PCP finance.

NIMAN · 15-09-2019 12:34pm

I think PCP really caught on as people like the idea of paying E250, E350 per month or whatever, and having a new car without the worry about expensive repairs, nct etc.

They are happy not to own the car, as often by the time people actually own their car the traditional way it's old, expensive to run, worth little.

Throw in some free servicing, warranty, no repairs, maybe no tyres to change and it's a no brainer for those who haven't 25 or 30k lying around to go out and buy a decent car.

CoBo55 · 15-09-2019 12:54pm

BelovedAunt wrote: »

Lads what's the general consensus on PCP. My friend was telling me it's a good (but expensive) way of having a new car every three years, even if you never own it.

I think it's brilliant. You need to know what's involved particularly in 3 years time when the balloon payment is due, driving away in the second new car isn't as simple as the dealers portray especially if you started the first PCP with a high deposit/ trade-in.

bazz26 · 15-09-2019 2:30pm

BelovedAunt wrote: »

Lads what's the general consensus on PCP. My friend was telling me it's a good (but expensive) way of having a new car every three years, even if you never own it.

Have a read of some of this thread from the beginning. You don't have to read all 183 pages to get an understanding of it as many pages are just posters asking the same questions multiple times.

NIMAN · 15-09-2019 9:00pm

CoBo55 wrote: »

I think it's brilliant. You need to know what's involved particularly in 3 years time when the balloon payment is due, driving away in the second new car isn't as simple as the dealers portray especially if you started the first PCP with a high deposit/ trade-in.

Care to explain that point?

FarmerBrowne · 15-09-2019 9:05pm

NIMAN wrote: »

Care to explain that point?

I'm guessing they mean they had the 30% or very near first time round from the trade in which resulted in the lowest possible monthly repayments for the PCP, when changing subsequent times the equity alone in the car won't amount to 30% so higher monthly repayments (unless you throw in a bit of cash to get near the 30% again)

CoBo55 · 15-09-2019 9:09pm

FarmerBrowne wrote: »

I'm guessing they mean they had the 30% or very near first time round from the trade in which resulted in the lowest possible monthly repayments for the PCP, when changing subsequent times the equity alone in the car won't amount to 30% so higher monthly repayments (unless you throw in a bit of cash to get near the 30% again)

Exactly, thanks.

DriveSkill · 15-09-2019 9:14pm

FarmerBrowne wrote: »

I'm guessing they mean they had the 30% or very near first time round from the trade in which resulted in the lowest possible monthly repayments for the PCP, when changing subsequent times the equity alone in the car won't amount to 30% so higher monthly repayments (unless you throw in a bit of cash to get near the 30% again)

Exactly - that is what you need to be aware of.

Take simple example, first time around you are looking to PCP on a car for €30K, lets assume you have a trade-in for €10K, assume repayments of about €200 per month with a €10K GFMV after 3 years to keep it all simple.

So now you come back and your €30K car is worth maybe €15K but you owe €10K so you have €5K "equity" or deposit for the next new car. Therefore you are €5K short of the original deal so you either need to stump up €5K cash and keep your repayments at around the €200 mark or your repayments go up to maybe closer to €300....if you dont understand what you are getting in to this is what comes as a shock as most people believe they can roll over to the next version of the car they bought originally and keep repayments as they were.

If you had started with a €5K deposit on the first PCP you might be able to do that but once you go with a big deposit first time you need to either back it with cash or accept higher repayments next time around.

i57dwun4yb1pt8 · 15-09-2019 9:21pm

nothing wrong with a 0% PCP if you plan to ballon pay after 3 and keep for 5 years or more in total .

its free money at 0%

pity in my case it was a sh1tty skoda that i ended up with , if it had been a quality make .....

Toyotafanboi · 15-09-2019 9:24pm

NIMAN wrote: »

Care to explain that point?

3 years ago, I went alnost max deposit into a new Golf diesel Highline. We put down €9500 and the PCP payment was around €255 a month. GMFV was around €9750.

