PCP finance.

Ryath

Business Cat wrote: »

Approx €10k.



Ahh, ok, I misinterpreted it.

So if we were to go on to another finance deal, we would hand back the car, and any residual value over the GFV would serve as the deposit (or part there of)?

You should at the very least have enough to cover a new deposit maybe more but it all depends on second hand market in three years. Yours will have low mileage so will be worth more. Do you have a lot of extras with that price I got a price of €28300 for the 1.6TDI Highline golf with metalic and I think should have got better that's only about €1400 of list, seen one figure here of someone getting €2000 of a golf with a rrp of €27500.

Millem

Sorry business cat I misread your post. You will only be doing 10,000km per year. I got a great deal last sept. Don't ask me how I managed it, apparently they had 100 secret cars and I got one of them!

At the end of the 3 years you still owe a certain amount but your car is worth more. You have 3 options:
1) refinance the final payment or pay off in cash and keep the car
2) trade in - your car will be really worth more than final payment so you can start pcp again on a 2019. The €2k is the deposit on new car.
3) hand back car and you are quits.

If you chose option 2 apparently you get an even better deal next time

One thing to note is that you have to go to their garage for services

Shop around vw garages. I found frank keane to be the biggest rip off! I bought my car from msl and saved myself thousands also got my old car valued at both, frank keane was offering me more so msl matched it! (Msl were offering me less for my car orginally).

The vw on the northside (karmann) said they would try and match msl. They didn't know anything about secret cars! I luckily had a print out from msl! I never bothered with them in the end as we live southside so msl was handy

mickdw

You are buying with tiny deposit and paying a relatively large monthly.
If you can afford that monthly, you are pretty much set as you will easily have equity in the car at end of term to cover a similar deposit again so you should be able to role into car after car, reducing your monthly if anything.
You are also getting zero per cent finance. All good.
My only issue with that deal is the amount of money you are paying for a golf but that is your choice.

heldel00

Millem wrote: »

Sorry business cat I misread your post. You will only be doing 10,000km per year. I got a great deal last sept. Don't ask me how I managed it, apparently they had 100 secret cars and I got one of them!

At the end of the 3 years you still owe a certain amount but your car is worth more. You have 3 options:
1) refinance the final payment or pay off in cash and keep the car
2) trade in - your car will be really worth more than final payment so you can start pcp again on a 2019. The €2k is the deposit on new car.
3) hand back car and you are quits.

If you chose option 2 apparently you get an even better deal next time

One thing to note is that you have to go to their garage for services

Shop around vw garages. I found frank keane to be the biggest rip off! I bought my car from msl and saved myself thousands also got my old car valued at both, frank keane was offering me more so msl matched it! (Msl were offering me less for my car orginally).

The vw on the northside (karmann) said they would try and match msl. They didn't know anything about secret cars! I luckily had a print out from msl! I never bothered with them in the end as we live southside so msl was handy

Millem you are my idol! You have saved me a fortune over in the newborn and toddler forum but I don't think I'll be following you in this deal!

Millem

heldel00 wrote: »

Millem you are my idol! You have saved me a fortune over in the newborn and toddler forum but I don't think I'll be following you in this deal!

Hahaha Heldel I didn't get same deal or car as above. My "secret" car had about €6k off sale price more if you include the free entertainment pack that all cars got at the time. Don't ask me how these deals find me! All my friends are telling me they want me to go with them to the garage!! I had previously walked out of frank keane disgusted. The one good thing though was they valued my trade in car more than msl

Business cat are you trading in a car? €400ish is an awful lot to have to pay every month for 3 years. Also I presume a golf would be worth a lot more than €12k after 3 years, so you have more than €2k equity.

green_rim

Has anyone had any difficulty in getting PCP? I'm expecting a call today from the dealership to start my application.

sheff the ref

Didn't have a problem but I am only paying €154 a month and had a clean slate

green_rim wrote: »

Has anyone had any difficulty in getting PCP? I'm expecting a call today from the dealership to start my application.

donkey balls

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

Ogogo

donkey balls wrote: »

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

I will start by saying that I am not an expert in this but I will share my understanding of your questions.

