Did I get a bad PCP deal?

mickdw

You pay interest on all outstanding car cost so you pay on everything except money you paid off at the start by way of cash or trade in.
Of course with the zero percent deals, it's not an issue but otherwise, pcp interest can be deceiving as you are paying interest on the large ballon figure all the way through.

acronym Chilli

dil999 wrote: »

Don't mix up affordability with the method of financing.

You miss the point

acronym Chilli

mickdw wrote: »

You pay interest on all outstanding car cost so you pay on everything except money you paid off at the start by way of cash or trade in.
Of course with the zero percent deals, it's not an issue but otherwise, pcp interest can be deceiving as you are paying interest on the large ballon figure all the way through.

Fair point...
There often are (unproductive) debates on what the interest is charged on. To head that off, what matters more than the rate or the principal are the actual interest payments in €€.

dil999

acronym Chilli wrote: »

You miss the point

Okay. Perhaps I did. I reread your post though and I'm still not clear. Are you simply talking about the logistics of having to start a new PCP deal every 3 years?

gonko

A golf costs 30k??????????
Just wow.

I guess they have to offer something to get people to part with cash like that for a car in this bracket.
1.0 golf.....30k.......what is the world coming to. Next we will have Micra's fetching 50k on the used market

Snotty

So what is happening when people get to the end of these 3 years PCP deals? I suspect a large majority are jumping straight into another PCP deal. The local Hyundai's yard is jammed with 2013/4/5 cars, although there is always a market for 3 year old cars, if that market becomes flooded, doesn't that mean that the GMFV stated now could be nowhere near realistic, who takes the hit on that?

DaveyDave

gonko wrote: »

A golf costs 30k??????????
Just wow.

I guess they have to offer something to get people to part with cash like that for a car in this bracket.
1.0 golf.....30k.......what is the world coming to. Next we will have Micra's fetching 50k on the used market

You can get a poverty spec manual with 15" steel wheels for €21k or even better a Dacia Sandero for €11k. A class leading, top of the line hatchback won't come cheap. The Focus and the Astra add up to similar money once you add all the kit.

It just depends on what you want on your car. You don't need heated seats, headlight washer, self parking, keyless access etc. to get from A to B, but it makes it less of a chore.

draiochtanois

This post has been deleted.

maidhc

DaveyDave wrote: »

You can get a poverty spec manual with 15" steel wheels for €21k or even better a Dacia Sandero for €11k. A class leading, top of the line hatchback won't come cheap. The Focus and the Astra add up to similar money once you add all the kit.

It just depends on what you want on your car. You don't need heated seats, headlight washer, self parking, keyless access etc. to get from A to B, but it makes it less of a chore.

A mid spec Astra is about 23k. It is madness blowing mega bucks on extras in a small hatch. A golf is a golf, hardly a statement of success.

MarkN

Why do so many wannabe financial advisors hover around a motoring forum? Just like they’ll never get their heads around people buying a car with a loan, I’ll never get my head around them telling motoring enthusiasts that they’re mad for buying a new car.

As you were...

DaveyDave

maidhc wrote: »

A mid spec Astra is about 23k. It is madness blowing mega bucks on extras in a small hatch. A golf is a golf, hardly a statement of success.

A top spec Astra is €25k, isn't an automatic and doesn't have some of the kit as standard that the Golf has. A manual Golf Highline is €28,300 with tech pack and keyless and the Astra Elite with extras to match is €27,795. Hardly much of a difference there? A lot of similar cars are cheaper because they haven't got the same spec on them.

Who said anything about a statement of success? It's just a car not a career. Like I said you can get a standard Golf for €21k and you're still going to get an amazing car but some of us like myself want extra features such as dual climate, nicer wheels, nicer seats, heated seats, Android Auto etc. If I wanted to make a statement I wouldn't be driving the same thing as every second person, it's also probably one of the most boring looking cars too, and I love it.

This is the motors forum, someone tell my why I'm explaining a fecking Golf? If you don't like it you should at least understand why somebody wants one?