PCP finance.

markad1 · 25-01-2016 09:04PM

Ron Burgundy II wrote: »

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

I did ask about the 5 speed box, I even checked on the vw build page and the 1.6 is 5 speed.
If led headlights was an option I would have picked it over xenon headlights.
I had xenon on the last car and loved them.
Best of luck with the new car

vintagevrs · 25-01-2016 09:05PM

Ron Burgundy II wrote: »

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

It was indeed Mr Burgundy. She looks well. How are you finding it? They are a well kitted out car as far as tech goes.

25-01-2016 09:19PM

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.

I you drive in a lot of traffic DSG is good but yeah, you can go mad on extras.

25-01-2016 09:20PM

One of the best ways to ensure more value in the car on PCP is to drive it as little as possible. Less miles mean more cash on trade in.

Drummerboy08 · 25-01-2016 09:31PM

[Deleted User] wrote: »

One of the best ways to ensure more value in the car on PCP is to drive it as little as possible. Less miles mean more cash on trade in.

The difference between a 3 year old car with 40k on it and 60k on it is minimal.

vintagevrs · 25-01-2016 09:39PM

Drive it as little as possible!? I'd hate to own a car and be afraid to drive it for sake of trade in value. Drive it whenever you like.

markad1 · 25-01-2016 09:46PM

Drummerboy08 wrote: »

The difference between a 3 year old car with 40k on it and 60k on it is minimal.

Bet the dealer would devalue it alot more if your pcp agreement was for 40k and you were handing it back with 60k.

If I go over the limit and the dealer devalues it I'll pay off the balance and drive it till the wheels fall off

Drummerboy08 · 25-01-2016 09:50PM

markad1 wrote: »

Bet the dealer would devalue it alot more if your pcp agreement was for 40k and you were handing it back with 60k

If you're handing it back with 20,000 more km than it should have then you get hit with an excess mileage charge, which is very clear from the outset what happens and how much it costs.

Also if you're handing the car back, you're handing it back to the bank in most cases, not the dealer. Most banks underwrite the GFV, not the dealers themselves.

25-01-2016 09:53PM

Drummerboy08 wrote: »

If you're handing it back with 20,000 more km than it should have then you get hit with an excess mileage charge, which is very clear from the outset what happens and how much it costs.

Also if you're handing the car back, you're handing it back to the bank in most cases, not the dealer. Most banks underwrite the GFV, not the dealers themselves.

I think he means trading it rather than handing it back and walking away ?

Drummerboy08 · 25-01-2016 09:55PM

[Deleted User] wrote: »

I think he means trading it rather than handing it back and walking away ?

In that case the dealer will only hit the value as hard as he needs to, otherwise it's a pointless exercise because he won't get the business.

markad1 · 25-01-2016 09:55PM

you couldn't hand it back and walk away leaving value in the car

Bigcheeze · 25-01-2016 11:20PM

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.

They have to be honest about it because they are selling a financial product and there are severe penalties for miss selling financial products.

Lantus · 26-01-2016 12:20AM

markad1 wrote: »

Bet the dealer would devalue it alot more if your pcp agreement was for 40k and you were handing it back with 60k.

If I go over the limit and the dealer devalues it I'll pay off the balance and drive it till the wheels fall off

I've been told that for anyone getting another car mileage is virtually ignored. The dealer wants your long term business. Those clauses exist to protect the market against high mileage fleet buyers.

Also if you hand the car back (madness) you can be penalised. This is because the lender wants to leverage the best deal possible. The customer loses all their equity carried over from 3 years ago. Another lose.

26-01-2016 12:30AM

You don't have to wait 3 years though, I'm changing after a year ! Mad but hey, not costing a fortune to go to a new car, the reason ? longer EV range and faster charging + I'm an EV enthusiast.

Costing me about 100 PM more with no cash but I get about 40 or so back PM by not having to charge at home or at least much much less thanks to the work charge point.

26-01-2016 12:30AM

You don't have to wait 3 years though, I'm changing after a year ! Mad but hey, not costing a fortune to go to a new car, the reason ? longer EV range and faster charging + I'm an EV enthusiast.

Costing me about 100 PM more with no cash but I get about 40 or so back PM by not having to charge at home or at least much much less thanks to the work charge point.

Ron Burgundy II · 26-01-2016 10:12AM

vintagevrs wrote: »

It was indeed Mr Burgundy. She looks well. How are you finding it? They are a well kitted out car as far as tech goes.