I would think that if the price on the window of a pre-loved car is €27,000 and you were buying the car in a straight deal you should probably expect about €1,500 discount on that price.

Your mileage at 6,000 miles a year is somewhat irrelevant, the mileage would only really matter with PCP if it was above 15,000KMS per year as this would have some impact on the notional value of the car after 3 years. If you did have unusually high mileage the net-net of that would be that you would have higher monthly payments and a lower final payment - but the overall amount paid would I believe be the same.

The way the PCP seems to work is an upfront deposit of between 10% and 30%, a final payment of between 30% and 40% and the remainder covered over 36 monthly payments. Many of the manufacturers offer low or no interest PCP deals on new cars but I am not sure what rates they offer on used cars. It can't hurt to ask.

(I do remember seeing an advert recently where Volkswagen Bank were comparing themselves against BOI and AIB and showing themselves to be cheaper on used car financing - but I dont recall the details and it might all have been spin).

By comparison, if you have €10,000 as a deposit you could get a straight car loan over 5 years for the remaining €17,000 and at PTSB that would cost you about €330 PM. http://www.bonkers.ie/compare-loans/

This would leave you to sell your own car for some value but if you expect it worth circa €1,000 you might be best off to try and get the discount on your new car and find a punter at any value for your old car.

Alternatively, if you got a good PCP deal on the A4, you could always pay your deposit now, make your 36 payments and then re-finance the final payment over 2 further years on a personal loan. I dont think the PCP companies would be re-financing that for you.

sillysocks

donkey balls wrote: »

Hi all I am looking for some help and info regarding the PCP some of the car manufacturers have on offer,And in your opinion what would be the better option for me to take eventually.
The car I would like to get would be
Audi A4 131 reg €27k
€10k cash deposit
I do about 6.000 miles a year if that adds anything to the equation my current car would be lucky to be worth €1 k,It is still going well but with only a few insurance companies willing to insure me due to the cars age I have a gut feeling that this year will be the last to get insurance for it.
After the 3 years I would like to hold on to the car and possibly re finance it for another 2 years does anyone know if companies allow this?
I would prefer to pay over 5 years without having to pay a balloon payment at the end of the loan.
I can get a bank loan over 5 years or less the last loan I had with my bank I managed to pay off 2 years early,Also any ideas on how much I could haggle on the price of the Audi it,s been a long time since I have been in a garage looking at buying a car.:o

Have you checked that you can get PCP on that car? Any of the garages I went to had a limit of about 12/18 months old as to what cars you could get PCP on. It was just normal finance/loans on the older stock.

mickdw

I'd say in this case if you planning on keeping the car after the 3 years you are better just dinar the 17 over 5 years and be done with it.
From what I've seen, the zero interest finance is only available in very limited circumstamces with vw and audi so I don't think you will get better than 5.9 on a 3 year old audi.
I'd run the figures on new cars too. With your 10k deposit, you have alot of options.

donkey balls

Thanks for the reply guys,I haven't actually asked the dealership about the PCP on a 131 reg car,I just saw on their website used car PCP so I assumed that it was for any year.
I will drop in and see what they can offer me regarding used PCP or normal finance packages,And compare them to a bank loan.

donkey balls

Just a quick up date I can get PCP on the used car,But I'm more so steering towards a normal finance package over 5 years.
I managed to get an A4 with 22000km on the clock 131D reg the car was hardly used.

Fiskar

donkey balls wrote: »

Just a quick up date I can get PCP on the used car,But I'm more so steering towards a normal finance package over 5 years.
I managed to get an A4 with 22000km on the clock 131D reg the car was hardly used.

Nice one, what did you trade in against it and was it a main dealer? Looking and deciding on my yoke at the mo.

sheff the ref

donkey balls wrote: »

Just a quick up date I can get PCP on the used car,But I'm more so steering towards a normal finance package over 5 years.
I managed to get an A4 with 22000km on the clock 131D reg the car was hardly used.

Mileage very low for a three year old car

donkey balls

Fiskar wrote: »

Nice one, what did you trade in against it and was it a main dealer? Looking and deciding on my yoke at the mo.

