PCP finance.

Heard a pcp type add in the UK over the weekend.....toyota hilux 200/mnth for 4 years.... 10k deposit and 12k balloon payment iirc. 0% Apr.

CoBo55

Augeo wrote: »

Heard a pcp type add in the UK over the weekend.....toyota hilux 200/mnth for 4 years.... 10k deposit and 12k balloon payment iirc. 0% Apr.

Very strict tiny mileage restrictions on a lot of those deals.

younggalway

bazz26 wrote: »

Weren't you trying to sell the Leon due to travelling aboard in another thread recently? Either way it's going to cost you plenty.

Yeah I'm still trying to sell it. Planning to move next year anyway, was just more curious than anything. To be honest, the inside of the Golf is so similar to my own car I don't think it would be worth the extra even if I was staying.
At this rate I still haven't had a single call on mine so I'd say I'll be holding onto it until I go this time next year and just hoping I break even to clear the balance on it.

bazz26

younggalway wrote: »

Yeah I'm still trying to sell it. Planning to move next year anyway, was just more curious than anything. To be honest, the inside of the Golf is so similar to my own car I don't think it would be worth the extra even if I was staying.
At this rate I still haven't had a single call on mine so I'd say I'll be holding onto it until I go this time next year and just hoping I break even to clear the balance on it.

I wouldn't be buying a run out model Golf if your plan is to part with it and move abroad next year. You will be in just as bad position as you are now regarding trying to sell such a new car and it being the old model too.

Regarding your current car, your problem is that most people want to avail of finance to be spending 20k on a car, this is something you cannot offer. Seat are also doing very good finance rates on a brand new Leon for 2020 because like the Golf it's being replaced with a new model next year too.

Wildly Boaring

You talk to your garage about buying it off you?

I know of one girl who Toyota did it for, worked out OK. Her parents have had about 40 toyotas though.

jimbobmalones

Any good deals on PCP finance for the new year?

sheff the ref

Any deals on Electric or Hybrid on PCP?

L-M

sheff the ref wrote: »

Any deals on Electric or Hybrid on PCP?

You’ll get an E Golf Executice now for 34k after grants and 0 percent APR PCP

ctlsleh

am i better of with a higher or lower GMFV? i guess higher means less equity, but less interest for the 3 year period, lower means more interest paid, lower balloon.

with a lower interest rate im better to have a lower GMFV, with a higher interest rate i'm better to have a higher GMFV........

i dont do high mileage, probably about 12-15K KMs per year

Anything else to consider?

Mooooo

Unless it's 0% interest the interest calculated is including the gfmv?

ddarcy

ctlsleh wrote: »

am i better of with a higher or lower GMFV? i guess higher means less equity, but less interest for the 3 year period, lower means more interest paid, lower balloon.

with a lower interest rate im better to have a lower GMFV, with a higher interest rate i'm better to have a higher GMFV........

i dont do high mileage, probably about 12-15K KMs per year

Anything else to consider?

Most assume that you do 15k per year. I’m not sure what your getting but the likes of Toyota and Hyundai will show you the figures for higher mileage (thus lower gmfv). If you are looking at something with 0% interest I’d try to get the lower gmfv if you intend to keep the car. But I guess is what do you plan to do with it?

ctlsleh

Mooooo wrote: »

Unless it's 0% interest the interest calculated is including the gfmv?

OK, thanks for that. so in the context of the repayments the GMFV is irrelevant. and therefore if im looking to keep the car i should be looking for a lower GMFV and if im looking to trade it again, then i shoul be looking for a higher GMFV, right?
but whether its higher or lower now wont affect my repayments at all.

bazz26

You need to calculate how much the car is costing you in total - deposit, interest, monthly repayments and final balloon payment. There will be various figures thrown at you, some to make deals appear attractive and most people just focus on the monthly repayments and don't look at how much the car is costing them overall.

ctlsleh

ddarcy wrote: »

Most assume that you do 15k per year. I’m not sure what your getting but the likes of Toyota and Hyundai will show you the figures for higher mileage (thus lower gmfv). If you are looking at something with 0% interest I’d try to get the lower gmfv if you intend to keep the car. But I guess is what do you plan to do with it?

