How did PCP work out in the end?

mickdw · 10-12-2019 3:30pm

DaveyDave wrote: »

I don't believe 0% makes any difference to the dealer, just means the bank isn't making money off those payments. Dealer is paid the same for the car. I believe the dealer gets commission for making PCP sales but not entirely sure.

Very few models are 0%, the majority will have interest. If 1/3 of Golfs are 0% Highlines, this is likely made up by the 2/3 Comfortline/Trendline models at 3.9%. Then you've got 1.9% on the GTI and R, they're €45-45k cars so will bring in decent equity.

Then you've for 5.9% on all VW second hand cars, PCP isn't as favourable on second hand cars but still better than a bank loan.

Those Scania, Lamborghini and Bugatti don't pay for themselves either.

You would want to do the figures on a 5.9 percent Pcp to see what the equivalent interest rate would be on a straight hp deal cause Pcp can get expensive due to paying interest on the large offset amount not being settled until end of term.
Personally I'd take a low or zero percent Pcp everyt i me even if cash was sitting in bank.
I would not take a 5.9 percent Pcp on a used car though.

L-M · 10-12-2019 5:47pm

DaveyDave wrote: »

I don't believe 0% makes any difference to the dealer, just means the bank isn't making money off those payments. Dealer is paid the same for the car. I believe the dealer gets commission for making PCP sales but not entirely sure.

Very few models are 0%, the majority will have interest. If 1/3 of Golfs are 0% Highlines, this is likely made up by the 2/3 Comfortline/Trendline models at 3.9%. Then you've got 1.9% on the GTI and R, they're €45-45k cars so will bring in decent equity.

Then you've for 5.9% on all VW second hand cars, PCP isn't as favourable on second hand cars but still better than a bank loan.

Those Scania, Lamborghini and Bugatti don't pay for themselves either.

The Trendline Golf would never be sold on PCP and more than likely never a Comfortline either. I know they advertise PCP on them, but between the lower APR and higher future value, the payments on a Highline could be the same, sometimes slightly lower than a Trendline on PCP.

It’s always the Highline spec.

sk8board · 10-12-2019 11:06pm

L-M wrote: »

The Trendline Golf would never be sold on PCP and more than likely never a Comfortline either. I know they advertise PCP on them, but between the lower APR and higher future value, the payments on a Highline could be the same, sometimes slightly lower than a Trendline on PCP.

It’s always the Highline spec.

Pretty much yep - we just changed on Friday out of a golf highline into a golf r-line, both on 0%.
The higher spec cars with predefined specs and tech packs can be discounted off list, but if you spec a car yourself, each option ticked is paid in full on top of your monthly pcp , however it doesn’t get added to the GFV, so you’re just paying for that option in full over the 3 years and getting zero for it on the other end.

L-M · 10-12-2019 11:29pm

Ah you wouldn’t get 0 for it.

For example if you had a sunroof, you’d likely get half it or more back. Which would turn into equity at the other end

carsfan2 · 11-12-2019 10:00am

L-M wrote: »

Ah you wouldn’t get 0 for it.

For example if you had a sunroof, you’d likely get half it or more back. Which would turn into equity at the other end

Maybe on a VW. I’ve seen some figures for Bmw’s and majority of options add zero to the value. Only m sport plus pack and a couple more add any value at the back end.

L-M · 11-12-2019 10:55am

carsfan2 wrote: »

Maybe on a VW. I’ve seen some figures for Bmw’s and majority of options add zero to the value. Only m sport plus pack and a couple more add any value at the back end.

That’s because the majority of options on BMW are ridiculous and should be standard anyway.

TheBigEvil · 11-12-2019 11:50am

bazz26 wrote: »

BMW were mainly interested in bringing new customers to the brand by offering what appeared to be low attractive monthly PCP repayments. They then screwed over existing customers and returning customers through low ball trade-in values and little or no PCP equity. They will tell that weaker sterling and cheaper imports were responsible but these factors don't seem to influence the sticker prices of their used cars on their forecourts. They want their cake and eat it at the same time.