Main dealer selling my car private.

donkey balls

sheff the ref wrote: »

Mileage very low for a three year old car

Yeah it is for a diesel I'm buying from a main dealer where the car was originally purchased,Seemingly it was a lady who owned it and use it as a run about.

millix

This is a very useful thread. This question may have been answered earlier but I can't find it if it has. I can't understand how the quoted APR 3.9% applies here. Am I missing something obvious ?

VW bank is quoting PCP examples for 2016 cars - e.g.

Passat Estate Trendline 1.4TSI 125HP OTRP €30,170.
Deposit / Part Exchange €9,087.18.
36 monthly payments of €309. APR 3.9%.
Optional Final Payment €11,758.
Total cost of credit €1,949.18*. ( includes €150 fees at start and finish )

Is the following correct

* FINANCED AMOUNT= OTRP - DEPOSIT = 30170-9087=21083
* Interest only repayments on FINALPAYMENT over 36 months = X
* Interest + Principal repayments on OTRP-DEPOSIT-FINALPAYMENT over 36 months = Y
* repay X+Y over 36 months, in equal instalments, leaving FINALPAYMENT to be made at the end of the 36 months

in the above case VW calculates X+Y to be 11124 ( = 36*309)

I wanted to make an excel model of this to see the effect of a different deposit but I can't seem to get these numbers using an APR of 3.9%, so maybe my assumptions above * are not correct.

Thanks for any insight - M

mickdw

millix wrote: »

This is a very useful thread. This question may have been answered earlier but I can't find it if it has. I can't understand how the quoted APR 3.9% applies here. Am I missing something obvious ?

VW bank is quoting PCP examples for 2016 cars - e.g.

Passat Estate Trendline 1.4TSI 125HP OTRP €30,170.
Deposit / Part Exchange €9,087.18.
36 monthly payments of €309. APR 3.9%.
Optional Final Payment €11,758.
Total cost of credit €1,949.18*. ( includes €150 fees at start and finish )

Is the following correct

* FINANCED AMOUNT= OTRP - DEPOSIT = 30170-9087=21083
* Interest only repayments on FINALPAYMENT over 36 months = X
* Interest + Principal repayments on OTRP-DEPOSIT-FINALPAYMENT over 36 months = Y
* repay X+Y over 36 months, in equal instalments, leaving FINALPAYMENT to be made at the end of the 36 months

in the above case VW calculates X+Y to be 11124 ( = 36*309)

I wanted to make an excel model of this to see the effect of a different deposit but I can't seem to get these numbers using an APR of 3.9%, so maybe my assumptions above * are not correct.

Thanks for any insight - M

If you apply the interest rate to the overall outstanding reducing monthly borrowing you will get very close to vw figures. Your repayment should then be such that after 36 months, the balloon amount is outstanding.

ajamesr

I think with PCP, one of the main things to consider is how your initial deposit will be eaten into over the 3 years - which all comes down to how realistic the GMV is.
You want a low GMV - a higher GMV (one that will be very close to the actual final value of the car on trade in) is not good. A higher GMV will mean lower monthly repayments, but you will get stung at the end of the 3 years. Because the equity in the car will not be much.

Say the car is 30000 - and the GMV is 14000, this is not good for you. You should expect 50% loss in value over 3 years. So your car may well only fetch 15000 from a trade in. So the future equity in this car is 1000. Thats not good after 3 years, especially if you put the max 30% deposit of 9000 down at the beginning.
You will have LOST 8000 in equity - but your monthly repayments where way cheaper - so were you disciplined enough to safe that difference for your next deposit?

Now lets say they gave a GMV of 10000 - well now this is good for you long term. You will now have 5000 equity in the car at the end of 3 years, so in this case just put 5000 deposit down (about 16%) and you will not lose any equity over the 3 years - but your monthly repayments will be more. But these monthly repayments are a much fairer reflection of what the car is costing you. You are effectively paying for the depreciation over the 3 years.

My point is, for PCP to work for you, you really need to only put in a deposit that is equal to the difference between the GMV and actual expected trade in value of the car after 3 years (usually 50%). If based on this amount of a deposit, you cant afford the monthly repayments, then PCP is probably going to hurt in the long run.