Re-PCP'd last month, Golf diesel Highline, offered 15k car for the car, that gave us a deposit, 5250, we put €1k cash onto that, €6250. That made the new PCP payment €395 because you still have to pay for a full two thirds of the car over the first 36 months, no matter what. That leave's the GMFV somewhere around €10k again*.

*all ballparky figures, dont remember 100%.

So a lower deposit increases the price per month, people who took our their first PCP with a middling deposit are more likely to continue into a second as their monthly payment will be more likely to stay similar as opposed to shooting upwards if you dont have a lump sum to put into the deal again.

NIMAN · 15-09-2019 9:29pm

I ask as I'm considering a PCP deal, and have a trade-in that's above even the max deposit.

So was trying to work out if I would put down 10% and take more cash back, or put down max 31% deposit and take a lower cheque from dealer.

trickybicky · 15-09-2019 10:38pm

Lantus wrote: »

Vw is typically 5.9 and payable over 1, 2 or 3 years. You can pay off early easy enough and the set up is seamless. Just one document to sign and some Id. I even had a 1 month gap between the old and new deal payment wise which was no issue.

If you pay via credit union the car is yours so even if economy goes bonkers and you default on cu loan they can't take car....

Do you know if they do a new credit check on you when moving from PCP to a finance loan to pay the balloon payment? Do you have to provide bank statements etc.?

bazz26 · 15-09-2019 10:41pm

They would be foolish not to.

CoBo55 · 15-09-2019 10:44pm

NIMAN wrote: »

I ask as I'm considering a PCP deal, and have a trade-in that's above even the max deposit.

So was trying to work out if I would put down 10% and take more cash back, or put down max 31% deposit and take a lower cheque from dealer.

It really depends on how much you want the monthly payments to be.

NIMAN · 15-09-2019 10:50pm

CoBo55 wrote: »

It really depends on how much you want the monthly payments to be.

If you have flexibility, would it make more sense to pay a higher monthly amount and less deposit?

As this is more likely to leave a renewed PCP deal with a new monthly payment similar to your old one?

mickdw · 15-09-2019 10:55pm

trickybicky wrote: »

Do you know if they do a new credit check on you when moving from PCP to a finance loan to pay the balloon payment? Do you have to provide bank statements etc.?

bazz26 wrote: »

They would be foolish not to.

If they approved you for a pcp 3 years earlier and if you declare no changes in circumstance, Id say checks are at the minimal end of the scale as after all they still have a secured asset same as when on pcp.

mickdw · 15-09-2019 10:59pm

NIMAN wrote: »

I ask as I'm considering a PCP deal, and have a trade-in that's above even the max deposit.

So was trying to work out if I would put down 10% and take more cash back, or put down max 31% deposit and take a lower cheque from dealer.

Personally id put down 15% but most important thing to firstly look at is to be sure they are giving you the a proper deal on you trade in.
Its too easy for them to screw you when they are adding in dealer contributions, any discount etc.
putting in 15% gives you a very good chance of being able to move to a new car putting in little to no deposit. Sure you could go for a very low monthly now but in 3 years you would be looking at increased monthly then. It could be argued that if someone cannot afford the monthly based on 15% deposit, they should look at a cheaper car.

Lantus · 16-09-2019 12:04am

NIMAN wrote: »

I ask as I'm considering a PCP deal, and have a trade-in that's above even the max deposit.

So was trying to work out if I would put down 10% and take more cash back, or put down max 31% deposit and take a lower cheque from dealer.

If your going to keep car long term max deposit or look at hp as it may suit better or cu loan.

If you want to roll over into new car go for 15pc deposit. Dealer may not give cash for that though.... Short term loan for deposit and sell car privately??

sillysocks · 16-09-2019 2:45am

trickybicky wrote: »

Do you know if they do a new credit check on you when moving from PCP to a finance loan to pay the balloon payment? Do you have to provide bank statements etc.?

We refinanced through the dealer and provided nothing like bank statements or salary certs for the refinance. Was very surprised.

NIMAN · 16-09-2019 9:34am

Lantus wrote: »

If your going to keep car long term max deposit or look at hp as it may suit better or cu loan.

If you want to roll over into new car go for 15pc deposit. Dealer may not give cash for that though.... Short term loan for deposit and sell car privately??

