How did PCP work out in the end?

Slippin Jimmy

Wuff Wuff wrote: »

has anyone not had a payment collected by VW this month?

mine usually come out the 1st of the month and no collection this month

Mine was taken at the end of last month as per usual. Looks like there is a slight delay with some posters.

Pacifico

Augeo wrote: »

I've seen it mentioned on here a few times ..... 38/39 is lowest I've noticed from browsing.

Mine is approx 33% on a 1.4 TSI Highline Golf.

Purchase price was around 32k inc Extras and GMFV is 10400

micks_address

hi folks,

i have a question on service plan included with PCP. I had one on my last car which i traded for another in February. Was paying 10 euro a month i think for it. I noticed the service plan amount coming out still each month after i got the new car. I thought this might have been set up by accident for my new car as it was included in the price as a 201 deal but it turns out when i queried it with VW bank it was the service plan for the old car. I cancelled the direct debit thinking it was in error but do i need to keep paying the service plan cost of the old cat until the 3 years would have been up in June? Or does the service plan end when the car is traded? I had three services carried out.

Thanks,
Mick

bazz26

Why would you keep paying for a service plan on a car you no longer have? Who was the DD going to? Was it VW or the dealer? I'd notify them that you no longer have the car and to cancel it at their end also.

micks_address

bazz26 wrote: »

Why would you keep paying for a service plan on a car you no longer have? Who was the DD going to? Was it VW or the dealer? I'd notify them that you no longer have the car and to cancel it at their end also.

well i got my three services so i can see an argument that the service plan is for the life of the pcp... which was 36 months.. the services are every 15k km but i do about 20k km per year.. so used them up in 2.5 years

micks_address

bazz26 wrote: »

Why would you keep paying for a service plan on a car you no longer have? Who was the DD going to? Was it VW or the dealer? I'd notify them that you no longer have the car and to cancel it at their end also.

it was going to vw.. i cancelled from bank end

bazz26

Best talk to VW then as they may try and take the next payment and then start sending late payment letters to you. May even have an impact on your credit score worst case.

micks_address

micks_address wrote: »

well i got my three services so i can see an argument that the service plan is for the life of the pcp............

Yup .......... 3 services, cost spread over 36 months. I'd not cancel that personally.

GustavoFring

The service plan is a separate agreement to the PCP. You can call them to pay the balance owed.

micks_address

Augeo wrote: »

Yup .......... 3 services, cost spread over 36 months. I'd not cancel that personally.

yeah i mistakenly thought it was for the new car.. they are slow to respond to queries via email and their phone line is closed so its with them at the moment

L-M

Technically what should of happened is that should have been settlement when you traded in.

You got the use out of the services so you need to call them and settle it or let it run. It’s only going to be 20/30 euro whatever.

Make sure you get the new service plan also, can be activated for up to a year. (But get it done sooner rather than later. You could do it over 24 months this time. Same price just divided by 24) It’s seriously good value and includes a brake fluid change at the 3rd service.

ofcork

I wonder what effect the virus/recession is going to have on car sales and as a consequence pcp.

L-M

Technically those in PCP are the most secure.

Blowheads

ofcork wrote: »

I wonder what effect the virus/recession is going to have on car sales and as a consequence pcp.

Yes, wonder will the cut the rates it how it will all play out

mickdw

This will surely kill car sales for 18 months or so but i dont see any major issue with pcp other than perhaps more than expected hand back at end of term with some pcp customers going back to driving older stuff for a spell. This is arguably a benfit of pcp versus more traditional finance where someone might owe 20k at year 3 of 5 year finance and then need to try to clear that finance and sell the car to get out of the deal if the sh1t hit the fan.
One thing that might be interesting - i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Blowheads

mickdw wrote: »

This will surely kill car sales for 18 months or so but i dont see any major issue with pcp other than perhaps more than expected hand back at end of term with some pcp customers going back to driving older stuff for a spell. This is arguably a benfit of pcp versus more traditional finance where someone might owe 20k at year 3 of 5 year finance and then need to try to clear that finance and sell the car to get out of the deal if the sh1t hit the fan.
One thing that might be interesting - i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Will the cut rates? Audi 3.9% would be tempted to change if the rate dried 6 as am at the end of the 3 years in September

Lantus

As mick says this is potentially the one type of extreme event where handing car back after 3 years and buying another one at a reduced value might work out better financially. You need the price and the timing to be spot on as well as a credit stream.

scooby77

mickdw wrote: »

i believe vw bank is actually a long established wholly owed by vw bank with the sole purpose of financing sales of their own cars. It is not just a marketing idea. This should give vw group cars a sales advantage over others who depend on the high street banks for finance. Vw should have great freedom re rates, re approvals etc.

Toyota have their own bank too, from 2018 here I think. Usually their lowest rate is 3.9% on PCP, but they definitely have financial muscle to offer lower. If they offered 0% on a Camry I'd be tempted!

ofcork

So would I real classy car in platinum spec.

mickdw

scooby77 wrote: »

Toyota have their own bank too, from 2018 here I think. Usually their lowest rate is 3.9% on PCP, but they definitely have financial muscle to offer lower. If they offered 0% on a Camry I'd be tempted!