You may even get lucky and the GMV is 10000, and after 3 years you might get offered 17000 for a low milage well looked after car, so now you have not only your initial 5000 back but 2000 on top of it.

The only control you have in the PCP arrangement is the deposit you start with. We are so used to thinking that a large deposit up front is good as it will bring down repayments over the term of the loan - but that only works for 100% loans. PCP works different. Keep your deposit at between 15% & 20%. 30% will reduce your monthlys but you will get stung on the trade in after 3 years. Your 30% deposit will have been eaten into.

So take 50% of the total cost of the car, subtract the GMV they are projecting and that should be the max deposit you put down in order to not lose equity over the 3 years. With any luck, doing it this way should even put a little equity your way towards the next car.

vintagevrs

That all makes sense, and is good idea if the apr is 0%. Not the cheapest way if its not 0%. If the apr is 4% for example, a higher deposit means you are financing less and therefore less interest will be paid making the cost of ownership cheaper. As you say though, if your expected equity is going to be low you need to be wary of where that may leave you in three years time.

Your point around putting in a deposit reflective of future equity is a good one though. As you said, if the monthlies with the low deposit are too high, maybe you should look for a less expensive car.

sheff the ref

The three years time thing is a gamble.

However I have been told on my new 0% PCP that they will refinance the remaining lump sum at the end of the three years if the value of the car wont provide enough equity to start a new deal. This is subject to credit ratings etc. of course but was told that any refinancing would most likely not be at 0%, even though the 0% may still be available on a new car

In any event, my preferred option would be a new car at the same payments.

Drummerboy08

With VW Bank they will refinance the GFV after 3 years at 6.9%.

ajamesr

Does anyone know how it works when a 0% PCP offer comes along but you want to order a car that may take 6 months before delivery?
Usually the 0% offers include the clause that you must order before 31st of Jan (for example) and register before 31st March. But if I order before 31st Jan and car doesn't arrive until June sometime - what % am I tied into?
Does the 0% offer therefore just tie you into whatever is readily available in the country and not your specific custom build that you want from the factory?

sheff the ref

I had to order and they had to register the car by the end of February. That meant that the car had to be taxed for February with arrears even though I only have it 2 weeks tomorrow.

However they had to get special clearance from Seat Ireland for that as there happened to be a car in the country. Otherwise I would not have been eligible for 0% finance as there would have been a 2-3 month wait for a car.

Best to act early if going with 0% finance deals

ajamesr wrote: »

Does anyone know how it works when a 0% PCP offer comes along but you want to order a car that may take 6 months before delivery?
Usually the 0% offers include the clause that you must order before 31st of Jan (for example) and register before 31st March. But if I order before 31st Jan and car doesn't arrive until June sometime - what % am I tied into?
Does the 0% offer therefore just tie you into whatever is readily available in the country and not your specific custom build that you want from the factory?

sheff the ref

If offered a new car at 0% it would probably be a better deal than 6.9% to pay off what I have depending on equity created above GFV

Drummerboy08 wrote: »

With VW Bank they will refinance the GFV after 3 years at 6.9%.

ajamesr

sheff the ref wrote: »

If offered a new car at 0% it would probably be a better deal than 6.9% to pay off what I have depending on equity created above GFV

I think PCP @ 0% is almost an unbelievable offer. Take the 30,000 car example. Pay a 5000 deposit (& at the moment in the UK SKoda are contributing a 1000 to the deposit on top of the 0% offer & a further 500 cash back) And the GV will probably be around 11000 - So you are making payments on 14000 for 3 years at 0% - which is about 390 a month.
Say you squirrel away another 100 a month on average - at the end of 3 years you will owe the GMV of 11000 but if you put the 100 a month away you can pay about 4000 of that straight away leaving you owing about 7000 for a 30000 -within a 3 year period !
Would you give 7000 for a 3 year old car that was worth 30000 new? Absolutely. You could even finance that 7000 the old fashioned way at a bank or credy - @ 6.9% over 3 years - about 200 a month.

Finance that 25000 through a bank at 6.9% over 4 years even - about 600 a month for 4 years.
Even if you finance it over the same 6 years (if you can get it) as I use in the PCP example - its still just over 420 a month EVERY month for 6 years.