Yea, this exactly. Happened to me a couple of years ago. Got a new 3 series on PCP and when PCP deal was up, I went in to trade in they screwed me and only offered me the GMFV. I was with them for nearly two hours, with their head of finance, arguing that there had to be at least a few K of equity in it. Car was perfect condition, mileage was as agreed in the PCP agreement. They were having non of it. The same 2nd hand car was selling on their lot for 8k more than my GMFV. They wouldn't even give me 1k equity.

So I said screw it and I went to VW, they gave me 5k equity on the BMW, and I got a fully loaded, new, Passat on their PCP, 0% finance.

I'd never touch BMW again. They want it every way.

mickdw · 11-12-2019 9:48pm

TheBigEvil wrote: »

Yea, this exactly. Happened to me a couple of years ago. Got a new 3 series on PCP and when PCP deal was up, I went in to trade in they screwed me and only offered me the GMFV. I was with them for nearly two hours, with their head of finance, arguing that there had to be at least a few K of equity in it. Car was perfect condition, mileage was as agreed in the PCP agreement. They were having non of it. The same 2nd hand car was selling on their lot for 8k more than my GMFV. They wouldn't even give me 1k equity.

So I said screw it and I went to VW, they gave me 5k equity on the BMW, and I got a fully loaded, new, Passat on their PCP, 0% finance.

I'd never touch BMW again. They want it every way.

Ya they are destroying the bmw business due to being too greedy on individual deals.
It's a very similar tale to what I'd said above re mercedes giving better trade in on 5 series than bmw.
They are screwing people, plain and simple. Playing on some people's belief that they need to trade in to bmw.

sk8board · 11-12-2019 10:13pm

L-M wrote: »

Ah you wouldn’t get 0 for it.

For example if you had a sunroof, you’d likely get half it or more back. Which would turn into equity at the other end

The 2 options we priced on Thursday at vw were different alloys and the pano sunroof. It was about €75-100 extra pm for them and no change to the min value, which is pretty high. He said the generic offer on a well looked after golf was €2k above gmv irrespective of extras and we could expect to get none of the money spent on extras back

edit: important to add that this happens because all the pcp golfs are higher spec Highline and rLine’s, so the few remaining missing extras won’t make much diff to the resale value

L-M · 11-12-2019 10:36pm

sk8board wrote: »

The 2 options we priced on Thursday at vw were different alloys and the pano sunroof. It was about €75-100 extra pm for them and no change to the min value, which is pretty high. He said the generic offer on a well looked after golf was €2k above gmv irrespective of extras and we could expect to get none of the money spent on extras back

edit: important to add that this happens because all the pcp golfs are higher spec Highline and rLine’s, so the few remaining missing extras won’t make much diff to the resale value

Pan roof would definitely add a few bob to your equity next time around, that’s for sure. Because very few other Golfs will have one.

Not sure what you mean about 2k above GMFV. Some 171 Golfs are coming back at 10k GMFV and being allowed 17-18k on trade in.

Sounds like you’re in Dublin and be robbed if you’re being offered 14k

carsfan2 · 11-12-2019 11:15pm

L-M wrote: »

Pan roof would definitely add a few bob to your equity next time around, that’s for sure. Because very few other Golfs will have one.

Not sure what you mean about 2k above GMFV. Some 171 Golfs are coming back at 10k GMFV and being allowed 17-18k on trade in.

Sounds like you’re in Dublin and be robbed if you’re being offered 14k

Dublin dealers give worse trade ins?

mickdw · 12-12-2019 12:43am

sk8board wrote: »

The 2 options we priced on Thursday at vw were different alloys and the pano sunroof. It was about €75-100 extra pm for them and no change to the min value, which is pretty high. He said the generic offer on a well looked after golf was €2k above gmv irrespective of extras and we could expect to get none of the money spent on extras back

edit: important to add that this happens because all the pcp golfs are higher spec Highline and rLine’s, so the few remaining missing extras won’t make much diff to the resale value

2k above gfmv really is a piss take as if you think about it, if you were to hand the car back and walk away, you would get 2k discount for straight buy on a new car so 2k for your trade in is effectively zero.
If that 2k also includes any vw contributions, you would be getting less than zero equity.

bazz26 · 12-12-2019 1:01am

mickdw wrote: »

2k above gfmv really is a piss take as if you think about it, if you were to hand the car back and walk away, you would get 2k discount for straight buy on a new car so 2k for your trade in is effectively zero.
If that 2k also includes any vw contributions, you would be getting less than zero equity.

