PCP finance.

hooch-85

The Mk7 Golf has been out nearly 7 years now, it did have a facelift to the 7.5 model but the Mk8 is a ground up new car.

bazz26

Lantus wrote: »

Car models change nearly every 3 years or so. This loss of equity quoted by so many doesn't seem borne out in reality? Unless there is data to support?

Nearly every 3 years? The average life cycle of most car models is usually about 5 years these days and the current Mk7 Golf has been on sale since the beginning of 2013. Of course a model change effects the amount of equity you have in it as its used market value becomes impacted by the new model. Personally I don't think it's a good idea to be buying a run out model on PCP if you plan to roll over again in 2 or 3 years time unless you get it at a very good knock down price now. If you plan to hold onto the car for many years or forever then equity down the road is not as much of a concern.

Toyotafanboi

Yeah, although I was aware a new model was on the way and is probably the reason they were throwing, R-Line, tech pack, leather etc at the car for seemingly little cost, I didn't really consider the implications a newer model would have on any potential repeat equity, especially now the GMFV is higher.

I completely agree vintage, it's still a fresh car for not much money to keep the existing car and that was my initial thought process and intention to just refinance at the end, hadn't really any intention of changing. At the same time I've no reason not to change and a change would be nice, which I suppose is how PCP suckers you.

Have a bit to think about it seems

CoBo55

Toyotafanboi wrote: »

Yeah, although I was aware a new model was on the way and is probably the reason they were throwing, R-Line, tech pack, leather etc at the car for seemingly little cost, I didn't really consider the implications a newer model would have on any potential repeat equity, especially now the GMFV is higher.

I completely agree vintage, it's still a fresh car for not much money to keep the existing car and that was my initial thought process and intention to just refinance at the end, hadn't really any intention of changing. At the same time I've no reason not to change and a change would be nice, which I suppose is how PCP suckers you.

Have a bit to think about it seems

I think thats a great deal, if you could throw them a few grand it would lower the payments a bit, as it stands I'd go for it as your 162 will be pushing up to or be past 200,000km in 3 years time with all the potential money problems looming.

CIP4

If the pictures are anything to go by the MK8 Golf looks wise is not great to say the least. So if that’s the case a late high spec Mk7.5 might hold up well value wise even in 3 years time. That crossed my mind when buying my Golf should I wait for Mk8 and I just thought I like the mk7.5 so why wait although to be fair the car I bought wasn’t brand new.

Also at the mileage your doing in a years time you will be hitting the territory where you are going beyond just routine servicing and maintenance costs will start to rise.

But at the same time I have never had PCP so not that up on it and since I have never actually kept a car anything close to 3 years don’t think it would work great for me.

Wildly Boaring

CoBo55 wrote: »

Toyotafanboi wrote: »

Yeah, although I was aware a new model was on the way and is probably the reason they were throwing, R-Line, tech pack, leather etc at the car for seemingly little cost, I didn't really consider the implications a newer model would have on any potential repeat equity, especially now the GMFV is higher.

I completely agree vintage, it's still a fresh car for not much money to keep the existing car and that was my initial thought process and intention to just refinance at the end, hadn't really any intention of changing. At the same time I've no reason not to change and a change would be nice, which I suppose is how PCP suckers you.

Have a bit to think about it seems

I think thats a great deal, if you could throw them a few grand it would lower the payments a bit, as it stands I'd go for it as your 162 will be pushing up to or be past 200,000km in 3 years time with all the potential money problems looming.

No point throwing in money to lower repayments, he's getting 0% interest pcp

GavMan

I don't really see the concern over residuals. It's a well spec'd R-Line. There is always going to be a reasonably buoyant market for that 2nd hand

CoBo55

Toyotafanboi wrote: »

Yeah, although I was aware a new model was on the way and is probably the reason they were throwing, R-Line, tech pack, leather etc at the car for seemingly little cost, I didn't really consider the implications a newer model would have on any potential repeat equity, especially now the GMFV is higher.

I completely agree vintage, it's still a fresh car for not much money to keep the existing car and that was my initial thought process and intention to just refinance at the end, hadn't really any intention of changing. At the same time I've no reason not to change and a change would be nice, which I suppose is how PCP suckers you.

Have a bit to think about it seems

Does the R line have led headlights or are the led's extra?

DaveyDave

GavMan wrote: »

I don't really see the concern over residuals. It's a well spec'd R-Line. There is always going to be a reasonably buoyant market for that 2nd hand

There's always value in a Golf. Equity might not be as good but I doubt it would take a huge hit. I don't think a new model will change the fact that the MK7.5 is still a nice, well specced car. The only difference is the dealer might give you a crap offer for it. I don't see them listing them for much less. Average Joe doesn't care about the MK8 if they're in the market for a second car Golf.

shanec1928

CoBo55 wrote: »

Does the R line have led headlights or are the led's extra?

extra unless they have stuck them on for the run off models

GavMan

DaveyDave wrote: »

There's always value in a Golf. Equity might not be as good but I doubt it would take a huge hit. I don't think a new model will change the fact that the MK7.5 is still a nice, well specced car. The only difference is the dealer might give you a crap offer for it. I don't see them listing them for much less. Average Joe doesn't care about the MK8 if they're in the market for a second car Golf.