Wasnt aware of that.
Is the camry selling at all?
I have not seen one on the road at all.

ofcork

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

PaulRyan97

ofcork wrote: »

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

They have 380 sold for 2019. You're probably looking at the Jan-March comparison for 2020-2019, they didn't go on sale until April.

ofcork

Selling pretty well I think Toyota had 400 available last year so nearly sold out,outsold even likes of honda civic opel astra etc.

I've seen a nice few on the road

xboxdad

Augeo wrote: »

I've seen a nice few on the road

I love the Camry, but I couldn't find it in a petrol version. I won't buy a hybrid, as my friends and also multiple neighbours got their catalytic converters stolen, one of them twice. I can't afford that, it's just too expensive to run. They seem to prefer older hybrids, but new ones still have the expensive metals they're after.
So either full EV or petrol for me. (not a diesel fan)

ofcork

Camry is hybrid only can get a petrol corolla alright.

bazz26

The petrol only engined Corolla were dropped by Toyota Ireland earlier this year.

mickdw

Maybe asking a silly question but whats the idea with stealing
Cat from hybrids over any other petrol car?

bazz26

the metals used in the hybrid cat are more valuable.

Mooooo

ofcork wrote: »

According to beep beep 250 this year but they have 0 last year which is wrong have noticed about 30 odd for sale last years cars maybe all demos?

They are in a similar price to the rav4. Stopping the avensis line up has people either going back to the corrolla or into a rav4 I'd say. Cousin used to change the avensis every few years with a fairly consistent cost to change, with the avensis gone and the cost to change increasing he nearly left them but they came back a bit to meet him with the rav4 hybrid eventually. When there was no price difference between the two the rav4 was the better buy in his case

micks_address

not really pcp related but was chatting a car exec last week and he said the numbers of pre reg 201s is massive as all the car rental companies had orders in that got cancelled with covid 19.. he doesnt know what will be done with them now.. in terms of car sales in general i don't see why they wouldnt pick up once things back to normal.. that normal might be next january at this stage.. my tiguan is hardly being driven at the moment so im saving a fair bit on petrol and tolls and i suppose will end up with a lot lower mileage longer term.. i could drop from 20k km per year just going to work to a 3rd of that or 0 of that for 12 months as thats when our crew are suggesting it might be before the workplace is fully open for those who don't really need to be there and can work remotely

micks_address

micks_address wrote: »

.......... in terms of car sales in general i don't see why they wouldnt pick up once things back to normal.. that normal might be next january at this stage.. ..............

As you say, back to normal eventually, that may be January 2021 or beyond that again.

Hundreds of thousands will be after earning less in 2020 than they expected. It's thought by many that working from home will take off a bit due to Covid19 and remain significant beyond Covid19, with folk doing less driving to and from work couples might manage away being a one car household and other folk might decide cutting motoring costs might be prudent going forward.

Of course you'll get folk who can work from home 3 days a week going forward who'll decide they can now afford a Golf GTi instead of a diesel one with an R line kit on it, swings and roundabouts but recessionary times (and they reckon we are in one) are usually more bad then good and the V shape crisis theory isn't reckoned to manifest itself at the recovery end of things.

We might well not go back to the old normal.

L-M

I think that “Loads of cars were registered and the rental companies aren’t taking them” Is an old Wives tale. I heard it a few weeks ago but there are very few hire cars registered, they’ve be there bulk registered on 31st of March for number but it didn’t happen.

Maybe a few garages and registered themselves might have done them in February but there’s no great volume of them.

They’ll be missed, 9 month old stuff sells very well and great value for garages and punters alike.

carsfan2

@L-M,
as an insider, what do you think will happen post garages reopening?
Will there be enhanced PCP offers or discounts generally from manufacturers/importers and will dealers wait to see what happens before any changes to asking prices?

L-M

I’ve already commented on the situation a couple of times here and in short (and probably naivety) I honestly don’t think the manufactures have the money to drop the prices of the cars.

The cost of producing car has increased massively because of emissions, just google WLTP and it’s different phases if you don’t know. We’ve just had another price increase announced (Yes in the middle of all this).

You might see 0 percent on some stuff (Nothing Unusual there) but we’ve just already been through a very strong Q1 and the factories have been closed so stock won’t be available.

In short I think this year is a write off in terms of chasing numbers.

I’m “only” selling cars 13 years so I just about missed/can’t remember what happened the last time all went pear shaped, but I think it’ll be different this time as the whole world/ every manufacturer is in the same situation.

mickdw

How do the dealers survive though.
Sales will be through the floor. Our local main dealer group has something like 11 outlets and 5 franchises. Most of the outlets being recent additions. Its hard to imagine how they wouldnt be in trouble.

L-M

Yeah I honestly don’t know.

It’ll tell a lot of men from the boys. Anything that gets too big too fast especially in Car Sales which any Franchise is a Massive investment.

JoeA3

Hopefully most dealers will come out the other side. They might allow car dealers to open up again soon to some extent (similar to hardware / diy shops).

