PCP finance.

bazz26

I'd say it's more to do with what stock dealers can get their hands on before the end of March deadline. There is apparently production delays on petrol models.

mickdw

The figures for that golf appear worse than a highline Passat. What is the price on that car with options?
Are Highline golfs up on 34k now? Nuts really.

bazz26

Terms and conditions say they start at 30k for a 3dr 1.6 TDi before delivery and metallic paint or ticking any options so a 5dr with a few extras for 34k on the road is plausible.

DaveyDave

My Highline was €31,100 @ 0%. I don't know about the time of year effecting discount but I got close to €2k off my car and the 3 year service plan thrown in which I believe is around €500. If yours is €34k I'd push for a little more.

McGrath5

mickdw wrote: »

The figures for that golf appear worse than a highline Passat. What is the price on that car with options?
Are Highline golfs up on 34k now? Nuts really.

I'm going with an auto version and a few more extras, so 34k is easily attainable on these.

mickdw

That explains it.

ctlsleh

anyone any experience with Audi PCP and how negotiable they are etc?

looking at the A3 auto for my missus, i know that they will have a new model next year, so might get a good deal........is there any downside in that approach?

CIP4

ctlsleh wrote: »

anyone any experience with Audi PCP and how negotiable they are etc?

looking at the A3 auto for my missus, i know that they will have a new model next year, so might get a good deal........is there any downside in that approach?

Arent a few of them Audi Dealers doing 1.9% apr finance thats probably as low as you well get interest wise from Audi. Its just down to price. Having Bought an A4 recently of an Audi dealer they were willing to haggle a good bit and I got down the price a couple of thousand but generally they start low with trade in prices etc.

frogstar

Hi, looking to finalise a PCP deal with KIA

They are recommending the extras Gardx/RTI (return to invoice) insurance and Smart insurance (re scratches)

I'm unsure if these are necessities or something they just try to sell. Roughly 1500 for all (500each), that's for the 3 years

Any thoughts on pros / cons, is it a no brainer?

Thanks

vintagevrs

I wouldn't take any of them.

frogstar

vintagevrs wrote: »

I wouldn't take any of them.

Thats what we think too but are we leaving ourselves open to expenses if something happens?

sillysocks

frogstar wrote: »

Hi, looking to finalise a PCP deal with KIA

They are recommending the extras Gardx/RTI (return to invoice) insurance and Smart insurance (re scratches)

I'm unsure if these are necessities or something they just try to sell. Roughly 1500 for all (500each), that's for the 3 years

Any thoughts on pros / cons, is it a no brainer?

Thanks

When we got PCP I asked similar on here-we’ll just for the RTI insurance. I think ours is only about 12 eur a month so not too bad, and the general opinion then was that I should take it. I’m not sure I’d go with scratch insurance etc but for full write off it might be worth it.

mickdw

Return to invoice is possibly worthwhile but anything else wouldn't be for me.

digiman

DaveyDave wrote: »

My Highline was €31,100 @ 0%. I don't know about the time of year effecting discount but I got close to €2k off my car and the 3 year service plan thrown in which I believe is around €500. If yours is €34k I'd push for a little more.

Frank Keane Liffey Valley have a promotion this week where there is €2k off a petrol golf and €4K off the Passat. Tempted as the wife’s car could do with an upgrade.

carsfan2

digiman wrote: »

Frank Keane Liffey Valley have a promotion this week where there is €2k off a petrol golf and €4K off the Passat. Tempted as the wife’s car could do with an upgrade.

Trying to hit first quarter targets probably so might be good time for a deal.

bazz26

I'd imagine they are cars in stock.

CorkFenian

Reading through the thread here have a 2009 focus, (not hugely into cars)

Looking at getting a used 2012\2013 VW Passat just wondering about PCP etc

Is PCP worth it or should I just use credit union, i know its a general query

Should i be looking at 1.6\2.0 petrol\diesel

Thanks

Cyrus

CorkFenian wrote: »

Reading through the thread here have a 2009 focus, (not hugely into cars)

Looking at getting a used 2012\2013 VW Passat just wondering about PCP etc

Is PCP worth it or should I just use credit union, i know its a general query

Should i be looking at 1.6\2.0 petrol\diesel

Thanks

It’s not that common on used cars and even less so on ones more than a year old

bazz26

CorkFenian wrote: »

Reading through the thread here have a 2009 focus, (not hugely into cars)

Looking at getting a used 2012\2013 VW Passat just wondering about PCP etc

Is PCP worth it or should I just use credit union, i know its a general query

Should i be looking at 1.6\2.0 petrol\diesel

Thanks

A 2012/2013 car is too old for PCP. The whole premise around PCP is to get you into a brand new car through a structured payment method and repeat every 3 years.