Finding it a very nice car to drive in comparison to the last car (Passat). The technology pack VW offered really adds to the car. So far so good.

carsfan · 26-01-2016 07:57PM

I was looking at the finance offers on the BMW website.
The figures they show for the 3 series have a GFV of about 45-46% after 3 years.
Is this not way too high to give you any equity at the end of the deal? I bought a golf and the figure is 38% which seems more reasonable.
I know Beemers are low depreciators but they're not that good.
Is this not just a ploy to keep the monthlies low on the surface? Surely this will come back to bite in a few years.

vintagevrs · 26-01-2016 08:28PM

The risk there though is for bmw and not the customer. No equity in the car is simply because you have paid less into it. When people talk about equity in the car at the end of their pcp agreement, it's their money. They have paid in more than the market value of the car. If the gfv is too high, throw the keys on their desk in three years and walk away knowing you handed in a car that is worth less than what you owe on it. It's then the finance company's issue.

flamegrill · 26-01-2016 08:31PM

vintagevrs wrote: »

The risk there though is for bmw and not the customer. No equity in the car is simply because you have paid less into it. When people talk about equity in the car at the end of their pcp agreement, it's their money. They have paid in more than the market value of the car. If the gfv is too high, throw the keys on their desk in three years and walk away knowing you handed in a car that is worth less than what you owe on it. It's then the finance company's issue.

I'd have to agree. But will say that in general BMW have done a pretty good job at keeping second hand prices high. They did it with Mini and they've done it with their own cars. Bit odd, but it works for them.

Whu557 · 26-01-2016 08:32PM

Went for a PCP deal last year but finally thought well I'm not ever going to actually own it and I do more mileage than what most companies were asking I do a year. So went with HP least after the 5 years I will fully own the car. But at least the option is there for people to upgrade every 3 years keeps the 2nd hand car market alive

Voodoomelon · 26-01-2016 08:36PM

It was mentioned earlier on that the sweet spot for a deposit would be in the region of 10% for most cars, to keep the monthly payments realistically high and the future deposit after 3 years on a new car just as low as the first one.

Does that not mean paying a considerable amount more in interest, with a 10% deposit compared to say a 30% deposit?

Some of BMWs deposits are 30%, so €15,000 on a €50,000 car. Dropping that deposit to 10% or €5000, which is a €10,000 difference and at 3.9% is a €600 interest penalty.

vintagevrs · 26-01-2016 08:41PM

That's exactly right.

People like the idea that they pay a monthly repayment that will allow them to change in 3 years with no deposit for the 2nd pcp term as their first pcp term has equal equity to the new deposit. But as you say, this means more interest, which can be a fair chunk.

vintagevrs · 26-01-2016 08:41PM

That's exactly right.

People like the idea that they pay a monthly repayment that will allow them to change in 3 years with no deposit for the 2nd pcp term as their first pcp term has equal equity to the new deposit. But as you say, this means more interest, which can be a fair chunk.

Lantus · 26-01-2016 08:48PM

Voodoomelon wrote: »

It was mentioned earlier on that the sweet spot for a deposit would be in the region of 10% for most cars, to keep the monthly payments realistically high and the future deposit after 3 years on a new car just as low as the first one.

Does that not mean paying a considerable amount more in interest, with a 10% deposit compared to say a 30% deposit?

Some of BMWs deposits are 30%, so €15,000 on a €50,000 car. Dropping that deposit to 10% or €5000, which is a €10,000 difference and at 3.9% is a €600 interest penalty.

Again you have to work the numbers to satisfy yourself of the best deal. A very high interest rate would make a very low deposit less beneficial so use the manufacturers calculator to work multiple scenarios. Compare to a variety of loans at your disposal and if comparing different models asses tax and other running costs.

I got my PCP deal on zero interest so it made no odds where I shifted the deposit versus monthly. Of course I set it so the equity in 3 years would be roughly what my deposit was. That way I should get a similar monthly if I roll into a new cycle.

carsfan · 26-01-2016 10:59PM

I suppose I was looking at it from the point of view of having equity at the end of 3 years but fully appreciate the other side of smaller payments.
I suppose as ever with the whole pcp lark if you know what you're at and are realistic as to what to expect there is no great mystery to it.

Kaiser84 · 05-02-2016 11:32AM

Hi,

I'm currently thinking of going for a Skoda Octavia on a PCP. For those of you that have already got a nee car this way, did you get to haggle on anything?

Get extras thrown in, get a deposit contribution, haggle on the price?

I'm only asking as I've always bought used cars with credit union loans or with my savings. I've never bought new before.

Skoda are offering 0% finance so I'm not sure if there'll be much room for haggling.

Any advice is greatly appreciated.

Thanks.

Drummerboy08 · 05-02-2016 11:35AM

Haggle away on the price of the car, doesn't affect the PCP side of things

Kaiser84 · 05-02-2016 11:48AM

Drummerboy08 wrote: »

Haggle away on the price of the car, doesn't affect the PCP side of things

Thanks for the reply.

For a car that's around 26/28k, how much couldI reasonably expect to get knocked off the price do you think?

sillysocks · 05-02-2016 01:14PM

For anyone that's signed up for PCP did you need much documentation by way of bank statements etc to get the approval? Need to talk to the dealer I know but won't be able to until after the weekend so just wondering what might be needed?

GavMan · 05-02-2016 01:55PM

sillysocks wrote: »

For anyone that's signed up for PCP did you need much documentation by way of bank statements etc to get the approval? Need to talk to the dealer I know but won't be able to until after the weekend so just wondering what might be needed?

Get together a few months payslips and bank statements I would guess.

PCP finance.

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