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PCP finance.

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Comments

  • #482
    jca
    Closed Accounts Posts: 8,585 ✭✭✭jca


    Kaiser84 wrote: »
    That's word for word what I was told too, so that's good to hear.

    My boss put 115,000 kms on a 142 Ford connect he got on pcp. He changed for a 161 in January and it didn't affect the valuation.

    As you said and we've been told it's surely just a measure from the dealers to protect themselves from fleet owners.

    I can't see dealerships moving the goalposts so much that they'll piss off thousands of people on pcp in 3 years.

    I don't share your optimism on that one tbh. Dealers aren't going to want too many 100/ 150k 3 year old cars sitting on their lot. I think they'll do what they've always done, insult you with a value and only be interested in the low mileage cars. PCP would suit me and especially the dealer as I struggle to do 10k a year but in saying that I still don't trust them, as I've said before car salesmen have extremely short memories and 3 years is a lifetime to them.


  • #483
    jca
    Closed Accounts Posts: 8,585 ✭✭✭jca


    Kaiser84 wrote: »
    Can you link me to this on the Skoda site please? I can't find it on the site any where.

    Thanks.

    I can't unfortunately because on reflection I think it was the local salesman who said it to me. I'm after looking at so many cars and being on so many sites my poor skull is imploding.


  • #484
    Kaiser84
    Registered Users, Registered Users 2 Posts: 189 ✭✭Kaiser84


    jca wrote: »
    I can't unfortunately because on reflection I think it was the local salesman who said it to me. I'm after looking at so many cars and being on so many sites my poor skull is imploding.

    Haha. I'm the same.

    I got the dealer to write down on paper everything we've agreed thus far for that reason too.


  • #485
    jca
    Closed Accounts Posts: 8,585 ✭✭✭jca


    Kaiser84 wrote: »
    Haha. I'm the same.

    I got the dealer to write down on paper everything we've agreed thus far for that reason too.

    That's a good idea, they can tend to suffer from "selective memory"


  • #486
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    It is 20,000km per year on the Skoda PCP.

    Doesn't make a huge amount of difference if your mileage turns out to be even up to 10,000km more per year - I'll just value the car as a 3 year old car with 90k on it instead of 60k, so the drop in equity is probably no more than a 1000 euro.

    When you start getting to the point that the extra mileage has depreciated the car to the extent that it's worth less than the GFV then you're in trouble.


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  • #487
    flamegrill
    Registered Users, Registered Users 2 Posts: 1,862 ✭✭✭flamegrill


    Drummerboy08 wrote: »
    It is 20,000km per year on the Skoda PCP.

    Doesn't make a huge amount of difference if your mileage turns out to be even up to 10,000km more per year - I'll just value the car as a 3 year old car with 90k on it instead of 60k, so the drop in equity is probably no more than a 1000 euro.

    When you start getting to the point that the extra mileage has depreciated the car to the extent that it's worth less than the GFV then you're in trouble.

    Typically the max is 25k. It's model dependant. Also the GMFV is affected by your choice of mileage.

    I'm not sure that 60k to 90k is only going to drop 1000 euro. The problem really comes down to the dealer is the one doing the valuation and they always want you to put money in. So you need to ensure you don't give them a reason to give you a **** valuation.


  • #488
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    flamegrill wrote: »
    Typically the max is 25k. It's model dependant. Also the GMFV is affected by your choice of mileage.

    I'm not sure that 60k to 90k is only going to drop 1000 euro. The problem really comes down to the dealer is the one doing the valuation and they always want you to put money in. So you need to ensure you don't give them a reason to give you a **** valuation.

    With skoda there is a 30k option on the Superb, but not on the Octavia.

    Would you pay 1000 more for a car with 30k less on it?

    Best way to ensure the valuation is correct is to price a couple of dealers, no different than you would normally. You're not tied to one dealer with a PCP agreement.


  • #489
    sunnysoutheast
    Registered Users, Registered Users 2 Posts: 2,072 ✭✭✭sunnysoutheast


    flamegrill wrote: »
    Pcp is not hire purchase. You never own the car. You're essentially leasing it for a term.

    You are not leasing the car. A lease does not (usually) have a meaningful purchase option. With Hire Purchase, as with a PCP, you do not legally own the goods until the final payment is made. With a PCP, simply pay the balloon payment and the car is yours.

    A PCP is nothing more than a secured loan (on the vehicle) with a large deferred payment. As there is no capital repayment of this sum during the term the monthly payments are lower than with conventional HP.

