How did PCP work out in the end?

Shadowthrone

ewj1978 wrote: »

quick thought, on night shift..

Get a PCP with say 12k p/year mileage but do 25k p/year. so at the end just keep the car and pay final GMFV and not pay mileage costs. Is this a doer or i'm assuming is covered in contract?

Yup this is not a problem. I have done it with my previous pcp.
As long as you are buying the car in full it does not matter how many miles you run up or what damage you do to the car.
Now doing this will give you a lower monthly payment, but that means your balloon payment at the end will be higher. Lower monthly payments do not make the car any cheaper, you still have to pay the full price at the end of the day.

Remember when buying the car in full you are not dealing with the garage anymore, you are dealing directly with the finance company. When you want to pay off the car in full simply call them and they will sort it. You can also pay off the car in full early if you don't want to wait until the end of the pcp. (I saved a little by paying early as it is a little less interest to pay).

Masala

Shadowthrone wrote: »

Yup this is not a problem. I have done it with my previous pcp.
As long as you are buying the car in full it does not matter how many miles you run up or what damage you do to the car.
Now doing this will give you a lower monthly payment, but that means your balloon payment at the end will be higher. Lower monthly payments do not make the car any cheaper, you still have to pay the full price at the end of the day.

Remember when buying the car in full you are not dealing with the garage anymore, you are dealing directly with the finance company. When you want to pay off the car in full simply call them and they will sort it. You can also pay off the car in full early if you don't want to wait until the end of the pcp. (I saved a little by paying early as it is a little less interest to pay).

Is the balloon payment always a fixed amount.... you can play with deposit and hence the monthly payments but the balloon is a set amount predetermined by tge dealer??? E.g.. can you say to dealer "I only want a small balloon of say 5k.. so work backwards"????

Ron Burgundy II

No balloon is predetermined by the finance company and can't be negotiated at the start of the contract. All you are able to do is change the monthly repayments by increasing or decreasing the deposit.

If you have extra cash during the term and wish to put some of it towards the PCP deal, this will shorten the term but your monthly payments and balloon payment will remain the same.

mickdw

Balloon will be adjusted at start if you go for higher mileage allowance.

Shadowthrone

Masala wrote: »

Is the balloon payment always a fixed amount.... you can play with deposit and hence the monthly payments but the balloon is a set amount predetermined by tge dealer??? E.g.. can you say to dealer "I only want a small balloon of say 5k.. so work backwards"????

As the others have said, the balloon payment is predetermined at the start. it is the guaranteed future value.
It is possible to have a lower balloon payment, it just means a higher deposit and monthly payments. But if that's what you want, I'm sure the dealer will do what he can with the finance company to get the sale.
That said, if you are thinking of higher monthly payments then you should weigh it up against standard HP as that might be a better option.

Ron Burgundy II wrote: »

No balloon is predetermined by the finance company and can't be negotiated at the start of the contract. All you are able to do is change the monthly repayments by increasing or decreasing the deposit.

If you have extra cash during the term and wish to put some of it towards the PCP deal, this will shorten the term but your monthly payments and balloon payment will remain the same.

Not necessarily true. You can easily adjust your balloon payment amount before the deal is made. Almost all dealers will work to suit you so they can get the sale. Things like increasing the mileage will increase your monthly payments and decrease the balloon at the end. same with the deposit.

Once you have signed the contract, changing the monthly payments and balloon payment can be difficult, as it is at the discretion of the finance provider. They may be willing to change your amounts if you talk to them but they do not have to. If you do have spare cash you can also pay it towards the balloon payment and have your monthly payments and term left remain the same. But as i said, all this is at the discretion of the finance provider. (remember the finance provider is not the car dealer)

And as i said before, you can pay the full amount off at any time during the contract by simply contacting the finance provider.

Synode

Ron Burgundy II wrote: »

No balloon is predetermined by the finance company and can't be negotiated at the start of the contract. All you are able to do is change the monthly repayments by increasing or decreasing the deposit.

If you have extra cash during the term and wish to put some of it towards the PCP deal, this will shorten the term but your monthly payments and balloon payment will remain the same.