CorkFenian

Thanks for confirming that from the ads i was thinking the same

Will have to look for the loan,

bazz26

Check out regular hp finance from dealers too, their rates can be more competitive than your own bank or credit union
.

digiman

If you are buying from an independent dealer rather than a main dealer is there a way to get PCP?

Or is my only option to go with a bank loan?

mickdw

A lot of independent dealers can arrange pcp now but any I've seen are charging 6 or 7 percent and to be honest on a pcp that is crazy expensive and the figures generally make no sense.

Becks610

Looking at 1.0 tsi Skoda Octavia 115bhp. Garage said best pcp is when you only put in 10-15% deposit. Dubious about this I am as it’s just a way for them to convince you at the end of the term that you can keep repayments the same and have new car.

Price 23380. Deposit 25% at 5845. Gmfv 8995 monthly payment 265 2.9% apr.

Deal- good, bad or meh.

elbyrneo

Becks610 wrote: »

Looking at 1.0 tsi Skoda Octavia 115bhp. Garage said best pcp is when you only put in 10-15% deposit. Dubious about this I am as it’s just a way for them to convince you at the end of the term that you can keep repayments the same and have new car.

Price 23380. Deposit 25% at 5845. Gmfv 8995 monthly payment 265 2.9% apr.

Deal- good, bad or meh.

Put the most you can into the deposit. Interest will be less and it's the only thing you can control other than bargaining down the overall price.

Dealer likely assumes 3year trade in value will give less equity over GFMV than the 5845 deposit you are suggesting now, so monthlys would go up and you might then go elsewhere. But if you know and expect that, save a little extra to top up the deposit in 3 years time to bring down the monthlys. Better to save and put aside now and avoid interest you need to pay.

If it's a good deal depends simply on APR and your expectation of equity over the GFMV.

Lantus

Becks610 wrote:

Price 23380. Deposit 25% at 5845. Gmfv 8995 monthly payment 265 2.9% apr.

The lower deposit tends to be the most sustainable solution long term, especially if you intend to roll into another deal. If you can afford the higher monthlys then you are financially stable at that level.

That is because the equity is likely only going to be 10 to 15% and currently they are under severe pressure for some brands. So the 2nd deal will be as if you put in a 10% deposit irrespective. This can come as a shock to those who failed to understand.

It's eyes open all the way.....

Yes you can save the difference if you make the higher deposit and yes the interest will be slightly lower with a higher deposit. Get a quote to see by how much do you can compare.

If your going to buy the car and your trade in is 6k as above then a higher deposit can be more beneficial. Again saving extra over the 3 years is beneficial to address the gmfv and limit any loan interest for the 9k you are due to pay on the outstanding.

If you can't easily save another 100 to 200 in addition to the 265 monthly quoted above then it's a very tight deal financially. Question affordability.

If you can you can pay off 7k after the 3 years and nearly buy the car.

Equity is the big issue after 3 years. It's dealer controlled and not very transparent from a consumer perspective. Especially where car values and deposits shift and change, dealer can control the narrative. Expect to have to invest more to get the same though.

conzy

Just a quick update that may help some people in future. I bought a new Ibiza Cupra in July 2016 on 0% finance PCP. It was a really affordable option and definitely the most power / spec / comfort possible for €24k I really enjoyed the car and the repayments were about the same as my fuel bill when I had an RX8... 
I left to go travelling in January and had to sell the car privately. 
The process of ending the PCP deal is extremely simple. Rather than having to deal in a substantial amount of cash. The buyer can pay VW Bank directly. They do not care once they receive the money. You can put the car reg or the agreement number as the reference. The difference is refunded to your bank account. e.g if you owe 14 and you sell for 16 then VW Bank will refund you 2.
After about a week a letter arrives saying the car is clear of finance and that should be it. I was surprised at how painless it was to sell a car that is on PCP privately. Hope that helps somebody

ShadowHearth

conzy wrote: »

Just a quick update that may help some people in future. I bought a new Ibiza Cupra in July 2016 on 0% finance PCP. It was a really affordable option and definitely the most power / spec / comfort possible for €24k I really enjoyed the car and the repayments were about the same as my fuel bill when I had an RX8... 
I left to go travelling in January and had to sell the car privately. 
The process of ending the PCP deal is extremely simple. Rather than having to deal in a substantial amount of cash. The buyer can pay VW Bank directly. They do not care once they receive the money. You can put the car reg or the agreement number as the reference. The difference is refunded to your bank account. e.g if you owe 14 and you sell for 16 then VW Bank will refund you 2.
After about a week a letter arrives saying the car is clear of finance and that should be it. I was surprised at how painless it was to sell a car that is on PCP privately. Hope that helps somebody

That was the reason I went with Ibiza Cupra too. Fantastic package for the price.

