How did PCP work out in the end?

lawred2

photosmart wrote: »

Hi All

PCP has been going a while now and many people seem to be coming to the end of their 3 year contracts. It would be really helpful to people considering them now to see what the real cost to people was over the three years.

Real trade in prices etc...

Anybody out there willing to put up some info on how they worked out
in the end

ie
Car Type
Price
Deposit
Trade in offered after three years etc...

Thanks for this. Looking at a PCP on a new 5008.

FaganJr

jca wrote:

Did you read the title of the thread?

Yes your experience with PCP. My first and last thankfully

DaveyDave

Let's try keep this thread on topic, there's not too many PCP figures around here and the ones that are here are lost in the main PCP thread. Any negative experiences are best to be posted in a different thread. It would be nice to see what kind of figures people are coming out with so maybe others can get a ballpark for their car.

I'm assuming that as these cars are PCP most of then are going back squeaky clean. Any minor scratches or dings?

tedpan

antiskeptic wrote:

Question 1: Am I to understand the cost of ownership of this car for 3 years has been 29K minus the 9.2K trade in value plus whatever interest applies to the loan element?

Well, plus the 3k interest over the three years. That's where they get you, the interest is on the full value 29k in this case. If you want to keep the car, you'll have additional interest on the next loan.

antiskeptic wrote:

Question 2: There seems to be a lot of grumbling that the guaranteed minimum value is all that's been offered at the end. Why would anyone be surprised at this, unless they actually supposed salesman spiel along the lines of "shure, it'll be certainly worth a lot more than that come the time" was a solid basis to get into a financial agreement.

Yeah, I was a bit naïve, it was the first time I purchased a new car plus it was electric. Lapped up the salesman spiel, but still think I did well with the cost savings on fuel.

Researchlab

carsfan2 wrote: »

To contrast the other poster, I have a pcp on a 3 series bmw. I am 18 months in and owe 33k currently. Car has a gfmv of about 24k. Got a trade in value from supplying dealer of 30k so car is 3k negative equity. cannot see that the car will only depreciate another 6k in 18 months so expect I will hand it back at end of term with nothing to show as I cannot see there being any equity in the car suddenly appearing.
When I told dealer I was surprised and unhappy with the value, he blamed sterling weakness and recent price cuts for new bmws.
Hesaid a fair few people were unhappy now witless lack of equity in their pcp and were choosing to hold on to their cars as a result.
I think this will become more common and will contribute to fewer sales going forward.

Interesting. A salesman from Opel once explained to me that BMW was going over the roof with their PCP deals and that they knew that in three years time it could work out or not but in the meantime BMW would have sold a good number of cars. You can see plenty of them these days - car of the people He said that soon customers would realise that their would be almost no equity to keep the PCP going afterwards. He also said that they were getting BMWs into Ireland at a high cost quite dependent on the sterling. Apparently he was right.

MarkN

Researchlab wrote: »

Interesting. A salesman from Opel once explained to me that BMW was going over the roof with their PCP deals and that they knew that in three years time it could work out or not but in the meantime BMW would have sold a good number of cars. You can see plenty of them these days - car of the people He said that soon customers would realise that their would be almost no equity to keep the PCP going afterwards. He also said that they were getting BMWs into Ireland at a high cost quite dependent on the sterling. Apparently he was right.

The key to BMW ownership on PCP was to not go in with big deposits. If you couldn’t afford the higher repayments then a BMW on PCP wasn’t for you. Plenty of their finance staff advised low deposits and higher repayments to me anytime I looked at something. IMO it suits some brands better than others, VW in particular seem to work out well.

JoeA3

jca wrote: »

Yes you're right you shouldn't have bothered posting. What's with all the cloke and dagger rubbish? Pm you for the figures, seriously? Dial down the aul ego lad you're only driving a golf, Sorry, were only driving a golf..

:rolleyes:

Surely one of the most ignorant asshat replies I've ever seen on boards and that takes some doing.

ShadowHearth

carsfan2 wrote: »

BMW dealers want it both ways in my experience. Low trade in value, giving no benefit to any extras and then selling for top money when they retail your car.
I reckon they try to take between 6 to 10 k out of most deals.
I.e. if your car will retail for 40k they offer you about 32k when they buy it from you.

From what I see so far, Bmw are the worst sinners for this. They just want to have their cake and eat it too.

Lantus

161 Fabia ambition 1.2 90 bhp ambition. 13% deposit.

Enquired for an upgrade before 24 months. Quoted additional 700 deposit to keep payments at 240 ( or 20 a month uplift.) Not a lot but I was a little surprised given its a modern petrol with on target mileage 40k at 2 years.