I was able to adjust my baloon payment by decreasing the monthly payments

Shadowthrone

dermotTrellis wrote: »

isnt PCP illegal?

Nothing illegal about PCP.
What could be illegal is the dealer not properly explaining the terms of the contract you are taking.
But honestly it is a very straight forward offer, it is willful ignorance by the consumer more than miss selling by the dealer.
After all does a consumer really think they can get a brand new car and pay about half the price for it over 3 years and expect to own the car without paying the the rest of it at the end? willful ignorance.

PCP is not for everyone, most are probably better off with HP.
But if you are the kind of person who gets a new car every few years, then PCP is perfect for you. I mean why pay full price for a car just to trade it in again. May as well pay half the price and keep trading in. (basically renting new cars every few years, but we Irish have this strange obsession with owning things not just renting them)

Synode

Shadowthrone wrote: »

Nothing illegal about PCP.

They were making a very stupid joke

Shadowthrone

Synode wrote: »

They were making a very stupid joke

Meh, gives me an excuse to rant about peoples willful ignorance regarding pcp. Sick of hearing them complain on the radio about how they 'got screwed'

Ron Burgundy II

Sorry, for the incorrect information. You're correct in regard milage making a difference on balloon payments.

photosmart

Anymore info out there anyone? Any deal information?

Ford
VW
Hyundai etc

mickdw

Hyundai pcp results will be interesting.
I don't think it's going to be pretty come end of term in terms of equity. Still with long warranty,lots may be happy enough to buy out and drive on.

Penalty

Shadowthrone wrote: »

(I saved a little by paying early as it is a little less interest to pay).

Are you sure about that?
You may have paid early but I doubt you saved anything.

PCP are typically fixed interest which means even if you pay off the loan in the first week you are still charged interest for the 3 year period.
That’s how everything is fixed at the start of the contract.

photosmart

Anyone else finishing up - starting new pcp deal? How did you make out?

photosmart

Howdy all

We're heading towards 191 and I'm thinking that a lot of motorists are coming to the end or have come to the end of their 1st PCP deals.

Anyone care of offer some info on what it worked out at over the three years.
This would be really helpful to people who are wary or considering this option.

cheers

P

tedpan

photosmart wrote:

Anyone care of offer some info on what it worked out at over the three years. This would be really helpful to people who are wary or considering this option.

Multiple posters have shared their experiences in this thread already

talla

Traded in a BMW X5 sdrive 25d three weeks ago for the new Touareg , purchased Jan 2016 so PCP was up feb 2019.
Original purchase price was 71k.
Gmfv to pay off in feb would have been just under 29k.
Settlement figure when trading in early was just over 33k.
Trade in price I was given was 46k which gave me 13k equity at the end towards the Touareg which I was pleasantly surprised at considering the BMW sterling promo and new X5 due out in the coming months.
Went with a traditional Hp deal this time as just didn’t want to get into a pcp this time round.

JoeA3

You did ok there, fair play. Coming out with any equity, let alone €13k is a decent deal.

talla

JoeA3 wrote: »

You did ok there, fair play. Coming out with any equity, let alone €13k is a decent deal.

Cheers, yes was a good deal. Wouldn’t have been anywhere near as good if I was trading directly into a BMW dealership (it Was traded into Frank Keane Volkswagen so probably ended up in one of their BMW franchises)

carsfan2

talla wrote: »

Cheers, yes was a good deal. Wouldn’t have been anywhere near as good if I was trading directly into a BMW dealership (it Was traded into Frank Keane Volkswagen so probably ended up in one of their BMW franchises)

Yes I doubt a BMW dealer would have given any more than 40k. Guess VW want to get a few touaregs on the road.
Did you buy now or do a deal for January at those figures?

photosmart

tedpan wrote: »

photosmart wrote:

Anyone care of offer some info on what it worked out at over the three years. This would be really helpful to people who are wary or considering this option.