Thank you for that informative post. Hopefully it will bust one of the myths going around that you cant sell pcp car before fully paying it off. Buying with bank loan at 9% apr and owning a car so you can sell it whenever is a very week argument.

sillysocks

Do the finance companies who have given the PCP usually offer the option of refinancing the gmfv amount at the end of the agreement if you want to keep the car but don’t have the lump sum?

raxy

sillysocks wrote: »

Do the finance companies who have given the PCP usually offer the option of refinancing the gmfv amount at the end of the agreement if you want to keep the car but don’t have the lump sum?

Yes. Once the pcp is up you can either return the keys, trade in for a new car, pay the gfmv or re-finance the gfmv payment.
It will more than likely be a higher interest rate though so probably better to get a loan elsewhere to pay it off.
I've a few months left on mine & plan on using savings & top up with a bank loan to pay it off.

r0qi4162fux9kg

Mentioned ages back that I planned on refinancing and keeping the car.

The process was very handy. Albeit one f**k up.
They gave me three options 1, 2 or 3 years - all at different rates.
Needed to drop into them with ID, a recent bill and sign the agreement.
That was it. Until a few weeks later, they took the balloon payment. Took a week to sort out.

Audi did mention that VW bank only look for more bank statements if you’re earning less than you stated before or if the payments are higher.

At the end of the day, it was nice experiencing buying a brand new car spec’d to my liking. The Audi options lists are like a book!.. a very expensive book...
But ultimately it’s an utter waste of money compared to what you can get in from the uk, some not even a year old.

Some PCP deals out there seem very good and can be a quick, hassle free way of getting a car.
Id suggest at least looking at what’s available second hand if looking at anything remotely on the expensive side.

SeanSouth

I cant believe it that almost everyone here has missed the point about buying a car. The main point about buying a car is the car itself and the DEPRECIATION
of that car. The depreciation or cost to you on a standard VW Passat is around 450 per month, regardless of whether your monthly payment is 200 or 550 or whether you buy the car with cash or PCP or with a loan from a bank. If you can afford to justify spending 450 per month on a depreciating motor car then go ahead, otherwise dont, everything else is just noise. If you do high mileage, your depreciation figure will be much higher.

Also i have failed to understand people who need to have a new car every three years. A huge waste of money for a bit of feel good factor. Most new cars are good for 7/8 years. Everything else seems to be an exercise in keeping up with the Jones's.

Personally, I do about 25 000 miles per year. I usually buy a good 3 year old executive car in the UK with low mileage and keep it for 2 to three. years. The depreciation usuallly works out at less than a Nissan Micra. My wife has an 11 year old car which she loves.

Ive found dealers in Ireland (in general) to be a sorry bunch. Used car prices are completely overpriced and the choice of stock is never up to scratch.

They think everyone is dumb apparently.

elbyrneo

SeanSouth wrote: »

I cant believe it that almost everyone here has missed the point about buying a car. The main point about buying a car is the car itself and the DEPRECIATION
of that car. The depreciation or cost to you on a standard VW Passat is around 450 per month, regardless of whether your monthly payment is 200 or 550 or whether you buy the car with cash or PCP or with a loan from a bank. If you can afford to justify spending 450 per month on a depreciating motor car then go ahead, otherwise dont, everything else is just noise. If you do high mileage, your depreciation figure will be much higher.

Also i have failed to understand people who need to have a new car every three years. A huge waste of money for a bit of feel good factor. Most new cars are good for 7/8 years. Everything else seems to be an exercise in keeping up with the Jones's.

Personally, I do about 25 000 miles per year. I usually buy a good 3 year old executive car in the UK with low mileage and keep it for 2 to three. years. The depreciation usuallly works out at less than a Nissan Micra. My wife has an 11 year old car which she loves.

Ive found dealers in Ireland (in general) to be a sorry bunch. Used car prices are completely overpriced and the choice of stock is never up to scratch.

They think everyone is dumb apparently.

You seem to have a bee in your bonnet about people buying new cars. I think everyone understands depreciation here. Depreciation applies to cars regardless of cash, loan, HP or PCP. Not sure why you felt the need to post here.

3 year trade in for a new car is an option with PCP. You don't have to replace. PCP actually affords some protection against dramatic depreciation, should the value of the car fall below the GFMV (the only scenario where it makes sense to walk away financially).