I always like to keep a fresh-ish car, so I would imagine that in 2/3 years time I would be considering changing again.

As it stands, my trade-in leaves me with cash back, even paying the max 31% deposit. I was going to max the deposit and this would have left a monthly of e300. The monthly amount is not really too concerning for me, so I am thinking it might be better to pay less of a deposit and pay e400 per month, from what you folk have said.

That way, when I change it is more likely the renewal monthly might be something similar.

ShadowHearth · 16-09-2019 3:26pm

NIMAN wrote: »

If you have flexibility, would it make more sense to pay a higher monthly amount and less deposit?

As this is more likely to leave a renewed PCP deal with a new monthly payment similar to your old one?

It depends. I personally took out my car with 25% deposit. Pretty high, but it keeps my monthly payments very low, which gives me ability to put away money each week to separate account. My PCP ends in May next year and I am only short 350eu from full balloon amount already. So when times comes I will have a lot less stress and more options to what to do. If I won't get a deal I want, I'll just pay it off as money for that already put away.
So it's your personal choice how you want to tackle it. I don't think there is a right answer of which is better, high or low deposit. Only how comfortable you are to deal with your finances and what works better for you personally.

vintagevrs · 16-09-2019 3:52pm

If the finance is free, then it makes more sense to go in with the lowest possible deposit, as the you are not paying interest on it from a mathematical point of view, as you are borrowing for free and technically that cash could be working for you elsewhere. In reality though, it probably makes little difference. 5K or 10k isn't going to earn you a lot of interest these days...so do what ever works for you.

Lantus · 16-09-2019 5:23pm

NIMAN wrote: »

I always like to keep a fresh-ish car, so I would imagine that in 2/3 years time I would be considering changing again.

As it stands, my trade-in leaves me with cash back, even paying the max 31% deposit. I was going to max the deposit and this would have left a monthly of e300. The monthly amount is not really too concerning for me, so I am thinking it might be better to pay less of a deposit and pay e400 per month, from what you folk have said.

That way, when I change it is more likely the renewal monthly might be something similar.

Get a quote for 15pc deposit to get an idea on monthly for next deal. If you go full deposit can you save money each month to pay off remainder or as next deposit?

NIMAN · 16-09-2019 5:41pm

Yeah to be fair, going with Max deposit gives me a cashback at the start of 7.5k v Gmfv of 11.3k

Cutting the deposit to 20% gives me a cashback of 10.8k, nearly the value of the Gmfv, so I could put that aside to have it to pay of Gmfv.

BTW, is the Gmfv negotiable?

ShadowHearth · 16-09-2019 6:14pm

NIMAN wrote: »

Yeah to be fair, going with Max deposit gives me a cashback at the start of 7.5k v Gmfv of 11.3k

Cutting the deposit to 20% gives me a cashback of 10.8k, nearly the value of the Gmfv, so I could put that aside to have it to pay of Gmfv.

BTW, is the Gmfv negotiable?

Nope, it's just 30% ( if I am not mistaken )of a whole price. The only way to lower it, is to lower over cars price.

Putting that away would be perfect. You don't need to pay off car, but next time you change you might use that as a little fund to bring up deposit for next car. For example in 3 years time next deposit is 10k, the car that you will give back might have 5k left for that deposit and you can take other 5k from that little fund. Still a nice sum leftover.

bazz26 · 16-09-2019 6:45pm

NIMAN wrote: »

Yeah to be fair, going with Max deposit gives me a cashback at the start of 7.5k v Gmfv of 11.3k

Cutting the deposit to 20% gives me a cashback of 10.8k, nearly the value of the Gmfv, so I could put that aside to have it to pay of Gmfv.

BTW, is the Gmfv negotiable?

The GMFV is set by the manufacturer and is the balance of what you owe on the car after 3 years. It's not negotiable. To have equity in the car in order to roll over to another PCP deal you need a trade in allowance value greater than the GMFV. The difference between the trade in allowance figure and the GMFV would be your equity or deposit towards the next PCP car.

vintagevrs · 16-09-2019 7:33pm

ShadowHearth wrote: »

Nope, it's just 30% ( if I am not mistaken )of a whole price. The only way to lower it, is to lower over cars price.
.