Multiple posters have shared their experiences in this thread already

Indeed they have but its nice to get up to date information. Many threads on boards are going for years because as time moves on things change.

talla

carsfan2 wrote: »

Yes I doubt a BMW dealer would have given any more than 40k. Guess VW want to get a few touaregs on the road.
Did you buy now or do a deal for January at those figures?

Bought now, collected the car two weeks ago Design Launch Edition R Line model - I wold have put another 15k km between now and Jan.

digiman

talla wrote: »

Traded in a BMW X5 sdrive 25d three weeks ago for the new Touareg , purchased Jan 2016 so PCP was up feb 2019.
Original purchase price was 71k.
Gmfv to pay off in feb would have been just under 29k.
Settlement figure when trading in early was just over 33k.
Trade in price I was given was 46k which gave me 13k equity at the end towards the Touareg which I was pleasantly surprised at considering the BMW sterling promo and new X5 due out in the coming months.
Went with a traditional Hp deal this time as just didn’t want to get into a pcp this time round.

That us an unbelievablely good deal, sounds like a mistake which is why I can see now you didn't argue any further on the price as they are bound to cop it. The Touraeg is very highly priced so I guess they are taking alot of it to boost up the trade in price.

DaveyDave

Maybe they want the Touareg to sell more than 3 a year for a change

Westwood

It worked out great in the end, made 8 months PCP payments with a large (max) deposit and discount for scrappage then I cleared it in full thankfully. I now have a newish car that's fully paid for which I'll drive for the next 10 years to justify the cost of new. Thankfully I realised the importance of money and interest and PCP is a terrible idea by anyone's standards, the real scam is paying interest on the deferred ballon for the 3 years, I won't make that mistake again.

MojoMaker

As a matter of interest, what's your position on 0% APR PCP contracts?

ShadowHearth

MojoMaker wrote: »

As a matter of interest, what's your position on 0% APR PCP contracts?

Best ones to get. I took my car with 0% APR. Not even documentation fees apply.

As poster above said: when they do apr, they load it on whole sum you own, not the middle part that you paying off. Its a sneaky thing, but still, if you get low apr, then it makes sense. On the other hand if apr is as high as 5.9%, then it kind of sucks.

EndaHonesty

I traded my 0% PCP Octavia VRS Combi against a 0% PCP Superb Combi Sportline 190 about 2 months ago.

It was right at the end of my 36 months and my settlement fee for the Octavia was €14,400

The PCP annual mileage limit on my car was 12,000 kms and my car had 110,000 kms on it.
I'm not fussy about cleaning my cars so it needed a good clean and had some scuffs on the near side alloys.

I had serviced the car as per the service book and had refused the offer of long life servicing with I exited the service pack term.

I had put a Skoda detachable tow-bar on and put Skoda rubber mats front and back and in the boot.

The mileage or condition were never mention, and in fact I don't think the salesman even looked at my car, nevermind driving it.

The dealer had a very similar Octavia sitting in the yard with a price of €21,995 on it.

The list price on the Superb was €41,695.

The dealer said he was giving me €18,000 for mine as a trade in value and there was a €2,000 contribution to the Superb so effectively €20,000 for my Octavia.

My old car was sitting in the yard a couple of weeks ago with a price of €19,995 on it.

I was happy with the deal and the 0% so I didn't really negotiate on the deal except for getting the 3 year service pack, a skoda detachable towbar and the full set of skoda rubber mats to protect the interior. The value of these items was approx. €1,400.

So all in all, the PCP experience worked out exactly as I had imagined when I first bought the Octavia.
I estimated at that time that the VRS would be worth around €20k when it came to the end of the 36 months term and it ended up around that.

My monthly on the Octavia was €480 pm and the Superb is €550 pm so it's not a big increase when you consider the €14,400 settlement fee on the Octavia corresponds to €390 pm when broken down over 36 months.

If I had financed the €14,400 then it could be €440-€450 pm, depending on the interest rate.

So my lad logic is; I have a new car for a little more than keeping the old car...

On the actual cars, the engine in the Octavia is much better than the Superb 190. The Octavia was much quicker feeling and in reality.
If I'm honest I miss the Octavia...