As to why people buy new cars, whether on PCP or not. Well maybe they just like a new car (like maybe you like branded clothes or an expensive whiskey or a foreign holiday). Maybe they can afford it regardless. Maybe they have had bad experiences with used cars, and having new cars always within a manufacturers warranty (with potentially lower insurance and tax and better fuel economy) gives a peace of mind that is worth it. Maybe they have a set monthly amount and are happy to budget for that.

So PCP is great for some, once researched and budgeted and understood properly.

mickdw

SeanSouth wrote: »

I cant believe it that almost everyone here has missed the point about buying a car. The main point about buying a car is the car itself and the DEPRECIATION
of that car. The depreciation or cost to you on a standard VW Passat is around 450 per month, regardless of whether your monthly payment is 200 or 550 or whether you buy the car with cash or PCP or with a loan from a bank. If you can afford to justify spending 450 per month on a depreciating motor car then go ahead, otherwise dont, everything else is just noise. If you do high mileage, your depreciation figure will be much higher.

Also i have failed to understand people who need to have a new car every three years. A huge waste of money for a bit of feel good factor. Most new cars are good for 7/8 years. Everything else seems to be an exercise in keeping up with the Jones's.

Personally, I do about 25 000 miles per year. I usually buy a good 3 year old executive car in the UK with low mileage and keep it for 2 to three. years. The depreciation usuallly works out at less than a Nissan Micra. My wife has an 11 year old car which she loves.

Ive found dealers in Ireland (in general) to be a sorry bunch. Used car prices are completely overpriced and the choice of stock is never up to scratch.

They think everyone is dumb apparently.

Yes a new passat would cost 450 per month or circa 5k per year for the first 3 years on average.
I think for what it is, it's reasonable value.
Now if we take a 3 year old passat run from age 3 to 6 years. That will likely lose 2.5k per year in depreciation. So 2.5k per year more expensive to have the new car in terms of depreciation.
The new car will need little bar basic servicing and tyres.
The used car will likely need major servicing and some form of repair whether it's flywheel or dpf etc. Say 500 per year costs over and above basic servicing on the new car so now the new car is only 2k more expensive than the used one per year.
Now ad in zero per cent interest on the new one versus about 650 interest yearly on a 16k used passat over 3 years.... Most people will be borrowing whether new or used.... The new car is now only 1350 more expensive than the used one yearly.
Add in the additional peace of mind of manufacturer warranty for the entire ownership of the new car and that 1350 per year starts to look like it's very reasonable.
I don't have a passat or a pcp but as long as your can afford the new car, it's not the financial lunacy some people say. It's never cheap but having some form of car is a necessity and running a new sensible car like a passat can be quite reasonable.

bazz26

SeanSouth wrote: »

I cant believe it that almost everyone here has missed the point about buying a car. The main point about buying a car is the car itself and the DEPRECIATION
of that car. The depreciation or cost to you on a standard VW Passat is around 450 per month, regardless of whether your monthly payment is 200 or 550 or whether you buy the car with cash or PCP or with a loan from a bank. If you can afford to justify spending 450 per month on a depreciating motor car then go ahead, otherwise dont, everything else is just noise. If you do high mileage, your depreciation figure will be much higher.

Also i have failed to understand people who need to have a new car every three years. A huge waste of money for a bit of feel good factor. Most new cars are good for 7/8 years. Everything else seems to be an exercise in keeping up with the Jones's.

Personally, I do about 25 000 miles per year. I usually buy a good 3 year old executive car in the UK with low mileage and keep it for 2 to three. years. The depreciation usuallly works out at less than a Nissan Micra. My wife has an 11 year old car which she loves.

Ive found dealers in Ireland (in general) to be a sorry bunch. Used car prices are completely overpriced and the choice of stock is never up to scratch.

They think everyone is dumb apparently.

People spend their money how they like, nobody is forcing you to do the same if you don't want to but then again begrudgery is a very common Irish qaulity too. And you know those two cars you and your wife drive now, somebody had to buy them when they were new too so that you can come on here to boast about how you saved money buying them second hand.

bidiots

SeanSouth wrote: »

I cant believe it that almost everyone here has missed the point about buying a car. The main point about buying a car is the car itself and the DEPRECIATION
of that car.

SeanSouth wrote: »

They think everyone is dumb apparently.

You too, going by your post.

Where do you think your 3 year old car comes from ffs?

Toyotafanboi

Had a look at trading in the Golf the other week. 162 1.6 diesel, 85k kms so has shattered the PCP mileage allowance.

