Yeti offers?

[EikokuSanzoku]

Afternoon Yeti owners.

 

I'm a Citigo owner, who's PCP deal will finish in September/October.... I've a ranging top SE Elegance Green Tech with a few extras..... costing £165pcm (15k pa)

 

Saw this deal on Simpson's:

http://www.simpsonsskoda.co.uk/new-car-offers/yeti-laurin-klement-tsi/

 

YETI OUTDOOR 1.4TSI 150PS 4X4 LAURIN & KLEMENT

On Personal Contract Hire, for 2 years, £2250 upfront, 23 months at £139 pcm, 8k pa.   Equivalent to £239pcm (if I do 10k)

 

 

 

If I use the Skoda Calculator to spec up the same car....

http://www.skoda.co.uk/tools/finance-calculator/default/

 

On Personal Contract Plan, for 2 years, £2250 upfront, 23 months at £358 pcm, 10k pa.   Equivalent to £437pcm (if I do 10k)

 

 

AM I MISSING SOMETHING HERE?

 

£70pcm to trade up from a Citigo to a Outdoor Yeti L+K

 

 

As I understand it with PCP, there's a final balloon payment or you can walk away, just like a PCH....

 

 

 

 

 

 

 

For £200 

SKODA YETI 1.2TSI SE 110PS

 

 

 

[SurreyJohn]

There seems to be good Yeti offers around at the moment, I have just done one in June (so awaiting car in Sept), PCH over 2 years, worked out at average of £185 per month including deposit and VAT for SE model 1.2 tsi DSG with couple of extras

Try looking at Contract Hire And Leasing .com, some good offers around, some are cheaper than Fabia.

The deal I got isn't there now, but there are Yeti Outdoor SE diesels for £1323 + 23*£127 = £4248 or £177 per month average

I assume the Yeti residuals are better, or is being discounted to lease Companies as due to be replaced in a years time.

Edited 8 July, 2016 by SurreyJohn

[Spaldi01]

The best deals seem to be leasing Yetis and Superbs at the moment. You will probably be able to beat that Simpson deal if you shop around. Simpsons don't deliver which is difficult if you don't live near them. Although they are meant to be a great dealer. It will be a lot more car than the citigo, I'd go for it. At the moment I think PCP is risky with a yeti because it will probably be replaced when you are looking to change so it's residual will be hit.

Sent from my ONE A2003 using Tapatalk

[silver1011]

The deals on the Yeti right now are as good as they get.

 

PCH is far, far better than buying or PCP right now.

 

We were about to sign up to a Yeti but a great deal on the Octavia Scout came along so we took this for £200 all-in a month...

 

There are some great deals on right now on the Seat Leon X-Perience 4x4 too.

 

[Nick P]

Wow, the L&K deal is ridiculous now - £400 cheaper over the 2 years than the £2190 + 23 x £159 I just signed up for (although that was a 10k / annum deal).

 

Just do it. We got our black L&K 1.4 from Simpsons this week and it's awesome. A really good upgrade from our 14 plate Elegance.

Edited 9 July, 2016 by Nick P

[SurreyJohn]

I have been told that the reason the 2 year PCH deals are currently so good compared to PCP is that they allow certainty that some 2 year old cars will be available for dealers to have used stock (apparently the glut of PCP deals in last couple of years, means some dealers are struggling to get used cars between 1 and 3 years old), There is also assumed to be a repeat new sale 2 years later, which keeps production line going. (Although It ignores fact that customer could change brands). Assuming the 2 year old car goes back to dealers, they also have the chance to profit from a sale that they missed at new stage, so everyone makes from the deal.

The PCP price is having to factor in a lot of uncertainty about residual values, not easy when UK is buying 50,000 new cars per week, so could be susceptible to economic shocks resulting in glut of models handed back rather than balance paid. Something like 70% of new private purchases are PCP so changing the buy vs exchange ratio at end of PCP can change the number hitting used market by tens of thousand per month which affects value to to supply and demand.

The reality is that whilst you can get decent spec car for under £200 per month on PCH, which is new every 2 years, why would anyone spend nearer £300 per month on PCP

[logiclee]

We have just collected the first of two vehicles from Simpsons.

I usually buy new but after just loosing £16k on the Passat and £14k on a BMW in depreciation the PCH deals are great value.

Some pepole are worried about the distance but we did everything over the phone and by email. On the day of collection just £35 and a few hours on the train.