    The US has been selling cars in this way for 30 years and the UK for getting on for 20, I took out my first "PCP" (actually called a lease with a purchase option as the car was a pre-reg. and PCPs at that time were only for new cars) on a Golf in 1998.


  • #490
    Nonoperational
    Registered Users, Registered Users 2 Posts: 7,401 ✭✭✭Nonoperational


    It's really quite a good product if you go in knowing what it's about. In 3 years my GFV is 14k. The car will almost certainly be worth a bit more. If the roll over doesn't suit, I'll just buy it for 14k cash and trade it in against a different marque if that's what I want to do. I'm in a position where my job is pretty much guaranteed and i'll have the cash to pay off the 14k if needs be. At an interest rate of 1.9% I found it very preferable to a bank loan at 8%. At that APR I prefer to take the finance rather than depleting the savings by 40k all in one go. Some people will say that's stupid but it worked remarkably well for me.


  • #491
    Lantus
    Registered Users, Registered Users 2 Posts: 3,027 ✭✭✭Lantus


    My mileage was well above the 20k which I was up front about. Again told that its not an issue. No need to even note this.

    Also if you were lucky enough to buy an e189 engine in a Skoda, vw or Audi you can expect 1500 in money towards the next car as well as a good will gesture. Combined with the lowest interest rates or almost zero its just more good news for those drivers.


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  • #492
    mickdw
    Registered Users, Registered Users 2 Posts: 23,918 ✭✭✭✭mickdw


    Lantus wrote: »
    My mileage was well above the 20k which I was up front about. Again told that its not an issue. No need to even note this.

    Also if you were lucky enough to buy an e189 engine in a Skoda, vw or Audi you can expect 1500 in money towards the next car as well as a good will gesture. Combined with the lowest interest rates or almost zero its just more good news for those drivers.

    Its that 1500 going to happen here


  • #493
    Falcon L
    Closed Accounts Posts: 891 ✭✭✭Falcon L


    FWIW, my thoughts/questions/ramblings on PCP.

    Over the 3 year term it's likely that a new model will be launched. How will this affect the market value of your (old model) car? How can you do your homework on the market value when the model is only 2 or 3 years into it's run? The value of the older model really muddies the water.

    Is a lower GFV always a better deal?

    Mileage doesn't seem to be a huge factor. I was quoted 6c per Km over the agreed mileage, with the rider that "the mileage is really between you and me" comes from the dealer. It actually works out cheaper to sign up for 10K, do 15K and pay for the kms than it is to sign up for 15K and do 15K.

    Some garages are acting the sack with the finance. I went to one dealer that was quoting 6.9% for the PCP finance. Another dealer of the same marque told me that the bank is in-house and the rate is 4.9%. On returning to the original dealer and asking if the finance was with the in-house bank, the % magically dropped to 4.9%. The finance guy was obviously selling me a product that gave him, personally, a higher commission. Be careful of this one when working out a deal.

    Any thoughts on the above would be appreciated.


  • #494
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    mickdw wrote: »
    Its that 1500 going to happen here

    Not that I've seen anywhere.


  • #495
    Kaiser84
    Registered Users, Registered Users 2 Posts: 189 ✭✭Kaiser84


    Drummerboy08 wrote: »
    With skoda there is a 30k option on the Superb, but not on the Octavia.

    Would you pay 1000 more for a car with 30k less on it?

    Best way to ensure the valuation is correct is to price a couple of dealers, no different than you would normally. You're not tied to one dealer with a PCP agreement.

    So at the end of my 3 years I don't have to go back to Skoda? Just so long asI clear the balloon payment, is it?


  • #496
    flamegrill
    Registered Users, Registered Users 2 Posts: 1,862 ✭✭✭flamegrill


    Kaiser84 wrote: »
    So at the end of my 3 years I don't have to go back to Skoda? Just so long asI clear the balloon payment, is it?

    Nope, you don't have to go to Skoda. As long as Car value is greater than the baloon payment in the eyes of other dealers, which it may not!

    What I see happening is people trying to sell their car and making a few quid and walking away and entering into another agreement with another Car company.

    it's a hard one to call.


  • #497
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    Kaiser84 wrote: »
    So at the end of my 3 years I don't have to go back to Skoda? Just so long asI clear the balloon payment, is it?

    Nope. You're free to go to any dealer or any brand (although for some reason I think Ford may try to tie you in to staying with the brand, no sure) and whatever value they put on your car the GFV comes off that.


