Pcp's

[no golf clubs at all]

Errr nope. £21500 to be accurate financed over 42 months on pcp at something like £404 per month with a final gfv figure around £8k. Did I explain it incorrectly earlier? I'm on my phone right now in pub watching the footy   

(cars at home honest oshifur)

[no golf clubs at all]

Tells you what though if I was doing it I'd go to nationwide rather than Arnold shark after seeing those figures

[tony_danza]

LOL - I was right with the shafted then!!!! Bugger me!!!!!

Get some decent quotes, you'd be looking around 4-5% on the bit you borrow on average - sounds like they've given you QuickQuid.co.uk style scutter rates.

[Beddie]

Errr nope. £21500 to be accurate financed over 42 months on pcp at something like £404 per month with a final gfv figure around £8k. Did I explain it incorrectly earlier? I'm on my phone right now in pub watching the footy   

(cars at home honest oshifur)

Something still sounds a little off though tbh mate?

You mentioned the GTD was £21998 earlier so i'm assuming you got them down to £21500 you mentioned is to be financed?

If so then 42 x £404 = £16968 plus the GFV of £8000 = a total payable of £24968 so an interest charge of £3468...

So based on that the dealer is either very bad at maths or doesnt want a deposit? 

[vRStu]

I've spent a lot of time looking at PCP's and what some third party finance houses call LP's.  I don't profess to understand everything about them and hence my earlier question regarding the size of deposit but as I also said earlier I always base my calculations on what it will cost me over the term and use that as a benchmark for comparison.

[vRStu]

Something still sounds a little off though tbh mate?

You mentioned the GTD was £21998 earlier so i'm assuming you got them down to £21500 you mentioned is to be financed?

If so then 42 x £404 = £16968 plus the GFV of £8000 = a total payable of £24968 so an interest charge of £3468...

So based on that the dealer is either very bad at maths or doesnt want a deposit? 

That's the conclusion I came to, the deposit seems to be about the amount that is questionable.  I would also think they've be working on quite high APR's so probably anything from 10 to 14 depending on how desperate they want your business.

[Beddie]

Heres a quick quotation based on the nearest similar value / type car i could find..

£0 deposit, 42 month term @ £414 with GFV of £8300 and APR of 9.9%

http://www.broker4cars.co.uk/PCP-Payment-Calculator/Car.jsp?selectedBudgetPeriod=42&selectedBudgetMileage=10000&selectedPeriod=42&selectedMileage=10000&selectedDepositPercent=0&minMonthly=300.0&maxMonthly=400.0&selectedManufacturer=VOLKSWAGEN&selectedModel=GOLF+DIESEL+HATCHBACK&selectedVariant=2.0+TDi+140+GT+5dr+DSG

[no golf clubs at all]

right I think this was the deal, yes they reduced the car to 21500 (slow day lol) , wanted £300 deposit. 42 months at £404 plus an option to buy the car at the end of the period for £8700. Ignore anything I said about a trade in of £8000.

Total costs £25,968. (assuming buy the car in month 42) No doubt there is a set up figure somewhere but ignore that.

=£4,468

I can't see the final balloon figures on nationwidevehiclecontracts to compare from here.

Guess my instincts were right all along that's why I'm sticking with my gti for now.


Ps remember this was for a 2009 GTD dsg 5 door with 3000 miles on the clock. 1 owner.

[vRStu]

I think it is probably a lot of cash for a 2 year old car, regardless of the mileage but I think the aim of the replies was to try and allay some fears and misconceptions about PCP's.

[Beddie]

I think it is probably a lot of cash for a 2 year old car, regardless of the mileage but I think the aim of the replies was to try and allay some fears and misconceptions about PCP's.

+1 

[no golf clubs at all]

 

Great guys that's really helped. Thanks to all who contributed.  From this thread I realised that pcps are an option and I can get a new car for what this stealer was trying to punt my way.

Hope in some way it helps others understand the benefits and the pitfalls. 

[ub7rm]

Given there is next to no deposit that doesn't sound too bad then?  Maybe not the most competitive but OK  

LP as far as I can see is just like PCP except that at the end you don't have the option to hand the keys back at the end and walk away.  You have to pay the final baloon one way or another.  So its missing that 'safety net'.

I've also noticed that online brokers tend to pitch the final baloon quite high, making the monthly payments lower but I guess leaves less 'equity' at the end.  Dealer PCP's seem to make the final baloon a bit lower so the monthly's are a bit higher but there is more chance of having more cash into the next car come trade in time this way.  Have i sussed this out right?

[vRStu]

It might not be your thing but I had a quick look and a couple of brand new A3's (Sport/S-Line/Black Edition) with the 170 TDi and S-Tronic could be had for similar money to the GT you mentioned.

http://www.audi.co.uk/new-cars/a3/a3/finance-and-offers.html

A finance example here - http://www.audi.co.uk/new-cars/a3/a3/finance-and-offers/retail-finance-offers.html

[vRStu]

LP as far as I can see is just like PCP except that at the end you don't have the option to hand the keys back at the end and walk away.  You have to pay the final baloon one way or another.  So its missing that 'safety net'.

I've also noticed that online brokers tend to pitch the final baloon quite high, making the monthly payments lower but I guess leaves less 'equity' at the end.  Dealer PCP's seem to make the final baloon a bit lower so the monthly's are a bit higher but there is more chance of having more cash into the next car come trade in time this way.  Have i sussed this out right?

That's the impression I get.  I spoke to several brokers about LP's but didn't get a warm feeling about them.  They were all trying to tell me that manufacturer PCP's are bad but when challenged couldn't give a real world example.

My deal on the new car will give me a £3k deposit contribution plus a favourable interest rate which has the net effect of paying the interest aspect of the deal for me.

[wigit]

I am getting my new Octavia vRS on a PCP. Does that mean i have Champagne Taste but Lemonade Pockets Or am i just sensible because rather than lose the money in a car i keep it in a savings account or use it to make my house better (well the wife makes me do that ) Thus keeping money readily available for any unforseen circumstance.

i think a perfectly sensible approach in the current climate, you may pay a small premium but 'rainy day' funds are handy and accessible

i've bought the 'sh#tty for the city 500' on a pcp as the deal worked out cheaper than going pre reg, in reality fiat gave me £750 off (as good as you get at broadspeed) and an APR rate of 1.3% (which is cheap subsidised money)