Didn't haggle or push but decided to leave it there for the time being and will re examine when the 3 years are up.

My feeling is to buy outright. Pay off in 2 years as gmfv will be low enough and then look at an ev. I'm happy enough at this outcome and a pcp exit strategy is needed for everyone at some point. Mrs lantus is on 2nd deal and is also looking to exit when her term is up.

mickdw

MarkN wrote: »

The key to BMW ownership on PCP was to not go in with big deposits. If you couldn’t afford the higher repayments then a BMW on PCP wasn’t for you. Plenty of their finance staff advised low deposits and higher repayments to me anytime I looked at something. IMO it suits some brands better than others, VW in particular seem to work out well.

Vw have it fairly right going with sensible percentage gfv on mid priced cars that hold their value well. The sensible car pricing allows for a fair repayment even with the sensible gfv figure.
Bmw on the other hand with overly optimistic gfv and what i would consider terrible trade in offers together with a high cost car to start with makes it all rather difficult and really considering all that the bmw pcps are a no go.
A 520d is around 50k, add interest and it 55k mimimim id imagine. Its therefore going to cost 30k for 3 years whatever way you cut it and really alot of people getting into a 520d at 480 per month etc dp t reaise the full cost or at a minimum expect their deposit back at end.
A sensible pcp on a 5 series would look like this in my opinion

50k car
Zero interest deal.
30 percent gfv of 15000
Deposit of 10000
36 x €695.

With those figures you would sell less cars but get more customers who could actually afford the car plus the customer would be repace the car too.
Alternative could be zero deposit deal with 25k gfv 695 per month with no possibility of equity.
...... I think we will see more of this type of finance here.

Mercedes have it better. They seem to have no interest in offering e class at low low figures. It seems to be at around 600 per month with healthy enough deposit. They might not sell them to as many people but customers will be returning and buying again and again.
Bmw are just taking 1 time sales and destroying customer confidence and goodwill.

carsfan2

I think part of the reason vw do so well is very low apr plus they give manufacturer contributions as well as dealers willing to give chunks of their margin away to generate a sale and push up their numbers to get a bonus from vw.
Bmw on the other hand do none of these things but rely on the allure of the car itself and the supposed premium status of the badge. This works for a while but people that pushed to get into their first pcp with them are in for a rude awakening come the end of their agreement. I think Audi also have high gfmv which may end up the same.

Dakota Dan

tedpan wrote: »

Interest?

Very good, if only you were smart enough not to have to get a loan.

tedpan

Dakota Dan wrote:

Very good, if only you were smart enough not to have to get a loan.

? Ok man, calm down just wanted to clarify what you were asking..

I said I paid around 3k on the previous page. If you were clever enough to read, you'd know.

rustynutz

Seat Toledo mid spec 1.2 TSI
Bought in 2014 for just under 20k (can't remember exact figure, got a good discount of RRP as it was may and they wanted to sell units before July)
Deposit - €5k
Monthly repayments €216
GFV -€8500
Actual trade in value offered when returning after 3 years -€11500 (this was despite being about 10k over the allowed mileage)
Equity on new car -approx €3k

I was happy with that, I ended up trading for an Ateca Diesel

Max Prophet

rustynutz wrote: »

Seat Toledo mid spec 1.2 TSI
Bought in 2014 for just under 20k (can't remember exact figure, got a good discount of RRP as it was may and they wanted to sell units before July)
Deposit - €5k
Monthly repayments €216
GFV -€8500
Actual trade in value offered when returning after 3 years -€11500 (this was despite being about 10k over the allowed mileage)
Equity on new car -approx €3k

I was happy with that, I ended up trading for an Ateca Diesel

How's the Ateca going ? Looks a decent car and one I am considering.

jca

JoeA3 wrote: »

:rolleyes:

Surely one of the most ignorant asshat replies I've ever seen on boards and that takes some doing.

Are you miffed I didn't pm you for the secret figures? (If they exist at all)

JoeA3

jca wrote: »

Are you miffed I didn't pm you for the secret figures? (If they exist at all)

Look, I'll give your absolutely moronic posts the benefit of the doubt.

I've had a bad week. Last weekend I did have a Golf R on my driveway and a bunch of masked hoodlums attempted to take it. Thanks to a decent salesman (yes they exist) in the VW dealers that Golf is now gone and I walked away with a healthy few quid in my pocket. I did not want to go into specifics of the arrangement for these obvious reasons.