Credit cost on the normal finance option - 5400
Credit cost on the 0% PCP option with 3 year normal finance at end - 750

Drummerboy08

sheff the ref wrote: »

If offered a new car at 0% it would probably be a better deal than 6.9% to pay off what I have depending on equity created above GFV

Yes probably but even if your intentions are to keep the car from day one it's still cheaper to pcp it on 0% and then financethe balance at 6.9% than it is to buy on HP.

ajamesr

ON another note with regard to equity in a PCP bought car - it will never be over 20% of the starting value of the car.
Again using the example of a 30000 car. 20% is 6000. You will be doing well to have equity of 6000 after the 3 years, no matter how large the deposit you put down to begin with. In fact the deposit will not impact the equity one bit, the deposit will only affect your monthly repayments. WHY?
Simple maths. Its rate of depreciation V's the GMV

Over 3 years a car is estimated to lose about 50% of its value. This is an average and can be more or less depending on many circumstances - has a new model come out, was the market flooded, did they have recall or reliability issues, were they well reviewed, are they selling well in second hand market etc etc thats before we get to how well you kept it and how much mileage you piped on.

The GMV will usually be set around 38% (which is what you want) to about 43% - (although I have seen higher by some manufactures to keep the monthlies down, but its false economy)

So mathematically the only equity you can have in the car is the % difference between the GMV and rate of depreciation. If your car depreciates by say 45%, well then you have 55% equity left - but the GMV needs to taken from that now. So if your GMV was set at 38%, you now have 17% equity.

If you do well and the car drops in value by only 40% - you have 60% equity left. And say your GMV was at 40% - you now have 20% equity.
You would be doing really well to get above 20% and I reckon you should plan for about 15%.

You will of course know the GMV going in, the only thing you can't really be sure of is the depreciation over 3 years. But you will have a fair idea of that if you do a little research.

kefir32

Are the 0% or circa 3% PCP finance deals usually offered on models that are well into their cycle, for instance I notice the 5 series BMW is on offer, I know thats up for replacement next year or 18 mths but an X5 will usually have a much higher rate being a relatively new model.

mickdw

Well you would imagine if stuff is flying out the door that you won't get good offers but vw are doing 0 percent on very fresh models

ajamesr

Has anyone tried negotiating with VW Bank on an existing PCP contract? Say you are 2 years into a 3 year PCP deal and fancy changing again. Say you got 0% on the original PCP but at the moment the rate is 3.9% on the vehicle you want. I wonder could you negotiate direct with VW Bank to renew your 0% PCP for another 3 years on the vehicle you want to upgrade to?
I would think they would be happy to tie you into another 3 years and in all likelihood they will probably be offering 0% at some stage in the future anyway so why not give it to you early.

sheff the ref

0% is strict enough. Garage dont have the final say on it, it is the Irish headquarters

Wouldnt see them continuing the 0%

Basically what changing after 2 years means is that you have one year of payment left on the car so it is the GFV plus one year that is owed. In some ways it may make more sense to change after 2 years rather than 3. Less mileage, a car worth more to a dealer on the secondhand market and a new car again for yourself

ajamesr wrote: »

Has anyone tried negotiating with VW Bank on an existing PCP contract? Say you are 2 years into a 3 year PCP deal and fancy changing again. Say you got 0% on the original PCP but at the moment the rate is 3.9% on the vehicle you want. I wonder could you negotiate direct with VW Bank to renew your 0% PCP for another 3 years on the vehicle you want to upgrade to?
I would think they would be happy to tie you into another 3 years and in all likelihood they will probably be offering 0% at some stage in the future anyway so why not give it to you early.

Shefwedfan

OK so I never really looked into PCP, my plan was to head to UK and buy a car but it is just not working out for me.

I am looking at people carrier. Got a quote from Peugeot for the 5008 and also from Ford for the SMAX.

The first Ford dealer I talked to said the best way to use PCP is to go in at minimum deposit, see section below. Is this correct? I also asked the Peugeot dealer and they said similar as the money used for the deposit justs decreases the monthly repayment but in 3 years time it is gone so pointless paying up front....