  • #498
    737max
    Closed Accounts Posts: 993 ✭✭✭737max


    Are these PCP deals any good for a senior citizen travelling on low mileage who wants to treat themselves to a new car but without the hassle of actually owning the car and perhaps retiring from driving at the end of the credit agreement period?
    Which companies allow 10k km distances per year?


  • #499
    Falcon L
    Closed Accounts Posts: 891 ✭✭✭Falcon L


    737max wrote: »
    Are these PCP deals any good for a senior citizen travelling on low mileage who wants to treat themselves to a new car but without the hassle of actually owning the car and perhaps retiring from driving at the end of the credit agreement period?
    Which companies allow 10k km distances per year?
    Renault go as low as 10K. Most seem to start at 15K.


  • #500
    mickdw
    Registered Users, Registered Users 2 Posts: 23,918 ✭✭✭✭mickdw


    737max wrote: »
    Are these PCP deals any good for a senior citizen travelling on low mileage who wants to treat themselves to a new car but without the hassle of actually owning the car and perhaps retiring from driving at the end of the credit agreement period?
    Which companies allow 10k km distances per year?

    Not great tbh as if they are going to hand the car in at year 3, they will be dumping a fair bit of cash into the dealers hands in the form of a car worth significantly more than what they owe on it to buy it outright


  • #501
    gocall01
    Registered Users, Registered Users 2 Posts: 233 ✭✭gocall01


    MuppetCheck wrote: »
    Depends on the garage tbh. I'd say if you could sell your own privately you'd be in a much better position though.

    If you want the details of a really good Skoda guy in Cork let me know. He bettered anything I got elsewhere by a considerable amount and was refreshingly straight up to deal with.

    Was that is Bandon by any chance MuppetCheck?
    In the middle of all the research at the moment.


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  • #502
    GustavoFring
    Registered Users, Registered Users 2 Posts: 3,087 ✭✭✭GustavoFring


    gocall01 wrote: »
    Was that is Bandon by any chance MuppetCheck?
    In the middle of all the research at the moment.

    Using another account due to stupid password problems but yeah, that's the crowd. If you want any more info send me a PM.


  • #503
    gocall01
    Registered Users, Registered Users 2 Posts: 233 ✭✭gocall01


    GustavoFring wrote: »
    Using another account due to stupid password problems but yeah, that's the crowd. If you want any more info send me a PM.


    I was in there on Saturday after my next door neighbour bought the Skoda Octavia Combi (Estate).

    The deal quoted to me was similar to what was quoted to someone else earlier.
    Deal: Skoda (Octavia Ambition 1.6 TDI 110bhp) was:

    Car Cost €26,500

    0% finance

    Deposit: €5000

    Remaining Finance after 3 years: €11000

    Value of car after 3 years: €16000
    (I think this figure is realistic but would be prepared for a grand less if needs be)

    Monthly payment for 3 years: €275


    Fair usage on mileage was discussed, think I will do 20000Kms/annum but even if I do 25000Kms/annum, no issues.
    Will be wanting to get that in writing obviously.

    I had no intention of even looking at new cars, was looking at 2011 or 2012 (at 6.9% finance) but then the neighbour rolled up and hey presto!!!

    Am 90% sure I'll be going down the new car (on 0% PCP) route...


  • #504
    sunnysoutheast
    Registered Users, Registered Users 2 Posts: 2,072 ✭✭✭sunnysoutheast


    gocall01 wrote: »
    I was in there on Saturday after my next door neighbour bought the Skoda Octavia Combi (Estate).

    The deal quoted to me was similar to what was quoted to someone else earlier.
    Deal: Skoda (Octavia Ambition 1.6 TDI 110bhp) was:

    Car Cost €26,500

    0% finance

    Deposit: €5000

    Remaining Finance after 3 years: €11000

    Value of car after 3 years: €16000
    (I think this figure is realistic but would be prepared for a grand less if needs be)

    Monthly payment for 3 years: €275


    Fair usage on mileage was discussed, think I will do 20000Kms/annum but even if I do 25000Kms/annum, no issues.
    Will be wanting to get that in writing obviously.

    I had no intention of even looking at new cars, was looking at 2011 or 2012 (at 6.9% finance) but then the neighbour rolled up and hey presto!!!

    Am 90% sure I'll be going down the new car (on 0% PCP) route...

    No way will an Octavia have a real 16/26.5k = 60% retained value after 3 years and 75k km. That is Evoque territory. Maybe if you roll into a new PCP with Skoda with "dealer deposit contribution".