Gfmv is not calculated as 30% of the cost of the car. May not be a million miles away but it is set by the manufacturer and options on a car won't make a difference to it but will put the price of the car up. Shows that in reality they add little value to a car. For example, I remember for a golf the only option that made a difference to it (engine and trim level aside) was if it had a dsg gearbox. So sunroof, leather, dynaudio, big wheels etc made no difference. You could easily spend 7k on options with no impact on gfmv.

mickdw · 16-09-2019 8:12pm

vintagevrs wrote: »

Gfmv is not calculated as 30% of the cost of the car. May not be a million miles away but it is set by the manufacturer and options on a car won't make a difference to it but will put the price of the car up. Shows that in reality they add little value to a car. For example, I remember for a golf the only option that made a difference to it (engine and trim level aside) was if it had a dsg gearbox. So sunroof, leather, dynaudio, big wheels etc made no difference. You could easily spend 7k on options with no impact on gfmv.

Gfmv could be around 40 percent of new price in a lot of cases.
You can lower the gfmv (amount owed at end) meaning you payoff more of the car up front and will have more equity for next car. The way to lower it is to take out a deal with a high mileage allowance. It wouldn't make any sense to do that in reality.

sk8board · 17-09-2019 9:29am

sillysocks wrote: »

We refinanced through the dealer and provided nothing like bank statements or salary certs for the refinance. Was very surprised.

its not terribly unusual - PCP refinance is far less risky than starting a new PCP with a new customer, or indeed getting a 'normal' car loan, the latter could be 5 years to begin with.

the vast majority of balloon amounts will be under 20k - we had a new €29k Mk7 golf on 3 year PCP and have a €10k balloon - I wouldn't expect to provide more qualifying information in year 3 than in year 1, considering I've repaid every month on schedule.

To agree with another point above, as a simple rule - if the finance is 0%, I'd pay the lowest deposit possible. If theres an interest rate, I'd put in the max deposit (as the cash in the bank will never earn more than that interest rate).

DaveyDave · 17-09-2019 9:39am

Even if you are paying interest the cost of credit will be considerably lower than a bank or credit union loan. Apart from the likes of BMW I believe the higher end of PCP rates are around 5.9%? A bank loan is around 15% for 3 years up to 25% for 5 years.

In terms of PCP deposits, even if you're paying interest I wouldn't say throw in the biggest deposit possible. Work out a middle ground of comfortable monthly payments along with savings for a deposit or partial final payment. You won't be paying mad interest anyway.

I hate when people say if you put in a 30% deposit it's going to be more expensive second time around, that's not true. It's only true if you can't afford to save the deposit while also paying monthly payments. You also won't need as much second time around as long as you have some equity. When I was getting PCP on my Golf so many people were saying how it's more expensive next time as if it's a rule.

Lantus · 17-09-2019 11:58am

DaveyDave wrote: »

I hate when people say if you put in a 30% deposit it's going to be more expensive second time around, that's not true. It's only true if you can't afford to save the deposit while also paying monthly payments. You also won't need as much second time around as long as you have some equity. When I was getting PCP on my Golf so many people were saying how it's more expensive next time as if it's a rule.

It is true unless you save save save then? You won't find that advice in car dealerships or on any paperwork. It's down to financial savvy on the part of the consumer which some but many do not have.

Vw does well for equity compared to many other brands, golf especially so.

Its right to say that unless you save for a new deposit in conjunction with your monthly that your monthly will increase if the deposit was high first time. It's an affordability question. Get a quote at 15pc deposit. If its too high month on month beware!!

ELM327 · 17-09-2019 12:00pm

If you're going PCP only for the better interest rates and intend to refinance the GFMV at end of term, will you still be subject to excess KM charge?

sillysocks · 17-09-2019 12:06pm

ELM327 wrote: »

If you're going PCP only for the better interest rates and intend to refinance the GFMV at end of term, will you still be subject to excess KM charge?

As far as I know that only kicks in if you are handing back the car after the 3 years. We refinanced and it wasn’t even asked.