Roughly speaking went in with max deposit in 162, €9k ish and have been paying €250pm since then, so again roughly speaking we are 50% of the way to owning the car having paid €14250 off the car.

Trade in value allowed was €18750, so €4500 equity which is quite good at this point IMO. To get the exact same car again continuing with PCP using just the equity as deposit was around €460 per month but the price of a comparable Golf has gone up by the guts of €3k.

DaveyDave

I have a 172 Golf. Nothing to do with keeping up with the Joneses. I've spent the last 5 years cycling to work, the last 3 which were 45km per day. I'm 26, it's nice to have a car. I get to drop the girlfriend home in the evenings, no longer have to cycle home with a large bag full of heavy shopping, can go for a drive outside Dublin with herself.

I don't understand the ignorance that comes with "I don't understand why people need a new car, it's stupid, it depreciates. I don't do it and everyone is wrong" Everything depreciates. It just so happens cars cost tens of thousands so it's a little more obvious. My new €450 phone will probably be worth about €150 in 3 years if I'm lucky. About 30%. Similar to PCP. Go figure.

Some stuff holds its value, bicycles, DJ equipment etc. Other stuff doesn't. An Xbox or PlayStation wouldn't get much after a few years.

If people didn't buy new cars you wouldn't have a second hand one to get into. It's also nice that I don't have to get a loan and be stuck with a car for 5 years at €500 a month when I can pay €300 for 3 years and easily get a new one.

mickdw

Toyotafanboi wrote: »

Had a look at trading in the Golf the other week. 162 1.6 diesel, 85k kms so has shattered the PCP mileage allowance.

Roughly speaking went in with max deposit in 162, €9k ish and have been paying €250pm since then, so again roughly speaking we are 50% of the way to owning the car having paid €14250 off the car.

Trade in value allowed was €18750, so €4500 equity which is quite good at this point IMO. To get the exact same car again continuing with PCP using just the equity as deposit was around €460 per month but the price of a comparable Golf has gone up by the guts of €3k.

You will surely only gain by keeping to end of term (unless you think the mileage is going to be too much.
Are there not contributions from vw to at least cancel out the price increase?
A golf should cost about 400 per month in depreciation for the first 3 years so Id not be inclined to pay 460 for one.

893bet

Can I buy a car on PCP and then sell (well "sign" as no money will change hands) it straight to my wife? Obviously I will responsible for the debt still.

Atlantic Dawn

893bet wrote: »

Can I buy a car on PCP and then sell (well "sign" as no money will change hands) it straight to my wife? Obviously I will responsible for the debt still.

No, ownership remains with the credit provider.

XsApollo

Well you can sign for the debt and have your wife’s name on the logbook if that’s what you mean.
Your still responsible for the debt not your wife.

All in all

893bet wrote: »

Can I buy a car on PCP and then sell (well "sign" as no money will change hands) it straight to my wife? Obviously I will responsible for the debt still.

Can be done, but will add an extra owner to car though.

Cyrus

can i ask why you would bother?

Toyotafanboi

If she's going to be the main driver, doesn't she have to be the registered owner for insurance purposes?

Cyrus

Toyotafanboi wrote: »

If she's going to be the main driver, doesn't she have to be the registered owner for insurance purposes?

no, not in my experience we share a car and change main driver each year to preserve the NCB and theres never an issue over who the registered owner is

SteelyDanJalapeno

Just to share my latest experience, my gf got a 161 Clio on PCP 2 years ago for about 16k I think.
We both travel in the same direction for work so there's really no need for 2 cars, so we talked with Renault on returning it as its hardly ever used (15000km in over 2 years), outstanding finance is about 9600.
Renault inspected it and offered 8k to take it back early, effectively she would have needed to pay about 1600 to hand it back, their reasoning which is sound imo was that they have ample stock of this model right now and they don't need it, however he did say they would be selling it for about 13500.

We've opted against returning, gonna pay off the finance myself and sell it privately.

Toyotafanboi

I'd say they were low balling you there. They aren't seeing near a mark up of 5.5k on any other 161 Clio they have on site.

SteelyDanJalapeno

Toyotafanboi wrote: »

I'd say they were low balling you there. They aren't seeing near a mark up of 5.5k on any other 161 Clio they have on site.

Yeah definitely just didnt wanna take it, but they do have Clios up at that price, an less but more mileage, same model :

http://www.kearys.ie/group/pre-owned/renault/clio/2016-black-dyn-nav---stunning-7450992.html

Toyotafanboi

I wouldn't be doubting the retail price, but you can be sure that they were bought in for much more than €8k.