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

ddarcy

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

If you’re going through a dealer see what hire purchase address they have. I think VW bank could give you a better rate (think it’s 3.9, but you’d have to get it checked). I’m sure they would have connections to a few anyways. I would avoid PCP for a used car

bazz26

The GMFV is how much you still owe at the end of year 3. You need to have a lower GMFV if you want to buy the car outright or trade it in for another PCP deal. The difference between the car's trade in value and the GMFV is how much equity you have in the car to use as a deposit for the next car. If you have a higher GMFV then you have less equity.

bazz26

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

How old is the car now?

Wildly Boaring

At 3 years you gonna buy with cash or finance the lump?

ShadowHearth

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

Does Merc give PCP on used cars now too? Is it directly with Mercedes or independent garage?

ctlsleh

bazz26 wrote: »

How old is the car now?

it a 191 from a Merc dealer, not sure if its Merc or a deal with the bank that they are proposing. HP is same rate.
i havent decided if ill pay cash or just get a loan at the end to cover the GMFV.

If i go HP, whats the benefit other than owning it?

Wildly Boaring

You pay interest on remaining balance.
So if refinancing better with smaller lump.
Quicker you are reducing capital less interest you'll pay.

If using cash to clear you'll have to work out.
There should be a tipping point
If you keep lump high you'll pay no interest on lump but you'll be paying more interest until then as you're capital reducing slowly.


In general a low gmfv is better
Less interest and more equity in the vehicle at end of 3 years if you wanna sell or trade

bazz26

HP is probably over a longer term but you owe nothing at the end of the term, the car is yours. PCP is over 3 years max and you still owe a lump sum at the end of that or you trade in for another car or hand it back and walk away with nothing.

PCP could work if you were going to refinance the lump sum but nobody knows what interest rates will be like in 3 years time so its a tough call to make. You will also refinancing a car that will be 4 years old at that stage, again that might suit you.

Lantus

If your paying via pcp then interest is usually a little lower if you can max out the deposit. Not an issue if your intending to keep. Get some comparative quotes. The gmfv isn't very movable as the dealer will set this. Adjusted by mileage usually. You cannot request a higher or lower gmfv unless someone done has done this!?!

With a maxed deposit and low monthly you should commence saving as much as affordable to help pay off gmfv. If you cannot afford to save on 30% deposit then query affordability.

micks_address

Avantcard are doing loans over 20k over 7 years at 6 percent..might be as attractive as Mercedes pcp

ctlsleh wrote: »

im looking at a used Merc, PCP rate is 5.9%, woudl probably keep it at the end, i usually stay in a car for about 7 years

ShadowHearth

I personally like PCP way more then HP even if you want to buy it out.
With PCP you have that lump in the end, yes. But you do have smaller payments, which let's you put away a bit in to separate savings account. In 3 years time you can use saved to pay off balloon or partially pay off and refinance the rest or if you decide to change, you will have some money saved up to add to deposit already. With HP you will be locked in for 5 ( or 4 ) years and if you will want to change in 3 years, you will need to pay off car fully. With pcp you can change anytime.
I know saved up money is still going to be spent to cover car, but I prefer flexibility of having that money on me in case of emergency and you can always refinance balloon.

Lantus

micks_address wrote: »

Avantcard are doing loans over 20k over 7 years at 6 percent..might be as attractive as Mercedes pcp

Best of luck finding a car dealership that will take credit card.....

ShadowHearth

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

CIP4

ShadowHearth wrote: »

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

Yes any VAG main dealer will be able to see the settlement figure. The garage you bought it off has nothing to do with it anyway as you borrowed the money from VW bank not the dealer anyway.

ShadowHearth

CIP4 wrote: »

Yes any VAG main dealer will be able to see the settlement figure. The garage you bought it off has nothing to do with it anyway as you borrowed the money from VW bank not the dealer anyway.

Ty. I knew the part about dealer and VW bank, was just wondering if different VW brands could access other dealers finance info.

Rusky rusky

ShadowHearth wrote: »

Just a question:

If you are on PCP with VW bank would you still need to get final settlement figure from your dealer, even if you go to other VW family franchise like Skoda, VW or different Seat dealer. Or they would have info on you in the system?

You can also get the final settlement directly from VW bank. Dealer doesn’t know the figure until they request from the bank themselves

Blud

Anyone here able to give me some advice?

Looking at a new Skoda, 30k. Can put up to 15k down on it, am aware that this exceeds the max deposit on PCP. Plan at purchase would be to retain the car post 3 year period anyway.