Is this correct? or they spinning a story?


Please note, it is usually recommended that the deposit is made at a lower amount as it affects your equity for the next car – PCP is better when planned in the very long run, for more than a single vehicle.
Because of the intricacy of the process, I’d suggest coming down for a visit where we’d be able to show you both S-Max units in stock, used and new, and go through the PCP options available to you.

ajamesr

Fair play to this sales guy, he is spot on. He is looking long term where it might be easier to sell it at the temptation of lower monthly payments, but long term you will have no equity in the car. My take on it is no more than 20% deposit.
The GMV is usually set around the 40% mark, if the car depreciates by 40% over the three years, you have your 20% still in equity in the car. So your payments have been covering the depreciation but your deposit is still safe for you next car.
You might even have a bit more than that in equity if the car has low KM's and is in good shape etc. Any more of a deposit will only lower your monthlies but not increase your equity in the car at the end of 3 years. Thats just the way PCP works.

ajamesr

I'm thinking of trading my PCP car after 2 years and going again. This time around I want to order a car built to my specs rather than whats available.
My understanding is that I could be waiting 3 or 4 months for the car to arrive. So how does it work in the meantime?
I understand I can agree a sales price for the car I want, but how do we agree trade in price? Is it when I place the order, or is it when the ordered car arrives in 4 months time?
And when is the the new PCP agreement sorted? Because obviously I will make 4 more payments before new car arrives, which will be about €1700.

And just to help me negotiate - the car I have is currently selling at dealers for about €22,500 - if mine will likewise be on sale in the dealers yard for 22,500 in a few weeks, how much should I expect to get from dealer? The car is 3 months shy of 2 years old, still under warranty and needs nothing done to it. Could literally take it from me and put on forecourt.

Lantus

Correct. The ideal deposit will set you up with a monthly payment that will be consistent running into the next 3 year period. The equity which is the extra value of the car which forms your next deposit is going to be the same regardless of your initial deposit to monthly ratio. So giving the dealer a huge deposit up front will artificially reduce the monthly payment but is not sustainable.

E.g. your deposit is 2k and monthly is 300. After 3 years the equity is also 2k. Happy days the next 3 year monthly is 300.

If your deposit was 4k and monthly 150. After 3 years your equity is still 2k and so your monthly will now rise to 300 unless you inject 2k cash to retain the lower level.

The best approach for long term stability is to match the deposit to the predicted equity.

sheff the ref

Injecting 2k in cash after 3 years is not a bad way of upgrading to a new vehicle!!!

Lantus wrote: »

Correct. The ideal deposit will set you up with a monthly payment that will be consistent running into the next 3 year period. The equity which is the extra value of the car which forms your next deposit is going to be the same regardless of your initial deposit to monthly ratio. So giving the dealer a huge deposit up front will artificially reduce the monthly payment but is not sustainable.

E.g. your deposit is 2k and monthly is 300. After 3 years the equity is also 2k. Happy days the next 3 year monthly is 300.

If your deposit was 4k and monthly 150. After 3 years your equity is still 2k and so your monthly will now rise to 300 unless you inject 2k cash to retain the lower level.

The best approach for long term stability is to match the deposit to the predicted equity.

Shefwedfan

ajamesr wrote: »

Fair play to this sales guy, he is spot on. He is looking long term where it might be easier to sell it at the temptation of lower monthly payments, but long term you will have no equity in the car. My take on it is no more than 20% deposit.
The GMV is usually set around the 40% mark, if the car depreciates by 40% over the three years, you have your 20% still in equity in the car. So your payments have been covering the depreciation but your deposit is still safe for you next car.
You might even have a bit more than that in equity if the car has low KM's and is in good shape etc. Any more of a deposit will only lower your monthlies but not increase your equity in the car at the end of 3 years. Thats just the way PCP works.

Thanks for info

I was putting in around 25-30% deposit.

Am I better off then just sticking to 10%?

Shefwedfan

I have the numbers for SMAX.