I really don't see a dealer dinging you in any meaningful way if T/boi takes the deal and in 2022 is coming back for more.

The whole point of PCP is getting dealers to shift more new cars. If it's a bad deal for the customer and he walks, its bad for the dealer. Making an advantageous deal keeps all parties happy. Customer gets a new car. Dealer moves a new unit and gets to make a few bob on 2nd hand motor thats easy to shift.

Toyotafanboi

**** it, done it, happy with the deal.

Compromises are the outgoing car has 18's that came with the tech pack at the time and the new car has 17's and the outgoing car also has a pan roof that isn't being replaced. It was "thrown in" at the time as they couldnt get a white car without it.

Deciding factors were the mileage one the 162 being high versus its age, it's also our "good" car and the missus daily for work where she could cover 200+ kms a day at times so it's nice to know she's in something reliable, covered by manufacturers warranty and roadside assist.

That and obviously theres a jump in payments, we can handle the jump no problem but sure if there's ever a time when you couldnt find €390 a month, you wouldn't be finding €305 for the refinancing anyway so in for a penny, in for a pound, that's it.

Looking forward to it. The R-Line facelift looks the job, leather will be ideal with the dog and who doesn't like a new car.

colm_mcm

Well wear,
Will you be peeling the massive stickers off the rear window though?

ShadowHearth

Gratz m8. Happy driving. As I always say: if you can afford it, then more power to you.

Toyotafanboi

It's being supplied by a dealer that doesn't do gargantuan window stickers

DaveyDave

I was behind a Golf that had a vertical rectangle sticker in the middle of the back window. Don't know how anyone could life with that!

Congrats on the new motor

CoBo55

Nice one, best of luck with her. What colour did you go for? Much waiting time?

Toyotafanboi

Thanks, some nice colours available, but went non metallic white, again. Think it looks well on the car and it never looks too dirty when the car is doing big miles. Hope to be in it Monday week as it's in stock but not confirmed yet.

GavMan

Congrats. Please do post some pics when you get the chance after collecting

hooch-85

I think you've done well considering the mileage your doing. Regarding payments I'm paying similar on HP for a GTD that was 3 years old when I bought it.

So you've proven that the mileage restrictions on PCP aren't as prohibitive as every one says. That's good to know as we have a 181 Ibiza as well and it looks like we will be about 30k over the mileage limit when it's due back, we were planning on refinancing the baloon over 2 tears (it's only 7.5k) but we may consider trading up to the Leon

CIP4

Congrats on the car TFB. As you said have a new car with zero miles and the reliability that goes with it is surely worth the bit extra repayment wise.

Does it come with the digital instrument display not sure if all spec new golfs have it at this point ?

While it’s good to think about the what if on circumstance changes I think at the same time you have to balance it and think up to now you have always been able to afford it and to your best knowledge going forward you can still afford it so why not go for it as if people took the other what if view on it no one would ever buy anything. When you work hard it’s nice to have the odd luxury in life.

CoBo55

Nice to see someone buying a car without the ev brigade telling him to buy a leaf!!

easyvision

CoBo55 wrote: »

Nice to see someone buying a car without the ev brigade telling him to buy a leaf!!

DEFINITION OF LEFTY, save the world BOARDS PEOPLE HAHAH

Moon and back, sure a leaf will do! LOL

They fail to see why some people just want a regular car or maybe just dont want a nissan

Zurbaran

Any thoughts on the following pcp for a corolla Luna sport 2.0l hybrid delivery and metallic paint included. Bit concerned looking at the final payment. Deposit and monthly are ok as the current car Loan will end around the time the 37 months will but from what I see from other manufactures that final payment is high.

Deposit is €12,326 (36%) monthly €261.53 (37months) and a balloon of €14,593 3.90% apr.

ofcork

Over 35k in total seems expensive

Zurbaran

ofcork wrote: »

Over 35k in total seems expensive

I agree. I am getting a little added to my trade in to make up the deposit as it’s a little bit more than it’s worth but I don’t think it would be unreasonable to try get a few more quid off.

Is it out of the question to ask for something off the final payment or is that set in stone so you would need get any discount back in cash?

ofcork

Don't think you can get money off final payment so try get it up front.

DaveyDave

Zurbaran wrote: »

I agree. I am getting a little added to my trade in to make up the deposit as it’s a little bit more than it’s worth but I don’t think it would be unreasonable to try get a few more quid off.

Is it out of the question to ask for something off the final payment or is that set in stone so you would need get any discount back in cash?

Final payment is set in stone. With the final payment being quite high it will leave you with less equity if trading in after the 3 years.

GustavoFring

Around 40% GFV sounds about right and is in line with most makes.

Wildly Boaring

What's the list price?
A 35k Corolla seems very expensive.

Zurbaran

Wildly Boaring wrote: »

What's the list price?
A 35k Corolla seems very expensive.

List is 34,240. That includes 1,000 for delivery and 950 for paint. The overall is close to 37.. when the apr is added in.