I wonder was the dealer trying to discourage the OP from making a factory order rather than a car already in stock or in the country?

Actually I thought production of the Mk7.5 had finished now and the production line tooling has been switched over to the Mk8?

mickdw · 12-12-2019 1:07am

Very possibly. Sure they always want to pawn a car out of stock on everyone.

L-M · 12-12-2019 7:46am

mickdw wrote: »

Very possibly. Sure they always want to pawn a car out of stock on everyone.

That’s not really true, obviously it’s easier to sell from stock but sometimes the car can’t be ordered due to stock levels or there’s ridiculous lead time’s on ordering same.

For example, to order a Polo from factory takes the bones of 30 weeks from start to finish.

micks_address · 12-12-2019 10:29am

mickdw wrote: »

2k above gfmv really is a piss take as if you think about it, if you were to hand the car back and walk away, you would get 2k discount for straight buy on a new car so 2k for your trade in is effectively zero.
If that 2k also includes any vw contributions, you would be getting less than zero equity.

I was getting similar figures from vw and Skoda dealers in Dublin bar one .headed to drogehda and got a better deal in the finish

sk8board · 12-12-2019 12:05pm

L-M wrote: »

not sure what you mean about 2k above GMFV. Some 171 Golfs are coming back at 10k GMFV and being allowed 17-18k on trade in.

Sounds like you’re in Dublin and be robbed if you’re being offered 14k

The GMV on the 171 highline was €17k, and we were given €20k as a trade in. The list price was €29k initially, so @ 0% apr we paid €11.5k off €29k and then got €20k trade in.

In addition, The new golf is a run out model 1.5tsi rline, with leather and upgraded tech pack, so it’s a decent upgrade, but is reduced in price to the 1.2tsi price, plus vw contribution of €1.5k, making it around €29k also, and the gmv will be €19k.

@ 0% financing the repayments are actually slightly less (€6), and the balloon is almost €2k more (€10.3k v €12.2k).

L-M · 12-12-2019 12:23pm

The GMV on a Golf RL 1.5 is 12034?

Edit sorry, I think I’ve misread.

We’re right on the baloon figure (That’s the GMF, nothing else is guaranteed).

Where are you getting the 17 from?

Donie75 · 13-12-2019 3:54pm

Has anyone gone from a VW PCP to an Audi PCP? I have a 172 Highline Passat on 0% PCP. I've had a good few Passats so I'm tempted to for an A6 next time round. Are the Passat trade-ins looking okay for the 201 trade ins?

bazz26 · 13-12-2019 4:05pm

Well both PCP offers would be from the same bank - VW Bank. Regarding trade-in value of your Passat, unless the Audi dealer sells VWs through a sister branch then it's likely your Passat would be sold through the trade to another dealer as an Audi dealer will not retail a non Audi car on their forecourt, so they may not offer you as much as a VW dealer would offer you against another VW. Your also jumping from a non premium brand to a premium brand so you might want to be sitting down when you get a cost to change figure from them.

hooch-85 · 13-12-2019 4:12pm

I inquired about a change from my 151 Golf GTD to a 172 Leon Cupra the other day. I nearly had a weakness after it. I'll be keeping my diesel for a while yet i imagine.

tomwaits48 · 13-12-2019 5:04pm

I'm 2 years into a PCP on a Tiguan Comfortline 2.0 Manual Diesel 181 - 16km on the clock, paying just under €450 a month. Trade in price offered circa €25k

For €500 deposit, VW are offering a 120 VM Tiguan, 1.5 Petrol, Automatic, Highline model, for a similar monthly amount at 0% finance. I think I'll go with it.

DaveyDave · 13-12-2019 5:32pm

tomwaits48 wrote: »

I'm 2 years into a PCP on a Tiguan Comfortline 2.0 Manual Diesel 181 - 16km on the clock, paying just under €450 a month. Trade in price offered circa €25k

For €500 deposit, VW are offering a 120 VM Tiguan, 1.5 Petrol, Automatic, Highline model, for a similar monthly amount at 0% finance. I think I'll go with it.

