and keep renewing the car every 3 years, without further lump sum payment?

I appreciate that your payments might have to rise due to inflation, higher new car costs etc.

25-01-2016 05:53PM

markad1 wrote: »

1.6tdi 5 speed Highline with "few" extras coming in around 32k ish.

What are the extras ? just curious.

Ron Burgundy II · 25-01-2016 06:28PM

markad1 wrote: »

1.6tdi 5 speed Highline with "few" extras coming in around 32k ish.

Highline should be 6 speed. Trendline and I believe comfortline are 5 speed in the golf range.

My highline golf 1.4TSI has 6 speed gearbox .

25-01-2016 06:32PM

Does no one opt for the DSG or would they rather have more gadgets ?

DSG would be brilliant with Auto Cruise. It's great in the A4 my Brother has , scared the crap out of me int he beginning but I could imagine the benefit on congested motorways.

25-01-2016 06:32PM

Does no one opt for the DSG or would they rather have more gadgets ?

DSG would be brilliant with Auto Cruise. It's great in the A4 my Brother has , scared the crap out of me int he beginning but I could imagine the benefit on congested motorways.

Ron Burgundy II · 25-01-2016 06:48PM

Deleted User wrote: »

Does no one opt for the DSG or would they rather have more gadgets ?

DSG would be brilliant with Auto Cruise. It's great in the A4 my Brother has , scared the crap out of me int he beginning but I could imagine the benefit on congested motorways.

Well I didn't spec too much on my car, just a winter pack and one or two small items. VW offered a technology pack with the car as part of the 161 offer. DSG had crossed my mind but I felt it would suit a more powerful car than mine. Also it's adds a nice bit of money to the car. It was pushing me beyond the limit I wanted to spend.

mickdw · 25-01-2016 07:09PM

Falcon L wrote: »

In this scenario, can you opt to have higher monthly payments to cover any future shortfall?

I suppose that leads to my other question: can you set a monthly payment that would enable you to keep paying the same monthly amount and keep renewing the car every 3 years, without further lump sum payment?

I appreciate that your payments might have to rise due to inflation, higher new car costs etc.

Basically what you need to do is work out how much over the gfv the car will be worth at end of year 3. This is the deposit you would have on next car without further cash investment.
Now look at current Proposed purchase..... If you can afford the monthly payment with a deposit similar to what you will have next time around, you are in great shape and should be able to jump from new car to new car every 3 years without further cash deposit.
If on the other hand you can only afford the car now because you are going in with a large deposit that had built up in your old car, you will find yourself in trouble at year 3 as you will need to come up with cash or else much larger payments.

markad1 · 25-01-2016 07:16PM

Had a loan of a 1.6 diesel with dsg, I didn't like it. The new highline has 5 speed box, I queried it thinking it should be 6.
The extras I put on are r line exterior, tech pack, xenon lights, rear led and winter pack.

Falcon L · 25-01-2016 07:20PM

mickdw wrote: »

Basically what you need to do is work out how much over the gfv the car will be worth at end of year 3. This is the deposit you would have on next car without further cash investment.
Now look at current Proposed purchase..... If you can afford the monthly payment with a deposit similar to what you will have next time around, you are in great shape and should be able to jump from new car to new car every 3 years without further cash deposit.
If on the other hand you can only afford the car now because you are going in with a large deposit that had built up in your old car, you will find yourself in trouble at year 3 as you will need to come up with cash or else much larger payments.

Thanks Mick.

So, am I right in summarising that PCP works best if you start off on the right foot, and the best way to work it is to keep monthly payments as high as you can comfortably live with?

vintagevrs · 25-01-2016 07:23PM

markad1 wrote: »

Had a loan of a 1.6 diesel with dsg, I didn't like it. The new highline has 5 speed box, I queried it thinking it should be 6.
The extras I put on are r line exterior, tech pack, xenon lights, rear led and winter pack.

Throw up a few pictures when you get a chance. The led rear lights are a nice extra as well as xenons.

markad1 · 25-01-2016 07:54PM

vintagevrs wrote: »

Throw up a few pictures when you get a chance. The led rear lights are a nice extra as well as xenons.

This was a petrol one I looked at

https://www.dropbox.com/s/fh9rz7dix98hvkw/Golf%20Back.jpg?dl=0

vintagevrs · 25-01-2016 08:03PM

markad1 wrote: »

This was a petrol one I looked at

Aw sorry just realising you just ordered. Another poster posted an R line golf recently that they picked up, assumed it was the same car. What colour did you go for?

*I think your Dropbox photo is set to private as I can't see that btw.

markad1 · 25-01-2016 08:17PM

Fixed the link. Went with the white same as the pic

vintagevrs · 25-01-2016 08:21PM

0bNgVmRX_ZvMvP9rbxvgSBFo3II7lPu9qEYXV0v0w0s?size_mode=3&size=1024x768

Looks well!

March/April delivery is it?

markad1 · 25-01-2016 08:26PM

Thanks for fixing that. March delivery ordered Nov'15.
VW were offering the 1.9% on it

I looked at a few other brands using PCP and they were all offering insurance to make up any difference with the GFMV in case you had an accident.
Sounds good but I imagine they are getting commission from the insurance policies they sell

markad1 · 25-01-2016 08:27PM

Double post ???

Ron Burgundy II · 25-01-2016 08:54PM

Are xenons worth the price? VW quoted me €1200 to add them to my car. A lot of my driving is mainly city so didn't see the need to add them.

But in saying that I do like the look the leds, and the xenons give the car.

I would ask VW about the five speed gearbox, the car is better suited to a six speed gearbox. I just got my r line golf on Friday last and its a six speed.

vintagevrs that may have been my car you're referring the black r line golf

mickdw · 25-01-2016 08:55PM

Falcon L wrote: »

Thanks Mick.

So, am I right in summarising that PCP works best if you start off on the right foot, and the best way to work it is to keep monthly payments as high as you can comfortably live with?

Well I would say if you can afford the car with about 15 percent deposit, you are fine.
It's only dangerous when people hand in their fully owned trade in to make up the max deposit and then can barely afford the repayments also. In that case, it is my opinion that they cannot realistically afford the car and won't be able to fund the next one.

PCP finance.

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