Is that clear enough for you now? F***kin hell... its bad enough dealing with idiots in real life all week. Now I'm doing it on boards.

johnnyskeleton

Got PCP deal on a skoda in 2015 on a 0% interest rate. Will pay off the balloon payment in a few months' time.

Found the whole process straightforward. GMFV is just under 10k. Saw similar models on carzone for around 17k so guessing the dealers would offer me the GMFV or maybe 12k but not a lot more. Not really concerned as I'll keep the car and the dealer hasnt made much of an effort to woo me into buying another new one

photosmart

Thanks to all who actually posted up some information.

biko

JoeA3 and jca, threadbanned until 18th 8am

Danbo!

Rusky rusky wrote: »

Car Type: VW Golf CL 1.2 TSI M6
Price: 23300 ( excl interest)
Deposit: 10%
Trade in offered after three years: 18000
9k of equity
Mileage under 45k km

Pretty good deal me thinks.

Very good deal

Have a 151 VW Golf 1.6TDI Highline, paid 28k and under 40k km on it now. GMFV is 10.5k - It's up in April so going to have a look around this weekend and get a trade in value, but most likely will pay off the 10k and keep it. But if it's anything in that sort of ballpark I'd be tempted to pick up something a bit bigger and second hand for around the €20k mark.

daheff

rustynutz wrote: »

Seat Toledo mid spec 1.2 TSI
Bought in 2014 for just under 20k (can't remember exact figure, got a good discount of RRP as it was may and they wanted to sell units before July)
Deposit - €5k
Monthly repayments €216
GFV -€8500
Actual trade in value offered when returning after 3 years -€11500 (this was despite being about 10k over the allowed mileage)
Equity on new car -approx €3k

I was happy with that, I ended up trading for an Ateca Diesel

so just to be clear on what it actually cost you over the 3 years

deposit 5,000
36 monthly repayments 7,776
total 12,776

Less equity at end (11,500-8500) 3000

Total cost 9,776
annually approx 3,250

biko

Some posts removed, please stay on topic

photosmart

Danbo! wrote: »

Very good deal

Have a 151 VW Golf 1.6TDI Highline, paid 28k and under 40k km on it now. GMFV is 10.5k - It's up in April so going to have a look around this weekend and get a trade in value, but most likely will pay off the 10k and keep it. But if it's anything in that sort of ballpark I'd be tempted to pick up something a bit bigger and second hand for around the €20k mark.

Cheers for that
Please let us know what they offer you on trade-in if you go again!

Danbo!

photosmart wrote: »

Cheers for that
Please let us know what they offer you on trade-in if you go again!

Went to a couple of places this morning. Audi north offered 15.5k at first then 16k at a push. VW garage I bought from offered 16.5k and an additional “bonus” 2k if I go with a new Passat, translates into “we’ve a load of margin”. No interest in new Passat, but I made the mistake of test driving a new A3 S-line saloon. Now I don’t know what to do Their Pcp is at 3.9% APR tho

DaveyDave

Danbo! wrote: »

Went to a couple of places this morning. Audi north offered 15.5k at first then 16k at a push. VW garage I bought from offered 16.5k and an additional “bonus” 2k if I go with a new Passat, translates into “we’ve a load of margin”. No interest in new Passat, but I made the mistake of test driving a new A3 S-line saloon. Now I don’t know what to do Their Pcp is at 3.9% APR tho

If you don't mind me asking, what's making you go look at an A3? Considering you're coming from a Highline, they're very similar although the A3 lacks some of the standard spec like the digital dash. The options are more expensive than VW too.

Danbo!

DaveyDave wrote: »

If you don't mind me asking, what's making you go look at an A3? Considering you're coming from a Highline, they're very similar although the A3 lacks some of the standard spec like the digital dash. The options are more expensive than VW too.

Ah just window shopping really. I spec’d the golf out like a mad thing when I bought it and when I tried to add all the extras I currently have to the A3, it was silly money. Sense will prevail. I hope. Always been a fan of the styling of Audi’s, but probably a bigger fan of money in my bank account.

micks_address

For me it's was kinda neutral. My car was 28500 when new (honda civic tourer) was paying about 380 a month on pcp. Changed in July for a Skoda octavia car cost 35.5k. My payment is approx the same. 0% payment versus whatever honda was. I did have to put 5k of my own money into the new deal to keep the payments down. That's more due to the fact I bought a 7k more expensive car than pcp issue.
Happy enough. What was annoying was that Honda were giving me almost 3k more for my car in trade in than skoda did.. I just didn't fancy the new civic. Well I did apart from poor headroom in the back.
Thanks,
Mick

arleitiss

Was thinking of getting PCP but then read all those stories here and online (especially the recent one about someone being unable to pay off for Mini) so decided not to go for it.