The Superb is a much "better" car in many ways; size, equipment, build quality & it's a much better looking car IMO, but the wallowing suspension (despite being "sport" suspension) and the resulting poor body control is very disappointing.

GustavoFring

EndaHonesty wrote: »

If I'm honest I miss the Octavia...

The Superb is a much "better" car in many ways; size, equipment, build quality & it's a much better looking car IMO, but the wallowing suspension (despite being "sport" suspension) and the resulting poor body control is very disappointing.

Pretty much what happened me when I switched from a VRS to a 190 Sportline as well. Didn't even keep it a year despite by most measurable things it was a much better car.

Synode

ShadowHearth wrote: »

Best ones to get. I took my car with 0% APR. Not even documentation fees apply.

As poster above said: when they do apr, they load it on whole sum you own, not the middle part that you paying off. Its a sneaky thing, but still, if you get low apr, then it makes sense. On the other hand if apr is as high as 5.9%, then it kind of sucks.

What's sneaky about them charging interest on the amount you owe? It's pretty straight forward

EndaHonesty

GustavoFring wrote: »

Pretty much what happened me when I switched from a VRS to a 190 Sportline as well. Didn't even keep it a year despite by most measurable things it was a much better car.

What did you change the Superb for?

carsfan2

@endahonesty , you were 76k over your mileage allowance and dealer didn’t penalize you at all?

JoeA3

EndaHonesty wrote: »

What did you change the Superb for?

He bought a 330d Touring.

rovertom

Synode wrote: »

What's sneaky about them charging interest on the amount you owe? It's pretty straight forward

Ya it's not sneaky but it catches a lot of people. 5.9 percent on a pcp will work out more expensive than 5.9 on hp due to leaving a large lump of the capital sitting aside unpaid on pcp.
zero per cent pcp is a no brainer though and if a zero per cent deal can be done with similar discounts to a cash buyer, it is the best deal out out there.

christy02

EndaHonesty wrote:

The PCP annual mileage limit on my car was 12,000 kms and my car had 110,000 kms on it.

Funny they will sell you a diesel and then cap mileage at 12000km a year, which in reality should not be anywhere near diesel territory.

rovertom

I'm hearing reports of vw trade ins still working out very well for equity at end of term. That's impressive considering UK imports etc. Vw must be heavily discounting behind the scenes to allow this.

photosmart

Indeed - thats partially why I started the thread - if people can see the real cost it will give them useful info in deciding
the likely outcome. VW know this also and if there are reports of people going off three year deals and getting stung
re less equity than they expected then its going to impact new car sales going forward.

Decoda

Was in VW this afternoon with my 161 vw passatt 1.6tdi comfortline with 80k kilometres on the clock. Trading against a 191 vw Tiguan highline with technology pack and R line exterior.

List Price of Tiguan €43,080 and a Part Exchange of €18,500 for my car
Settlement figure on my Passatt €12,750
Equity €5,750

New Deal

0% PCP
Deposit of 30% €13,250
GMFV €15,000
€410 monthly
Cash approx €7,500 needed

Said I'd come back later this week after having a think about it. Was hoping for higher equity (who doesnt?) so will have to look at reducing the deposit and increasing the monthly payment.

Thoughts?

rovertom

Decoda wrote: »

Was in VW this afternoon with my 161 vw passatt 1.6tdi comfortline with 80k kilometres on the clock. Trading against a 191 vw Tiguan highline with technology pack and R line exterior.

List Price of Tiguan €43,080 and a Part Exchange of €18,500 for my car
Settlement figure on my Passatt €12,750
Equity €5,750

New Deal

0% PCP
Deposit of 30% €13,250
GMFV €15,000
€410 monthly
Cash approx €7,500 needed

Said I'd come back later this week after having a think about it. Was hoping for higher equity (who doesnt?) so will have to look at reducing the deposit and increasing the monthly payment.

Thoughts?