@L-M are ye managing to do any sales “online” during this situation? I’ve seen some dealers advertise that they are still available for “virtual sales”.

L-M

I have to say I find most if not all “online” enquiries we get are an absolute waste of time.

Just an example of the last 4 I dealt with

Guy emails about a 2017 car we had. Email him back and then he rings me straight away. Looking for a car for his son who needs it in July and his budget is half that of the 2017.

Another chap emailed about a car, asked him a cost of change, then he offered me half. Yes, half.

Another person wanted to trade in their 181 car against my 181 car because they didn’t like theirs.

Another person emailed me and just listed out what their 2012 car was with massive mileage and wanted a price to trade in.

We’ve sold a number of cars while closed, but we dropped them in price to gauge the market. So they were good value.

Toyotafanboi

You think that's bad, you'd want to see some of the service enquiries :pac:

bazz26

Lots of people with way too much spare time at the moment being locked up. Online sale inquiries are at their mercy and gone the way of adverts.ie

L-M

This has nothing to do with Covid unfortunately.

The amount of them we get from the manufacture from various sources. Ring them then

“Hello? What? Who’s this? What car? No.... I don’t want a new car. Have you any car for 5000? Where are you located again?”

L-M

Toyotafanboi wrote: »

You think that's bad, you'd want to see some of the service enquiries :pac:

Oh don’t worry, some of the stuff I’ve been CC’d in makes our emails look 10 times more normal

fifth

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

JoeA3

fifth wrote: »

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

I'm not sure it makes that much difference what the GMFV is in the overall scheme of things, someone correct me if I'm wrong...

I think the reason they set them high is to keep the monthlies as low and as attractive/affordable as possible. Lower monthlies means you are kicking the can down the road and the final payment at the end is larger! Lower GMFV means you're monthly payment will be much higher. VW can set the GMFV lower while still having affordable monthlies, because their product is cheaper (Golf R's etc aside).

The problem is, the residuals on used BMW's are appalling, so you after 3-4 years your car isn't worth that much, if anything, above the GMFV, so not much equity for a trade in and the customer perceives he's been shafted.

What they might do is lower the APR's, they always tend to be higher than VAG or offer big deposit contributions.

bazz26

Yep, BMW went after new customers to the brand by offering attractive low monthly PCP payments but higher GMFV balloon payments. In turn they offer poor trade in values which gave returning customers little or no equity and resulted in sending those returning customers to other brands for better deals.

mickdw

fifth wrote: »

So I'm thinking of getting a new car for the first time and using PCP to finance it, in 2021.

I'm looking at a BMW 530e (or 545e if the rumours are true they will be adding this variant), M Sport, lci/facelift model.

Does anyone know if BMW's GMFV values have been adjusted to give a better chance of having some residuals left in the car when it comes time to trade in? I've read on here people who took low monthly PCP deals from 2016 onwards with BMW were left high and dry.

Yes bmw figures show up everything that is bad about pcp but its their inflated pricing and poor residuals thats are the problems not the pcp.
You are right in that a lower gfv would give a more realistic deal and allow some equity at the end and being real, if someone couldnt afford the higher monthly, they couldnt afford the car anyway.
Still, i dont think there is a benefit to you in taking a lower gfv. Just go with the highest gfv they will allow and keep the saved monthly money in an account for end of the term.
This puts you in same position re being able to get into another car as if they had gone with a lower gfv but the added benefit to you is that if things go tits up, you have the walk away option. If you pay in far more to suit the lower gfv, walking away will be costing alot of money.
Finally, if you are hell bent on the lower gfv, you could just sign up for a high mile deal. All they do then is lower the gfv making your monthly higher and meaning you owe less at end as they expect your high mile car to be worth less. If you then arrive at year 3 with your pristine low mile car, you should have more equity but still much more sensible to keep the money to one side yourself and have more options at end.

carsfan2

This is BMW's current pcp offer on the 5 series

https://discover.bmw.ie/bmwoffers/bmw-5-series/

I haven't a clue if that is good or bad GFV but I do know that the hybrids are very cheap to import due to high UK depreciation, cheap sterling and low vrt here.
That makes pcp on a new one tricky. Might be better to buy a slightly used one and go for a traditional loan, you might end up spending similar money and own it at the end of three years as opposed to owing a GFV.

mickdw

Yes, much more sensible to buy a slightly used one in uk if a private buyer.

fifth

Cheers all.

I'll be doing low mileage and mostly urban driving so the hybrid works and a low mileage plan suits me, I would do around 10,000km a year as I work from home.

Deposit wise, i'd kick in around 10/11k - so somewhere in the middle between min/max deposit. I'd have the cash in savings to buy it outright at the end but not sure I'd want to buy/roll into another or walk away yet. So having a higher GFMV doesn't bother me too much, and having the cash there if needed is preferable.

As regards to buying a slightly older/used model, I'm waiting for the LCI / facelift due in Jan 2021 (it'll likely result in slightly better residual come when the 3 years is up) I am hoping the interest rates might drop a little lower than 2.9% by the time and maybe there'll some decent deposit contributions to get sales going after the economic slump.. also hoping the SEAI grants remain in place.