Am I better going with

(1) 10k deposit plus PCP and then finance or purchase at end

Or

(2) 15k my cash upfront with car loan to cover balance over say 4 years (repayments work out similar to PCP monthly payments.

What are my downfalls with either approach?

Haven't a clue with this stuff.

Lantus

Blud wrote: »

Anyone here able to give me some advice?

Looking at a new Skoda, 30k. Can put up to 15k down on it, am aware that this exceeds the max deposit on PCP. Plan at purchase would be to retain the car post 3 year period anyway.

Am I better going with

(1) 10k deposit plus PCP and then finance or purchase at end

Or

(2) 15k my cash upfront with car loan to cover balance over say 4 years (repayments work out similar to PCP monthly payments.

What are my downfalls with either approach?

Haven't a clue with this stuff.

How are you able to put down 15k on pcp?
Which model?

Large deposit is best if keeping. If pcp then you are paying over 6 years and should be saving towards the gmfv.

In this case paying over 4 years on a normal loan like cu might be better. It's done and dusted and you will own from day 1.

Blud

Lantus wrote: »

How are you able to put down 15k on pcp?
Which model?

Large deposit is best if keeping. If pcp then you are paying over 6 years and should be saving towards the gmfv.

In this case paying over 4 years on a normal loan like cu might be better. It's done and dusted and you will own from day 1.

I'm not able put 15k down on PCP deposit - what I mean is I have 15k available but am aware only 10k or so of that can be used on PCP deposit.

Appreciate response

ddarcy

Blud wrote: »

I'm not able put 15k down on PCP deposit - what I mean is I have 15k available but am aware only 10k or so of that can be used on PCP deposit.

Appreciate response

Depending on the model they are running 0% interest. So id put 10% down now, pay the 0% interest over 3 years and then have the rest to pay off the final payment. I assume the final payment would be around 11k. So you would pay no interest on the car. I think the Octavia is 0pct (that seems what you’re looking at). You may have to spend a little more to get as better spec Model But might be worth looking into. Obviously you need to be able to meet the repayments monthly as well too.

CIP4

Blud wrote: »

I'm not able put 15k down on PCP deposit - what I mean is I have 15k available but am aware only 10k or so of that can be used on PCP deposit.

Appreciate response

Just get the dealer to do you out costs for PCP with 30% deposit and HP Loan over 4 years borrowing 15k then compare the total cost of credit. It really depends on interest rates on both as to which will be cheaper. Although bare in mind at the end of the 3 year PCP if you don’t have the money saved to pay it off you will need to take out another loan which will also be a cost.

micks_address

Lantus wrote: »

Best of luck finding a car dealership that will take credit card.....

It's a loan so they deposit in your bank account.. why wouldn't a car dealership take a credit card? I've paid the last two deposits on my cars with credit card

L-M

micks_address wrote: »

It's a loan so they deposit in your bank account.. why wouldn't a car dealership take a credit card? I've paid the last two deposits on my cars with credit card

Because the cost of using a credit card for 20k could be a €200/€300 fee depending on the bank.

I would take credit card for a max of €1k.

Also just a poster about said about PCP and HP, contrary to popular belief PCP is HP. It’s the exact same thing with the same ts and cs as a Hire purchase agreement (because it is one) but you just sign up to owing a large sum as your final payment.

micks_address

L-M wrote: »

Because the cost of using a credit card for 20k could be a €200/€300 fee depending on the bank.

I would take credit card for a max of €1k.

Also just a poster about said about PCP and HP, contrary to popular belief PCP is HP. It’s the exact same thing with the same ts and cs as a Hire purchase agreement (because it is one) but you just sign up to owing a large sum as your final payment.

Paid 4k no bother last two cars with credit card

L-M

micks_address wrote: »

Paid 4k no bother last two cars with credit card

Depends on the garage. They must have been getting enough on the other end to cover the €40 euro fee, lol.

anplaya27

All I can say is if you are seeking a mortgage, steer well clear. They will undercut what you can potentially take out due to finance.

Lantus

Blud wrote: »

I'm not able put 15k down on PCP deposit - what I mean is I have 15k available but am aware only 10k or so of that can be used on PCP deposit.

Appreciate response

Makes sense!!

Assuming your looking at a solei??

Because you have capital and its zero interest I would balance what you put in now vs the monthly and trying to save to pay off as much of the gmfv as possible as you will pay a few k interest on this.