Instead - will look for 08/09 used car from local dealers that offer finance and get finance for 24 months.

(Currently looking for dealers, open to recommendations)

jca

Danbo! wrote: »

Went to a couple of places this morning. Audi north offered 15.5k at first then 16k at a push. VW garage I bought from offered 16.5k and an additional “bonus” 2k if I go with a new Passat, translates into “we’ve a load of margin”. No interest in new Passat, but I made the mistake of test driving a new A3 S-line saloon. Now I don’t know what to do Their Pcp is at 3.9% APR tho

They're great figures for the golf, it just goes to show it's all about the car in the end. I'd go for the Passat in a flash I'd love a decent spec one.

jca

arleitiss wrote: »

Was thinking of getting PCP but then read all those stories here and online (especially the recent one about someone being unable to pay off for Mini) so decided not to go for it.

Instead - will look for 08/09 used car from local dealers that offer finance and get finance for 24 months.

(Currently looking for dealers, open to recommendations)

You'll struggle to get finance for a 10 year old car from any institution.

Lantus

arleitiss wrote:

Was thinking of getting PCP but then read all those stories here and online (especially the recent one about someone being unable to pay off for Mini) so decided not to go for it.

That makes no sense. Finance, car type and affordability cover huge ranges. Unless you have done some figures on the car you want, your affordability and realistic needs your just making abstract decisions.

I would be unable to afford an 09 Aston Martin for example but I can easily afford a new Skoda. If I drive ten km to work a cheap car might be fine. As I drive 100 I want something newer and reliable. Let's work out total ownership costs over 3,5 or even 7 years. Does an older car still look good? It might and that's great but basing your decisions on a single internet paragraph on such a huge purchase seems quite bizzare.

arleitiss

Whatever, I cba to be paying for 3 years and not even owning car at the end.
+ I don't drive that much to justify buying 181 car (I drive maybe 6-7k KM a year tops) and I can't keep driving my current one as it's 2001, and insurance only keeps going up for me every year and I am stuck with one insurancer as all others I've tried calling are refusing me a quote saying that car is way too old.

Currently have to pay 165 Eur a month (24 yo, 5 years NCB), so yeah, need something new but not so new that it will rise insurance due to car value being too high.

I rather pay 150-200 monthly for 24 months than 300+ for 36 months and not even own the car.

SteelyDanJalapeno

arleitiss wrote: »

Whatever, I cba to be paying for 3 years and not even owning car at the end.
+ I don't drive that much to justify buying 181 car (I drive maybe 6-7k KM a year tops) and I can't keep driving my current one as it's 2001, and insurance only keeps going up for me every year and I am stuck with one insurancer as all others I've tried calling are refusing me a quote saying that car is way too old.

Currently have to pay 165 Eur a month (24 yo, 5 years NCB), so yeah, need something new but not so new that it will rise insurance due to car value being too high.

I rather pay 150-200 monthly for 24 months than 300+ for 36 months and not even own the car.

Why not get a 04 so and pay it off for 6 months?

I'd rather pay 150 a month for 6 months and own the car, than do the same for a year on a 08/09 and not even own the car.

arleitiss

SteelyDanJalapeno wrote: »

Why not get a 04 so and pay it off for 6 months?

I'd rather pay 150 a month for 6 months and own the car, than do the same for a year on a 08/09 and not even own the car.

Isn't 04 gonna catch up to me though much sooner in terms of "It's an old car, we wont insure it" ?

SteelyDanJalapeno

As will the 08/09 compared to a 181

Fann Linn

SteelyDanJalapeno wrote: »

As will the 08/09 compared to a 181

However he will have 6 or 7 years before it does hit the 15 year old cut off.

A crazy set up altogether that prople are practically coerced in getting rid of plus 15 year old cars.

But thats a different thread however.

rustynutz

Max Prophet wrote: »

How's the Ateca going ? Looks a decent car and one I am considering.