    Was the GMFV they gave you 11k?


  • #505
    Kenny Logins
    Registered Users, Registered Users 2 Posts: 9,061 ✭✭✭Kenny Logins


    sunnysoutheast wrote: »
    No way will an Octavia have a real 16/26.5k = 60% retained value after 3 years and 75k km. That is Evoque territory. Maybe if you roll into a new PCP with Skoda with "dealer deposit contribution".

    Was the GMFV they gave you 11k?

    Cheapest one on DD right now is €16,650 (66k km, 2012). Maybe..


  • #506
    Damien360
    Registered Users, Registered Users 2 Posts: 7,248 ✭✭✭Damien360


    Kenny Logins wrote: »
    Cheapest one on DD right now is €16,650 (66k km, 2012). Maybe..

    That's the asking price. Not a hope of seeing that.

    Ambition spec is low. Still 50% loss on 3 years so closer to 13/14 would be more realistic.


  • #507
    gocall01
    Registered Users, Registered Users 2 Posts: 233 ✭✭gocall01


    gocall01 wrote: »
    I was in there on Saturday after my next door neighbour bought the Skoda Octavia Combi (Estate).

    The deal quoted to me was similar to what was quoted to someone else earlier.
    Deal: Skoda (Octavia Ambition 1.6 TDI 110bhp) was:

    Car Cost €26,500

    0% finance

    Deposit: €5000

    Remaining Finance after 3 years: €11000

    Value of car after 3 years: €16000
    (I think this figure is realistic but would be prepared for a grand less if needs be)

    Monthly payment for 3 years: €275


    Fair usage on mileage was discussed, think I will do 20000Kms/annum but even if I do 25000Kms/annum, no issues.
    Will be wanting to get that in writing obviously.

    I had no intention of even looking at new cars, was looking at 2011 or 2012 (at 6.9% finance) but then the neighbour rolled up and hey presto!!!

    Am 90% sure I'll be going down the new car (on 0% PCP) route...



    Thanks for the replies on this guys.
    One thing I didn't include originally was that I am a cash buyer so I will be hammering the initial asking price.
    Also intend to add a few extras (might balance everything out), nothing mad but I do like heated seats!!!

    I am pretty sure on the figures (usually really anal on these things when the decision is such a large one and one I had no intention of pursuing initially).
    I will be going back in on Saturday armed with all the finer details I have collected from this brilliantly informative thread.

    A few test drives will be had on the new models and some 2012 cars they have in stock.

    I will let ye know if any cracks appear and the later decisions.


  • #508
    Drummerboy08
    Closed Accounts Posts: 12,102 ✭✭✭✭Drummerboy08


    Damien360 wrote: »
    That's the asking price. Not a hope of seeing that.

    Ambition spec is low. Still 50% loss on 3 years so closer to 13/14 would be more realistic.

    I don't know,;I don't think 16k is a million miles away.

    Either way, it won't be too far from getting the original deposit back in 3 years time.


  • #509
    gocall01
    Registered Users, Registered Users 2 Posts: 233 ✭✭gocall01


    sunnysoutheast wrote: »
    No way will an Octavia have a real 16/26.5k = 60% retained value after 3 years and 75k km. That is Evoque territory. Maybe if you roll into a new PCP with Skoda with "dealer deposit contribution".

    Was the GMFV they gave you 11k?

    I probably agree here on the price after 3 years but quite prepared for a €15k figure and will see after that.
    I will reconfirm the figures but am pretty sure they are correct per the salesman.
    As I type, my intention of the 3 options available after 3 years would be to return 161 and go again with the 191, finance permitting.

    I have a €5k deposit with an albeit to be reconfirmed and believed €5K difference between outstanding finance (€11K) and market value after 3 years (€16K).

    If all holds up to even close to these numbers, I am in a happy place! :)


  • #510
    Kenny Logins
    Registered Users, Registered Users 2 Posts: 9,061 ✭✭✭Kenny Logins


    Damien360 wrote: »
    That's the asking price. Not a hope of seeing that.

    Ambition spec is low. Still 50% loss on 3 years so closer to 13/14 would be more realistic.

    Yeah, I get that, but this is the lowest asking price one right now.


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  • #511
    ctlsleh
    Registered Users, Registered Users 2 Posts: 790 ✭✭✭ctlsleh


    Has anyone actually come out the other side of a PCP?
    it would be interesting if they could share how it all worked out in terms of what was promised at the outset and what happened in the end........?


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