5k deposit on an octavia at 29k is 370 a month but the dealer can run a few numbers for you or there is the online calculator.

DaveyDave

anplaya27 wrote: »

All I can say is if you are seeking a mortgage, steer well clear. They will undercut what you can potentially take out due to finance.

Depends on your financial situation. We're getting a 4.5x mortgage with my PCP. We'd get 5x if the car was cleared but that wouldn't be realistic as I'll always have some sort of car finance as I fancy something decent.

Anyone who sees themselves changing cars frequently or just wants something decent is going to have car finance for the foreseeable future. I personally wouldn't be cutting regular expenses for a bigger mortgage knowing I'll need money for a car again in the future.

anplaya27

DaveyDave wrote: »

Depends on your financial situation. We're getting a 4.5x mortgage with my PCP. We'd get 5x if the car was cleared but that wouldn't be realistic as I'll always have some sort of car finance as I fancy something decent.

Anyone who sees themselves changing cars frequently or just wants something decent is going to have car finance for the foreseeable future. I personally wouldn't be cutting regular expenses for a bigger mortgage knowing I'll need money for a car again in the future.

So they under cut you too ? Well then. Imagine that. So basically if you get pcp you'll be undercut in anyway, it's still impacting on how much you can borrow. Rebuilding ireland scheme is very strict on pcp, especially amongst single first time buyers. I've heard of them undercutting by half or more the amount you can borrow even if healthily financially otherwise.

Toyotafanboi

Its not exclusive to PCP or a PCP only pitfall though really. Any outgoings or repayments will affect your ability to borrow for mortgage.

DaveyDave

anplaya27 wrote: »

So they under cut you too ? Well then. Imagine that. So basically if you get pcp you'll be undercut in anyway, it's still impacting on how much you can borrow. Rebuilding ireland scheme is very strict on pcp, especially amongst single first time buyers. I've heard of them undercutting by half or more the amount you can borrow even if healthily financially otherwise.

They didn't undercut me. I lowered my repayment affordability by having car finance. Undercutting would be giving me less than the guy who doesn't have a car loan, when we both have the same available cash.

It also technically doesn't effect the amount I can borrow because I can get 3.5x mortgage from any lender.

vintagevrs

Dave speaks a lot of sense. People getting rid of liabilities such as car loans just to present a better picture to a bank for the purposes of maximising the amount they can borrow are potentially going to over stretch themselves. If they are happy to continue with no car finance after the house purchase, that is fine. The bank reduced the amount they were willing to loan by 10% (from 5x to 4.5x) based on a car loan. Sounds reasonable to me.

Jjohnrockk

I booked a Volvo at 5.95 PCP few months ago. Now car is about to be delivered and volvo is offering 3.95%. Which rate will be valid?

bazz26

Did you sign a contract with a specific rate?

How much was the car costing at the time @ 5.95% versus how much is it now costing @ 3.95%? You need to do the maths on both deals as car prices have nearly increased every 4 months or so in recent times so the cheaper rate could actually be dearer if the price of the car actually increased significantly since older higher rate.

It's very easy for people to just look at the headline percentage figures or monthly repayments and totally ignore what the car and credit is costing them over the term of the PCP deal. Then go with whichever is obviously the lowest over the 3 years. If the dealer won't honour the lowest option then you either accept it or tell them to keep the car.

Jjohnrockk

https://www.boards.ie/discussion/comment/120564127#Comment_120564127

Thanks for your response.

1. I had sent them details and later received a letter from BOI about PCP. No other paper was signed. BOI sent me a confirmation letter of approval.

2. Car price cannot be increased as it is at 60 and will lose Grant. It is assured by dealer. Car is in transit.

3. 3.5 PCP is an offer from volvo on their site. 5.95 was offer by Dealer via BOI.

He would gladly let me go as I'm sure he can get a new buyer for the car as a MY24 cost 67K now.

bazz26

So if I'm understanding it correctly:

Car already ordered at 60k has 5.95% PCP and grant.

If you were to order it tomorrow or next month it would be 67k @ 3.95% PCP and no grant?

5.95% is still the better deal if the above is the case. The only ones really who can answer if Volvo will give you the same deal @ 3.95% instead of 5.95% is Volvo themselves but from the looks of it the only reason they are offering a lower PCP rate now is because the price of the car has gone up and it no longer qualifies for the grant meaning they would still get more money from you despite the headline lower interest rate.