17-09-2019 2:05pm

DaveyDave wrote: »

Even if you are paying interest the cost of credit will be considerably lower than a bank or credit union loan. Apart from the likes of BMW I believe the higher end of PCP rates are around 5.9%? A bank loan is around 15% for 3 years up to 25% for 5 years...................

Skoda for example........
RECOMMENDED RETAIL PRICE
€46,200.00
DEPOSIT PERCENTAGE
30%
DEPOSIT
€13,860.00
AMOUNT FINANCED
€32,340.00
PERIOD (MONTHS)
36 Months
ANNUAL MILEAGE ('000S)
20km
FINAL PAYMENT
€18,480.00
36 MONTHLY PAYMENTS OF
€464.51
APR
3.9%
TOTAL COST OF CREDIT
€3,012.36

A bank loan may end up with you paying 20% + of the amount borrowed back in interest over 5 years but comparing that to APR PCP rates isn't at all accurate.

You won't find a car loan at 25% APR.

TheShow · 17-09-2019 2:11pm

DaveyDave wrote: »

Even if you are paying interest the cost of credit will be considerably lower than a bank or credit union loan. Apart from the likes of BMW I believe the higher end of PCP rates are around 5.9%? A bank loan is around 15% for 3 years up to 25% for 5 years.

What banks are you using that charge 15/25%?
Banks are about 8/9/10 % tops for a car loan.

Daveydave must be taking about loan sharks.

Mickiemcfist · 17-09-2019 2:35pm

TheShow wrote: »

What banks are you using that charge 15/25%?
Banks are about 8/9/10 % tops for a car loan.

Daveydave must be taking about loan sharks.

I think he's talking about the cumulative cost of the loan but is forgetting that the 5.9% PCP interest also compounds.

17-09-2019 2:47pm

Mickiemcfist wrote: »

I think he's talking about the cumulative cost of the loan but is forgetting that the 5.9% PCP interest also compounds.

Indeed, APR is annual percentage rate, the 25% he mentions is quite likely what you describe.

............ what's a tracker mortgage :pac:

awec · 17-09-2019 2:51pm

Augeo wrote: »

Skoda for example........
RECOMMENDED RETAIL PRICE
€46,200.00
DEPOSIT PERCENTAGE
30%
DEPOSIT
€13,860.00
AMOUNT FINANCED
€32,340.00
PERIOD (MONTHS)
36 Months
ANNUAL MILEAGE ('000S)
20km
FINAL PAYMENT
€18,480.00
36 MONTHLY PAYMENTS OF
€464.51
APR
3.9%
TOTAL COST OF CREDIT
€3,012.36

A bank loan may end up with you paying 20% + of the amount borrowed back in interest over 5 years but comparing that to APR PCP rates isn't at all accurate.

You won't find a car loan at 25% APR.

I could be totally wrong here, and I'm sure someone will correct me if I am, but..

The monthly payment for 3 years is 464. But then at the end of the three years, you need to pay 18,480. If you were to save this amount up over the three years, you'd need to save ~513 a month, which means your car would be costing you ~977 (464+513) a month.

To take a standard car loan for the 32,340 instead, at current rates, would cost ~1020 a month. 43 quid a month more, which is about 1500 over three years. However, this option means no mileage limits.

It really is difficult to compare the two options like this, since they are totally different. Traditional finance is geared towards wanting to buy a car, pay for it, and then not have to pay for it any more, whereas PCP is geared towards encouraging people to regularly be changing their car and therefore always be paying for a car.

Lantus · 17-09-2019 3:03pm

Augeo wrote: »

Skoda for example........
RECOMMENDED RETAIL PRICE
€46,200.00
DEPOSIT PERCENTAGE
30%
DEPOSIT
€13,860.00
AMOUNT FINANCED
€32,340.00
PERIOD (MONTHS)
36 Months
ANNUAL MILEAGE ('000S)
20km
FINAL PAYMENT
€18,480.00
36 MONTHLY PAYMENTS OF
€464.51
APR
3.9%
TOTAL COST OF CREDIT
€3,012.36

A bank loan may end up with you paying 20% + of the amount borrowed back in interest over 5 years but comparing that to APR PCP rates isn't at all accurate.

