Is this a good pcp deal?

[bushypad]

So i went into vw few days ago looking for a scirocco 2.0 tdi.
Came across a 2011 plate 22k miles has all the extras i wanted.

Im new to this pcp so wanted your opinions.
Details are as follows

Term: 45 months
Monthly payment: £264
Baloon: £5645
Current value of car :15,983
Deposit: 2250
Invoice total: 16,013
Now he told me the flat rate interest was 5% which sounds appealing but looking over it he hasn't told me the apr? Will call them back tomorrow as its closed today.. Can anyone shed some wisdom on if this sounds good? Like i said im a noob when it comes to finance 

[aarondsg]

I worked out depending how they plan it you will end up paying a little over £19k

[bushypad]

19k?
How did you work it out if you dont mind me asking?

[Baz300]

45x £264 = £11880
+ £2250 deposit = £14130

But if you want to keep the car add £5645 balloon payment
Total = £19775


Also watch the mileage as you might be charged more if you do more than what's in the agreement


 Are you planning to keep the car at the end of the 4 years? If not would you not be better off leasing a brand new one for 2-3 years?

[bushypad]

Ah ok that makes sense

Yeah not planning on keeping it the full term in fact probably will give it back after 3years..

[Baz300]

Do you know you won't get any money back for the car at the end of the term?

[bushypad]

I always assumed the guaranteed future value they give was quite low in order to entice younto use the extra equity in money for a deposit on the next car. Or is this just a selling ploy?

[aarondsg]

sorry was typing on my phone hence why I didn't break my calculation down .
just wanted to give you a rough idea

[Baz300]

Would all depend on the trade in value of the car at the time not the retail price.

Personally I would get a personal loan, you will pay more per month but your free to sell the car at any point and pay off the loan without hassle.

[Beddie]

Working out apr from a given flat rate is pretty tough from a maths point if view but as a rule of thumb you'll be looking at an APR of around 11% from a flat rate of 5%...
I'll be honest and say depending on the pcp mileage on your deal (could be the standard 'in' point of 5K per annum) and the high APR and long term for a 2011 car is that the dealer is definitely not doing you any favours on this deal imo

[bushypad]

Working out apr from a given flat rate is pretty tough from a maths point if view but as a rule of thumb you'll be looking at an APR of around 11% from a flat rate of 5%...
I'll be honest and say depending on the pcp mileage on your deal (could be the standard 'in' point of 5K per annum) and the high APR and long term for a 2011 car is that the dealer is definitely not doing you any favours on this deal imo

It was based on 8k miles per annum

[Beddie]

Working out apr from a given flat rate is pretty tough from a maths point if view but as a rule of thumb you'll be looking at an APR of around 11% from a flat rate of 5%...
I'll be honest and say depending on the pcp mileage on your deal (could be the standard 'in' point of 5K per annum) and the high APR and long term for a 2011 car is that the dealer is definitely not doing you any favours on this deal imo

It was based on 8k miles per annum

Will 8K cover your miles? VWFS usually charge 6p per excess mile so keep that in mind should you intend to hand back..
You could always drop down to 5K to reduce the monthly as long as you plan to px or pay the balloon as the mileage limit on the pcp is irrelevant in that case 

[slider955i]

i would get a personal loan as mentioned

[TomGTI]

I'll been considering a personal loan but for 5 years but I just need to decide whether I can keep a car for 5 years :-/

[Bazgti]

I'll been considering a personal loan but for 5 years but I just need to decide whether I can keep a car for 5 years :-/

Bank/Personal loans are all gleaming and shiney to get your attention. Banks will advertise their best headline rate. However, they only offer that rate to 2/3 of the people that appliying for it. Also if you take out a loan you can sometimes be charged for settling early where as car finance which im aware are a slightly higher interest rate (5's ish flat is usually the best) but youll get rebate of interest if you decide to settle or get rid early. That means you only pay interest up until the time when you settle so you wont have to keep it 5 years. Your usually back in equity by the 3rd year depending on the car's depritiation.