Simpons collected me from the train station and within an hour I was driving home.

Just treat it as a day out and a drive in the new car.

Servicing can be done at your local dealer and it's collected from you at the end of the term.

At the end of the two years you can discuss a 6 or 12 month extension with Skoda and you can ask for a purchase price. Skoda will not sell the vehicle to the lease holder but may sell to a famiky member.

Lee

[TR7Driver]

This is clearly a good deal, wish I had now considered PCH rather than PCP for my second Yeti, would be interesting to see what threads are on this forum in a couple of years when cars are handed back and the discussions on the car meeting BVRLA's standard for fair ware and tear are had with the dealer.

[logiclee]

This is clearly a good deal, wish I had now considered PCH rather than PCP for my second Yeti, would be interesting to see what threads are on this forum in a couple of years when cars are handed back and the discussions on the car meeting BVRLA's standard for fair ware and tear are had with the dealer.

 

The same guidelines are used to return PCP or PCH vehicles.

 

To be honest I've never had an issue but I do look after my cars and don't use them to take concrete slabs to the tip etc.

Some smart repair centres offer a PCH/PCP hand back service, so they will do any scratches, dings or repairs to pass an inspection for minimal cost prior to collection.

It's much cheaper paying for a few smart repairs than handing the car back with scrapes, dings and wheel scuffs.

 

Lee

[Splooter]

We were about to sign up to a Yeti but a great deal on the Octavia Scout came along so we took this for £200 all-in a month...

 

Where was this from ?, and is it still available ? (I see that Simpsons are £199 per month but with a £2190 deposit)

[Expatman]

So how are these deals compared with buying outright if you intend to keep the car for 5-6 years? I can see that the monthly payments are low for the period of the "lease" but what happens then and how can it work out cheaper than buying and keeping for 5-6 years? Or am I missing something?

[Citigopher]

The PCH prices are on the way up, albeit slowly. Partly due to the £ weakening against the Euro, partly because VAG's panic over dieselgate is gradually abating? I paid Simpsons £1,990 + (23 x £124) for my Yeti 1.4 L&K in September last year (8k miles p.a.). Just after I ordered, they were for a short period offering the 1.2TSi SEL DSG for £1,990 + (23 x £89), which was a fantastic deal. That's the equivalent of renting a new Yeti for £5.53 per day.

 

When I hear all the PCH ofers for small hatches being advertised on the radio at the moment, it makes me realise what a great deal the Yeti (still) is.

 

As for the 5-6 year ownership proposition, do the sums. Work out the initial PCP deal, then the cost of financing the balloon payment, servicing, MOT's, breakdown cover, tyres, brakes etc over the remainder of the 6 years. Then compare that to the cost of 3x 2 year PCH contracts, end-to-end. Fair enough, you'll have the asset of a car at the end of the 6 years if going the PCP route, but I suspect you'll have paid a lot more to gain that asset in the intervening years. The £200 difference in monthly payments mentioned by the OP is £2,400 per year; x6 is £14,400 - way more than a 6 year old Yeti is going to be worth, even if your monthlies drop after the PCP deal ends (which they may not do, as the MGFV's being quoted by Skoda are quite high, so you'll still have a lot to finance by way of a personal loan).

 

You'd also only have had one new car in that time, compared to three if going the PCP route, which may be of significance to some folks.

Edited 16 July, 2016 by Citigopher

[SurreyJohn]

So how are these deals compared with buying outright if you intend to keep the car for 5-6 years? I can see that the monthly payments are low for the period of the "lease" but what happens then and how can it work out cheaper than buying and keeping for 5-6 years? Or am I missing something?

If you go PCH three 2 year deals, you will only ever pay a minor service on each car (unless you are doing massive mileage). Shouldn't have any major service, MOT or repair bills. No warranty cost, car tax or breakdown cover as that will be included. So about £1000 saving

Will depend on your mileage but over life of a 6 year car, bound to have to replace some parts, cam belts, tyres etc so say another £1000

So your comparison is basically difference between what you pay out, add 2 X £1k less the (paid for) residual value that you would have if you own it, but won't have if you PCH it (exclude and residual value that is still financed, which might happen if you take a loan to pay the balloon payment)

[Expatman]

If you go PCH three 2 year deals, you will only ever pay a minor service on each car (unless you are doing massive mileage). Shouldn't have any major service, MOT or repair bills. No warranty cost, car tax or breakdown cover as that will be included. So about £1000 saving

Will depend on your mileage but over life of a 6 year car, bound to have to replace some parts, cam belts, tyres etc so say another £1000

So your comparison is basically difference between what you pay out, add 2 X £1k less the (paid for) residual value that you would have if you own it, but won't have if you PCH it (exclude and residual value that is still financed, which might happen if you take a loan to pay the balloon payment)

Okay, I'm a cynical type so who is making any money out of these deals? If I can get 3 new cars over a 6 year period and still be £'000's better off at the end then someone is funding my benefit - who and why????