You won't find a car loan at 25% APR.

Total cost of credit is for first 3 years only. The balance if financed also needs interest to be applied. On above example it will be 1300 to 2000 or less over 3 years so still a good deal.

17-09-2019 3:10pm

Lantus wrote: »

Total cost of credit is for first 3 years only. The balance if financed also needs interest to be applied. On above example it will be 1300 to 2000 or less over 3 years so still a good deal.

I know, I was merely giving a PCP example to illustrate that the chap's 25% view on bank loan compared to PCP was fairly not factual.

ShadowHearth · 17-09-2019 3:25pm

awec wrote: »

I could be totally wrong here, and I'm sure someone will correct me if I am, but..

The monthly payment for 3 years is 464. But then at the end of the three years, you need to pay 18,480. If you were to save this amount up over the three years, you'd need to save ~513 a month, which means your car would be costing you ~977 (464+513) a month.

To take a standard car loan for the 32,340 instead, at current rates, would cost ~1020 a month. 43 quid a month more, which is about 1500 over three years. However, this option means no mileage limits.

It really is difficult to compare the two options like this, since they are totally different. Traditional finance is geared towards wanting to buy a car, pay for it, and then not have to pay for it any more, whereas PCP is geared towards encouraging people to regularly be changing their car and therefore always be paying for a car.

If you plan to buy out on PCP then millage can be whatever you want. When you wrote that last check out, they won't run outside to have a look how many miles it has, then come back and say: sorry, you went 6k miles over the limit, it's balloon payment + 2k more.
A lot of people already confirmed that if you decided to trade in for another car in 3 years, dealers don't pay attention to millage.
The only reason they have millage limit, is to fend off fleet buyers, who will take out cheaper PCP cars and rack up astronomical millage, then just dump cars back to dealers.

mickdw · 17-09-2019 8:20pm

ELM327 wrote: »

If you're going PCP only for the better interest rates and intend to refinance the GFMV at end of term, will you still be subject to excess KM charge?

If you are buying out the car, the mileage or condition is of no concern to bank.
If you are trading it in for a new one, extra mileage will effect it's value like with any car being traded in.
If handing back, they will charge for additional mileage.

younggalway · 17-09-2019 11:04pm

Does anyone have experience of getting out of a PCP agreement early? I'm not talking about forfeiting etc. but I know you can just pay the balance owed and walk away.

I purchased a new car in March this year but now I am planning to emigrate in about 12 months, so basically looking to run a banger and save on payments over the next year. I'm not really in any rush to sell but I do think I will get the best price for my car if I sell before 2020. Now I have spoken to someone in the similar position, and VW bank said they could sell privately if the payment was made direct to them by the purchaser.

I'm wondering if anyone has heard of something like this or if anyone know what the best option would be? I know I'm going to lose a fair few pound at this point but if I'm would be happy for the price to just cover the outstanding amount. Do you think a dealer would sell this on my behalf, as I think he likelihood of someone buying a 191 car privately is null. Or maybe if the price was attractive enough I might sell it privately? Any advice appreciated?

bazz26 · 18-09-2019 12:01am

Talk to the dealer you bought it from.

mickdw · 18-09-2019 12:16am

What car is it?

ELM327 · 18-09-2019 10:13am

If your deposit plus the total repayments so far exceed 50% of the initial purchase amount then you could hand back on the half rule.
Otherwise you're going to be taking a huge hit imo handing back a 191 so soon.

TheShow · 18-09-2019 10:17am

most likely pay the settlement which will be high enough, but any cash up front is gone.
So your handing back the car and no money coming back your way.

18-09-2019 8:31pm

Deleted User wrote: »

Ok so after a while of my brother and I trying to figure out the benefits of PCP we can't find any.

He's looking at getting a new Audi and we've been looking into pcp, he changes every 2 years or so and might have 15 k miles maximum on the clock so we thought pcp might suit him better.

You got to come up with a large deposit if you don't have a trade in and while your monthly payments appear low when you add in the fact you need a new deposit for the new pcp after 3 years your 300 a month pcp suddenly turns into 600+ pm.