Petrol will be a smoother and nicer drive. Paired with a DSG and Highline spec I'd say it will be a lovely car.

ShadowHearth · 13-12-2019 6:46pm

hooch-85 wrote: »

I inquired about a change from my 151 Golf GTD to a 172 Leon Cupra the other day. I nearly had a weakness after it. I'll be keeping my diesel for a while yet i imagine.

Did you went for that 172 that does not have pics up? Did you see it in flesh?
My end of PCP is coming in 6 months and Leon Cupra is main contender, but if they will take a piss with trade in value, I will just pay off balloon and drove it for longer.

hooch-85 · 13-12-2019 7:02pm

That's it, I just enquired over the phone. They don't have it in stock yet. Pm if you want more details.

Ionised · 13-12-2019 7:16pm

My 172 Cupra will be on the market in a few months once I trade it. Should have around 25k on it by then. Keep your eyes open

L-M · 13-12-2019 7:50pm

tomwaits48 wrote: »

I'm 2 years into a PCP on a Tiguan Comfortline 2.0 Manual Diesel 181 - 16km on the clock, paying just under €450 a month. Trade in price offered circa €25k

For €500 deposit, VW are offering a 120 VM Tiguan, 1.5 Petrol, Automatic, Highline model, for a similar monthly amount at 0% finance. I think I'll go with it.

€25000 plus the €1500 deposit contribution?

ShadowHearth · 13-12-2019 7:59pm

hooch-85 wrote: »

That's it, I just enquired over the phone. They don't have it in stock yet. Pm if you want more details.

They got pics up, blue estate. Looks nice.
I still can't get my head around on how much little price dropped after 3 years. Demand I guess...

A bit mad for 27k eu, when I know my local seat dealer, where I got my baby Cupra has 192 demo for 35k eu.

I presume they really low balled you on trade in.

tomwaits48 · 13-12-2019 9:03pm

L-M wrote: »

€25000 plus the €1500 deposit contribution?

Tiguan Highline 1.5 tsi dsg

€39,200.00

Part exchange

€25,500.00

Deposit

€500.00

mickdw · 13-12-2019 9:34pm

Donie75 wrote: »

Has anyone gone from a VW PCP to an Audi PCP? I have a 172 Highline Passat on 0% PCP. I've had a good few Passats so I'm tempted to for an A6 next time round. Are the Passat trade-ins looking okay for the 201 trade ins?

Big big money difference between A6 and Passat. The new A6 is beautiful though.
You would probably be looking at near twice deposit and twice monthly

micks_address · 13-12-2019 11:33pm

tomwaits48 wrote: »

Tiguan Highline 1.5 tsi dsg

€39,200.00

Part exchange

€25,500.00

Deposit

€500.00

Must be big push on the petrol dsgs.. mine is same with tech pack.. I'm on 440 per month got 22500 trade in for my Octavia diesel dsg sportline 3 year old but had to put in 5k deposit

L-M · 14-12-2019 11:31am

tomwaits48 wrote: »

Tiguan Highline 1.5 tsi dsg

€39,200.00

Part exchange

€25,500.00

Deposit

€500.00

Looks like they’re giving you over 28700 almost for your own car, those are obviously discounted back figures. Looks like a good deal

un5byh7sqpd2x0 · 14-12-2019 11:38am

ShadowHearth wrote: »

A bit mad for 27k eu, when I know my local seat dealer, where I got my baby Cupra has 192 demo for 35k eu.

That's "cash price" though, it's 38k with a trade in.

micks_address · 14-12-2019 12:03pm

L-M wrote: »

Looks like they’re giving you over 28700 almost for your own car, those are obviously discounted back figures. Looks like a good deal

I hope all us petrol Tiguan owners won't be lamenting mpg next year !

L-M · 14-12-2019 4:13pm

micks_address wrote: »

I hope all us petrol Tiguan owners won't be lamenting mpg next year !

Yeah, I had a 1.5 for 6 months and back in a 2.0 TDI and I can’t say I notice much of a difference. I do a real mix of driving, rarely motorway. About 15k kms done in each.

yabadabado · 14-12-2019 5:39pm

Is there any good online calculators available?