Is this for an 18 or 19 tiguan

Decoda

Trading against a 191 vw Tiguan

rovertom

Decoda wrote: »

Trading against a 191 vw Tiguan

The figures are to be expected however considering the straight sale discount that would be available without trade in, you are only getting about 16500 for your passat.
Anyway, you are ending up with about 18 percent equity compared to the price of passat when new so it might be wise to run the deposit at around 20 percent max on this car.
That would be 530 per month with 20 percent deposit and only needing to put in 3200 cash now.

Decoda

Yeah, spent a good bit of time pushing and pushing but couldn't get them to budge from €18,500 knowing that in effect it was closer to 16,500 / 17,000. I agree that I need to get the monthly payments up and the deposit down to be better prepared if I go PCP again. Bought the Passatt with 30% deposit and monthly payment of €340. If I was back again I would have gone with a smaller deposit and greater monthly payments so that the transition this time would have been less of an increase per month.

Muscles Schultz

Decoda wrote: »

Yeah, spent a good bit of time pushing and pushing but couldn't get them to budge from €18,500 knowing that in effect it was closer to 16,500 / 17,000. I agree that I need to get the monthly payments up and the deposit down to be better prepared if I go PCP again. Bought the Passatt with 30% deposit and monthly payment of €340. If I was back again I would have gone with a smaller deposit and greater monthly payments so that the transition this time would have been less of an increase per month.

If the monthly payments are such an issue for you then maybe it’s too much car for you lad

Decoda

Thanks......your concerns are noted.....

Sorry what's the advantage of the lower deposit?

Edit, or is it not really an advantage but more a reality of the trade in?

GustavoFring

Lizbeth Gifted Ram wrote: »

Sorry what's the advantage of the lower deposit?

Edit, or is it not really an advantage but more a reality of the trade in?

If it's 0% APR theres no penalty for taking the higher payments and keeping the cash in your own account should you need to get out for any reason.

Kersh

photosmart wrote: »

Anyone else finishing up - starting new pcp deal? How did you make out?

We are coming to the end of our PCP on a Peugeot 2008 1.6HDi.

We dont want to go PCP route again, so are thinking of paying the balloon payment €7300, and keeping the car.

She has a Jaguar S-Type 2.7 sitting there doing nothing, so may sell the Peugeot on in the new year, and put the S-Type back on the road.
We also have an XC90 for shuttling the 3 kids around, and find the 2008 Peugeot just a bit small!! We only had 2 kids when we got it.

Am I thinking straight??

rovertom

Kersh wrote: »

We are coming to the end of our PCP on a Peugeot 2008 1.6HDi.

We dont want to go PCP route again, so are thinking of paying the balloon payment €7300, and keeping the car.

She has a Jaguar S-Type 2.7 sitting there doing nothing, so may sell the Peugeot on in the new year, and put the S-Type back on the road.
We also have an XC90 for shuttling the 3 kids around, and find the 2008 Peugeot just a bit small!! We only had 2 kids when we got it.

Am I thinking straight??

Well yes if you are not buying something else, you have little option but to buy out the Peugeot or else you will be throwing away any money built up in it. It's surely worth more than the settlement figure even for a quick private sale.
With the jag sitting there and the xc90, taking the pcp day one was probably the crazy bit.

Kersh

rovertom wrote: »

With the jag sitting there and the xc90, taking the pcp day one was probably the crazy bit.

Jag needed a turbo fitted at the time, and she wanted a new hassle free car with warranty, so we had a look around, and went with the Pug 2008.
The XC90 only came halfway through the PCP deal, so that 3rd child changed the scenery!!

The Peugeot has served us well, and we seem to like the bigger cars, so not keen on going again. Pay the balloon, and sell is my thinking.

rovertom

Kersh wrote: »

Jag needed a turbo fitted at the time, and she wanted a new hassle free car with warranty, so we had a look around, and went with the Pug 2008.
The XC90 only came halfway through the PCP deal, so that 3rd child changed the scenery!!

The Peugeot has served us well, and we seem to like the bigger cars, so not keen on going again. Pay the balloon, and sell is my thinking.

Ya. Pay it and sell it on or sell on the jag but that's worth little I assume.