I’ve had a go of matching spec on competitors and it doesn’t look too bad then. They just seem to add the extras onto the 36/37 monthly’s whilst keeping the final payment a few grand cheaper.

ml100

37k for a Corolla 😮

Zurbaran

ml100 wrote: »

37k for a Corolla ��

It’s mad alright but that’s what 3.9 apr does but the hope would be you could get into a new same priced car for the same monthly’s. Considering I’ve a car loan on the one I’m trading in close to what the monthly 261 is and it ends around the same time. You would need them or someone else to offer just under 7k over the final payment to pay similar again on a new one in 3 years. This is why I’m concerned about the final payment amount.

bazz26

37k is nuts for a Corolla, you can get a Camry from about 40k.

mickdw

Completely nuts. Don't do it.
The corolla has improved but not 37k improved.

teednab-el

Lads can you do a deal with vw bank after the 3 years is up to pay remainder of car without buying a new car and entering pcb again. Im on pcb at the moment.

bazz26

You just pay your balloon (GFMV) figure off and the car is yours.

jimmycrackcorm

bazz26 wrote: »

You just pay your balloon (GFMV) figure off and the car is yours.

Yes, but the car salesman will tilt your head and day... Look at this shiny new car instead.

bazz26

You don't have to involve the car salesman or go near the dealer. Your PCP agreement is with a bank or finance company, they normally inform you towards the end of the PCP term telling you when the balloon payment is due for payment. You can ring them up and make the settlement payment.

Zurbaran

bazz26 wrote: »

37k is nuts for a Corolla, you can get a Camry from about 40k.

That’s the whole amount you would pay including the 3.9% finance. So a Camry is around 40k before delivery and metallic but is also 3.9% apr so the total amount would be a few grand higher.

bazz26

Yes but you get more car for your money.

Zurbaran

mickdw wrote: »

Completely nuts. Don't do it.
The corolla has improved but not 37k improved.

Any car with anything other than 0% finance is going to be more expensive. The most important thing is what I would get on the trade in, how much the monthly’s are, the final payment and the guess work which is how much you will be offered over that final payment.

It’s the last bit I’m thinking on as there is no sure thing with that. My best guess is that there will be a bit more value in a 3 year old hybrid toyota that competes performance wise and is better on fuel over competing companies 2.0ds or 1.5/1.4 petrols.

Zurbaran

bazz26 wrote: »

Yes but you get more car for your money.

It would be much closer to what I have now so would love one but can’t stretch that far. Not to mention this is a car for my girlfriend as well so needs to be suitable for a new driver.

Abba987

Don't do it. It doesn't add up. So much money and NOTHING at the end to show for it.

Finance. Second hand but not too old. Something to show for your cash at the end. What if at the end you are not in a position to start again ? All that gone

bazz26

Fair enough.

Lantus

Zurbaran wrote: »

Any thoughts on the following pcp for a corolla Luna sport 2.0l hybrid delivery and metallic paint included. Bit concerned looking at the final payment. Deposit and monthly are ok as the current car Loan will end around the time the 37 months will but from what I see from other manufactures that final payment is high.

Deposit is €12,326 (36%) monthly €261.53 (37months) and a balloon of €14,593 3.90% apr.

12k is a massive deposit around 30% which is the best scenario for buying a car outright. 260 is a very low monthly and you should budget 100 to 200 ideally extra a month to save to help pay off gmfv. 250 extra each month would give you 9k ready with just 3k to pay off.

If the thought of paying anything over 260 is abhorrent then query if you can really afford this car. Your next pcp when you trade in will be at around 12% deposit with a much higher monthly........ If you are planning to keep long term then fine.

Ask the dealer on the monthly based on a fair equity {deposit} of 4.5k and what the monthly will be.

Wildly Boaring

I think we're more shocked at the list price.

A focus is about 25k for a petrol and 27k for a diesel. From when I looked last year.

Appreciate you may not want a diesel but 10k pay for a lot of petrol.

Lots of other options under 30k in same class. Leon, ceed, i30......

ofcork

How are you trading your current car if there is a loan on it?

Casati

Wildly Boaring wrote: »

I think we're more shocked at the list price.

A focus is about 25k for a petrol and 27k for a diesel. From when I looked last year.

Appreciate you may not want a diesel but 10k pay for a lot of petrol.

Lots of other options under 30k in same class. Leon, ceed, i30......

The Corolla has 180bhp, what can you get under 30k with that kind of power? Maybe a Civic 1.5 might come close but I’d imagine similar money

DaveyDave

Casati wrote: »

The Corolla has 180bhp, what can you get under 30k with that kind of power? Maybe a Civic 1.5 might come close but I’d imagine similar money

The Corolla Luna Sport is €33k. The 180hp Civic top spec auto is €33k. I think the 150hp Golf Highline DSG is similar money. All are very similar performance. Golf would have better finance options, the others are both 3.9%. Corolla lower running costs. A well specced 150hp DSG Leon FR would cost €32k with the same performance. Although performance isn't everything.

I'd personally go for the Civic over the Corolla.