I'm happy with it, ended up getting the 1.6 diesel, was tempted by the 1.4 turbo petrol but there was only about 200 euro in the price so diesel won for better fuel economy and better residuals ( I hope). Overall a nice car, went for mid spec again. My first choice was the Hyundai Tuscan but the higher interest rate Hyundai were charging put it out of my price range, glad I went with the Seat now though as the Hyundai's are everywhere!

lawred2

rustynutz wrote: »

I'm happy with it, ended up getting the 1.6 diesel, was tempted by the 1.4 turbo petrol but there was only about 200 euro in the price so diesel won for better fuel economy and better residuals ( I hope). Overall a nice car, went for mid spec again. My first choice was the Hyundai Tuscan but the higher interest rate Hyundai were charging put it out of my price range, glad I went with the Seat now though as the Hyundai's are everywhere!

I expect diesel sales to fall hugely in the next five or so years.

Small and efficient turbo charged petrols, hybrids and fully electric will be the main sellers.

That's just my opinion. For what it's worth. Which isn't much

rustynutz

lawred2 wrote: »

I expect diesel sales to fall hugely in the next five or so years.

Small and efficient turbo charged petrols, hybrids and fully electric will be the main sellers.

That's just my opinion. For what it's worth. Which isn't much

I agree, I did weigh up the pros and cons and eventually decided on diesel as price was around the same, I'm hoping diesel doesn't increase in price too dramatically by the time it comes to trading again, hard to predict the future though.

comanche_cor

Car Type: VW Golf HL 1.6 DSG DSG7
Price: 32000 (list price IRRC excl interest)
Deposit: 30%
Trade in offered after three years: 14500 - 20000
Equity ~6K (depending on trade in)
Mileage: 66k km

Been around a few VW & Skoda dealers yesterday. Very jealous of the VW GOLF 1.2 TSI owner!

Almost spat at the Skoda dealer who offered 14.5k! - esp when another had offered 19k an hour earlier!!

mickdw

comanche_cor wrote: »

Car Type: VW Golf HL 1.6 DSG DSG7
Price: 32000 ( excl interest)
Deposit: 30%
Trade in offered after three years: 14500 - 20000
Equity ~6K (depending on trade in)
Mileage: 66k km

Been around a few VW & Skoda dealers yesterday. Very jealous of the VW GOLF 1.2 TSI owner!

More info please if you can. What is owed on the car and what we're the offers received and against what new car?

comanche_cor

mickdw wrote: »

More info please if you can. What is owed on the car and what we're the offers received and against what new car?

Owed at the moment is 12.5K. End of PCP is April so this would drop to just below 12k at end of PCP.

All the offers are on websites and are dependent on make & model.

Dealers will play around with these figures ad-will i.e. say in this case the trade-in is 20K when all figures are included. Personally I don't care as the bottom line figure I am looking at the cost to change. They can dress these figures up any way they want

mickdw

But did you get trade in figures from a garage to change to another golf for example.

comanche_cor

mickdw wrote: »

But did you get trade in figures from a garage to change to another golf for example.

Yes but sorry, don't want to get into exact details yet as I haven't hammered out a deal yet.

In general VW will give a generous trade in allowance - its all about 'vw's hold their value'.

mickdw

No problem. From what I can grasp, you are doing okay anyway and would have up on 25 percent deposit on new golf again.
As you say,it doesnt really matter how the figures are arrived at whether it be contributions,trade in value or whatever.
VW have it fairly right to be fair in terms of people being able to swap easily after 3 years.
Try going back with a BMW!

comanche_cor

mickdw wrote: »

Try going back with a BMW!

Sounds bad alright. IMO I think that 2nd time PCPer will be caught out next time around with VM if they don't contribute to the deposit.

Higher value cars take a larger hit with depreciation that's probably why you are hitting this issue now. I think that VW drivers will see the same issue if they don't top up their deposit when the re-finance their next new car.

TBH we need the cash on hand at the moment but would hope to get out of PCP next time around.

CaptivePortal

can i just ask what your monthly payments are?

mickdw

comanche_cor wrote: »

mickdw wrote: »

Try going back with a BMW!

Sounds bad alright. IMO I think that 2nd time PCPer will be caught out next time around with VM if they don't contribute to the deposit.

Higher value cars take a larger hit with depreciation that's probably why you are hitting this issue now. I think that VW drivers will see the same issue if they don't top up their deposit when the re-finance their next new car.

TBH we need the cash on hand at the moment but would hope to get out of PCP next time around.

I don't have a BMW on pop just talking about numerous examples I've heard.

DaveyDave

Seems VW are giving consistently good prices, I wonder how they'll fare in the next 2-3 years on the Golf with the MK8.

Any other manufacturers offering solid trade ins? Hearing these prices is interesting, it definitely sounds like if you have a VW and you're going back to VW it will work well for you. I'd be curious to see if any others are like that.