Min Deposit
Price: €33,750
Deposit: €3,723
Repayment: €563.47
APR 6.5%
GMV: €13,988
Interest: €4,256.65

8k Deposit
Price: €33,750
Deposit: €8,000
Repayment: €432.76
APR 6.5%
GMV: €13,988
Interest: €3,891

The 8k number is just one I picked from top of my head but for the SMAX it is probably around 20%

Shefwedfan

I have this for the 5008

Min Deposit
Price: €32,589
Deposit: €8,000
Repayment: €369.70
APR 2.9%
GMV: €12,872

If going with min repayment the repayment is €507.29

Shefwedfan

OSI wrote: »

Wow, Ford's APR is a bit of a kick in the balls isn't it? So you'd be paying about a tenner extra a month in interest on the lesser deposit. Personally, I prefer to have the extra money in my pocket every month, but I can see why people would prefer to pay a bit more to worry less about coming up with extra deposit the next time around.

No I am with you, extra money is always good. Plus the Peugeot is auto, full leather and with DVD in head rests. The Ford is the base Zetec model.

The only reason I would go with SMAX is a little bit bigger than the 5008 inside but if I just keep for 3 years it is not a big concern....

R.O.R

You are more likely to end up with a larger amount of equity on the S-Max than the 5008, based on those figures.

grogi

Shefwedfan wrote: »

No I am with you, extra money is always good. Plus the Peugeot is auto, full leather and with DVD in head rests. The Ford is the base Zetec model.

The only reason I would go with SMAX is a little bit bigger than the 5008 inside but if I just keep for 3 years it is not a big concern....

Too bad you started looking that late - C4 Grand Picasso (which shares the drivetrain with 5008, but is slightly larger, lighter and gets better mileage) was at 0% PCP. Until the 31st. They come with 5-year-warranty as well.

Maybe give a Citroen dealer a call - you could avail of a already registered model?

Shefwedfan

grogi wrote: »

Too bad you started looking that late - C4 Grand Picasso (which shares the drivetrain with 5008, but is slightly larger, lighter and gets better mileage) was at 0% PCP. Until the 31st. They come with 5-year-warranty as well.

Maybe give a Citroen dealer a call - you could avail of a already registered model?

I test drove the Picasso, hated the inside of them. So much glass.

grogi

Shefwedfan wrote: »

I test drove the Picasso, hated the inside of them. So much glass.

De gustibus non est disputandum

Shefwedfan

R.O.R wrote: »

You are more likely to end up with a larger amount of equity on the S-Max than the 5008, based on those figures.

Ok this is where I get confused a bit. So at the end I have a final pay off price on the 5008 of €12,872.

Is the €12,872 then used as a deposit on the new car? or if I just refresh to a new 5008 what is then used against the new car?

That is the bit I am not sure about

FrontDoor

Shefwedfan wrote: »

Ok this is where I get confused a bit. So at the end I have a final pay off price on the 5008 of €12,872.

Is the €12,872 then used as a deposit on the new car? or if I just refresh to a new 5008 what is then used against the new car?

That is the bit I am not sure about

You still owe 12872 on the car if I'm not mistaken?

The difference between this figure and the trade in value you get for can form the deposit for your next car.

Or am I missing something?

grogi

Shefwedfan wrote: »

Ok this is where I get confused a bit. So at the end I have a final pay off price on the 5008 of €12,872.

Is the €12,872 then used as a deposit on the new car? or if I just refresh to a new 5008 what is then used against the new car?

That is the bit I am not sure about

No. The car will be worth a bit more than that and you'd be offered probably in the area of €17000 - so the difference between that and the GFV is what you can finance the deposit with.

Shefwedfan

OSI wrote: »

No, at the end your car will be given a trade-in value. You can either pay the final payment of €12,872 and keep the car, hand the car back and pay nothing, or if you wish to enter a new agreement, they will take the current car, pay off the final payment and use the difference between it's trade-in value and the final payment as the deposit on the next car.

eg, if at the end of the agreement they decide the car has a value of €20,000, you will have €7,128 as a deposit on the next car.

Ok that makes sense, I asked the person in dealer yesterday and had no idea at end of conversation.

The Ford would of course hold its value better but it is a higher cost and a lower spec.

Things to mull over.....