So what's the benefit over hp or bank loan ?

The only hing with hp or loan is you pay the full interest where as pcp yup don't ?

Either way I see little benefit on a normal loan and trade in and re finance after 3 years or so. Only thing is VW bank has much lower interest than any other bank or finance.

For me doing 20-25 k miles a year pcp would leave me with not much on the gfv.

It seems to me that people could get caught out at the end because you can be damn sure you won't have much over the gfv to use as a deposit.

Funny, I just read this post again lol

Now that I'm on my 2nd PCP, my Brother also, we think it's great, works well for us.

Any questions please ask . It is a great way to finance a car once you know what it's all about.

I can't believe the thread is still active, and I can't believe I started this thread 5.5 years ago, time flies !!! but just wanted to say that I would not hesitate now to recommend PCP.

CoBo55 · 19-09-2019 8:37am

[Deleted User] wrote: »

Funny, I just read this post again lol

Now that I'm on my 2nd PCP, my Brother also, we think it's great, works well for us.

Any questions please ask . It is a great way to finance a car once you know what it's all about.

I can't believe the thread is still active, and I can't believe I started this thread 5.5 years ago, time flies !!! but just wanted to say that I would not hesitate now to recommend PCP.

Not for a leaf though... You lost your bollox on that baby.

19-09-2019 9:30am

CoBo55 wrote: »

Not for a leaf though... You lost your bollox on that baby.

Could have been much worse, the value of the car could have been 7 K, on PCP I couldn't care less because if it was worth 0 then it's not my problem.

Depreciation wasn't to do with PCP this was leaf values at the time, this is what a lot of People don't understand, I mention PCP and alarm bells immediately ring out in People's heads and instantly think , ah ha, see I knew PCP was a con. It isn't. Depreciation is !

Interest at that time was around 11-12% with regular finance or bank loan. PCP was around 8%

I could have paid the 9,500 K to own the leaf, for what , to end up loosing more money ? I put that towards the i3 instead , I got a cracking deal on that, a much nicer car and a hell of a lot more fun to drive, a no brainer, it was a rare bargain to find in Ireland on that car, what it's worth in the end is anyone's guess but it won't be PCP dictating this.

The other thing going against me at the time was bringing a Nissan to a BMW garage, that's never going to work in anyone's favour. They wanted nothing to do with it and immediately sold it to the trade.

I've no doubt I probably would have done better if I had to go to a Nissan dealer and get another Leaf but after driving the i3 that was never going to happen I was just blown away by how good it was to drive.

CoBo55 · 19-09-2019 11:22am

[Deleted User] wrote: »

Could have been much worse, the value of the car could have been 7 K, on PCP I couldn't care less because if it was worth 0 then it's not my problem.

Depreciation wasn't to do with PCP this was leaf values at the time, this is what a lot of People don't understand, I mention PCP and alarm bells immediately ring out in People's heads and instantly think , ah ha, see I knew PCP was a con. It isn't. Depreciation is !

Interest at that time was around 11-12% with regular finance or bank loan. PCP was around 8%

I could have paid the 9,500 K to own the leaf, for what , to end up loosing more money ? I put that towards the i3 instead , I got a cracking deal on that, a much nicer car and a hell of a lot more fun to drive, a no brainer, it was a rare bargain to find in Ireland on that car, what it's worth in the end is anyone's guess but it won't be PCP dictating this.

The other thing going against me at the time was bringing a Nissan to a BMW garage, that's never going to work in anyone's favour. They wanted nothing to do with it and immediately sold it to the trade.

I've no doubt I probably would have done better if I had to go to a Nissan dealer and get another Leaf but after driving the i3 that was never going to happen I was just blown away by how good it was to drive.

PCP and depreciation are intertwined with each other as you found out, something people need to consider if they plan changing again in 3 years. Some cars are a much safer bet than others when it comes to depreciation. And as you found out some dealers are better than others too. As I've said to anyone who's interested, PCP is great as long as you know what you're getting into, never forget the balloon payment!!!

PCP finance.

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