I have a fair idea what I'm after with cost/payments etc and just looking for a guide before I start going to dealers .

tomwaits48 · 14-12-2019 5:48pm

L-M wrote: »

Looks like they’re giving you over 28700 almost for your own car, those are obviously discounted back figures. Looks like a good deal

Cool, it’s my third car bought from this particular sales rep so hope he is looking after me.

question about automatics though, do they hold their value?

L-M · 14-12-2019 6:08pm

tomwaits48 wrote: »

Cool, it’s my third car bought from this particular sales rep so hope he is looking after me.

question about automatics though, do they hold their value?

More so than manuals.

There’s a bit of a supply and demand issue at the minute with used, so they’re commanding a premium and selling very well.

Everything will go auto eventually.

Comhrá · 14-12-2019 6:59pm

tomwaits48 wrote: »

Cool, it’s my third car bought from this particular sales rep so hope he is looking after me.

question about automatics though, do they hold their value?

I did a deal trading my 2016 Automatic 1.4 petrol A4 recently and I was pleasantly surprised at the residuals.

micks_address · 14-12-2019 8:22pm

L-M wrote: »

Yeah, I had a 1.5 for 6 months and back in a 2.0 TDI and I can’t say I notice much of a difference. I do a real mix of driving, rarely motorway. About 15k kms done in each.

How did you find the petrol versus the TDI driving in general.. I'm going the other way... Imagine it will be smoother and quieter?

L-M · 14-12-2019 9:35pm

micks_address wrote: »

How did you find the petrol versus the TDI driving in general.. I'm going the other way... Imagine it will be smoother and quieter?

Ah ya there’s no comparison. Breath of fresh air to be honest, it was my first petrol in awhile.

Lovely smooth rev range, loads of power. You’ll be delighted with it in the DSG. Has to be one of the best combinations on the road at the moment.

hooch-85 · 17-12-2019 11:31am

ShadowHearth wrote: »

They got pics up, blue estate. Looks nice.
I still can't get my head around on how much little price dropped after 3 years. Demand I guess...

A bit mad for 27k eu, when I know my local seat dealer, where I got my baby Cupra has 192 demo for 35k eu.

I presume they really low balled you on trade in.

Sorry just getting back to this, what they offered me would put me in negative equity by 2k:eek:. I know the diesels are taking a hit but i didn't think it was by that much. I know the other dealer, we bought my wife's car there and when we inquired about a Leon ST there were offered a much better trade in on the Ibiza than Pierses were willing to do.

asteroids over berlin · 22-12-2019 1:16am

tomwaits48 wrote: »

Tiguan Highline 1.5 tsi dsg

€39,200.00

Part exchange

€25,500.00

Deposit

€500.00

Where was this from? I was quoted 41k for base highline, thanks

L-M · 22-12-2019 11:06am

asteroids over berlin wrote: »

Where was this from? I was quoted 41k for base highline, thanks

His/her figures are discounted back. Usually done after the fact but some garages do it up front.

They are 41k.

asteroids over berlin · 22-12-2019 10:15pm

L-M wrote: »

His/her figures are discounted back. Usually done after the fact but some garages do it up front.

They are 41k.

What do you mean by discounted back and after the fact? Thanks

L-M · 22-12-2019 10:24pm

asteroids over berlin wrote: »

What do you mean by discounted back and after the fact? Thanks

It’s hard to explain, but dealers have to discount the new car and the used car when selling/invoicing them for VAT reasons.

The above figures are discounted back when the customer got the quote.

mickdw · 22-12-2019 10:47pm

asteroids over berlin wrote: »

What do you mean by discounted back and after the fact? Thanks

They have say 2k built in to retail price to help with trade in pricing etc so if they offer 15k against a 30k retail car, they are really offering 13k against a 28k car.
Accounting will be done on the real figures.

asteroids over berlin · 23-12-2019 1:07am

thanks to you both

beggars_bush · 20-03-2020 12:07am

This is going to be an interesting thread soon

Abba987 · 20-03-2020 12:09am

beggars_bush wrote: »

This is going to be an interesting thread soon

Just thinking about this today. I was thinking of signing up. But now... so if you miss a payment is the car taken back? What about your deposit?

How did PCP work out in the end?

Comments