[Brijo]

... someone is funding my benefit - who and why????

 

Good question

[Citigopher]

Okay, I'm a cynical type so who is making any money out of these deals? If I can get 3 new cars over a 6 year period and still be £'000's better off at the end then someone is funding my benefit - who and why????

 

If I understand correctly the explanation I was given some while ago, part of the saving is down to the VAT on the full value of the car not being chargeable when the car is hired out (PCH) rather than sold (PCP) as the ownership of the car does not change. VAT is only charged on the rental, which is a considerably lower figure. By the time the car is actually sold on by VWFS, its value has dropped very significantly, so the VAT due is a lot less too. VAT is of no significance (other than as a cashflow buffer) to VWFS as it's taken with one hand and given with the other, but it is very significant to the buying customer.

 

But I wouldn't dwell too long on where the money that apparently disappears into the ether actually goes - it just gets depressing! With a PCP, most of your hard-earned folding is swallowed by depreciation, not being sunk into the car as an asset. The MGFV is a recognition of this. Where does 'depreciation' money actually go? I am a cynic too & I've said many times on here that I hate the idea of not owning things, but in this case I don't need to look the gift horse in the mouth too closely. Skoda offer the deal, I take it. At the end of the deal, shake hands and walk away. End of.

Edited 16 July, 2016 by Citigopher

[SurreyJohn]

Okay, I'm a cynical type so who is making any money out of these deals? If I can get 3 new cars over a 6 year period and still be £'000's better off at the end then someone is funding my benefit - who and why????

It's all to do with finance, the car company borrows at close to zero, then factors in a decent return.

If you take the delivered cost (excluding VAT) it is still lower than the residual value 2 years later (rumoured that cars cost about £10k to make). Dealers probably make more margin if they sell the car at 2 years old rather than new (and will then do a deal where they make on finance, used car finance is nearer 10%) so they make on finance as well.

Basically anyone buying a nearly new car on finance at more than about 1% is generating the profit to subsidise the initial owner, but no one is going to tell you that.

Edited 17 July, 2016 by SurreyJohn

[silver1011]

Where was this from ?, and is it still available ? (I see that Simpsons are £199 per month but with a £2190 deposit)

 

This is quoted from me in this thread...

 

http://www.briskoda.net/forums/topic/389810-skoda-scout-lease-deal/

 

"Well, just done the deal, Skoda (VW Finance) have approved my finance application and the car is secured, being built week 11 (next week).

 

Luckily the car was already allocated a week 11 build date but without a customer. It now has my name next to it   :sun:

 

150bhp, manual, no options. Moon white metallic (free) and the black interior, 8,000 miles per year.

 

£2,548.66 deposit, 23x £100 per month = £4,848.66 over 24 months = £202 per month.

 

I spoke with pretty much every broker out there and all major UK Skoda dealers direct. This was as cheap as I could get it so I'm pretty happy with the deal.

 

After always buying and owning my cars it is time to see what a PCH is really like!

 

I got mine from here (a fronting website for Johnsons VW in Telford). The deal has cerpt up in price now...

 

http://www.parkvehicles.co.uk/skoda-offers

[silver1011]

PCH is a simple way for manufacturers to push cars through the system very fast.

 

They put out deals on cars that they either want rid of (slow production, production line capacity, used car availability, hitting monthly targets, excess stock etc.).

 

This is why the best PCH deals arrive, and then disappear again very quickly. Good PCH deals are not for people that dither.

 

They are nearly always model specific, i.e. great deals on the Yeti, fair deals on other Skoda models.

 

If you are in love with Skoda and won't deviate away to other brands then again you'll end up disappointed eventually.

 

There are good PCH deals across most manufacturers but they aren't easy to find. There are a few leasing comparison websites but they are pretty poor, be prepared to spend hours browsing online. If you enjoy sitting down with a salesman, drinking coffee, perusing options, mulling over the deal for a few weeks then again PCH isn't the best for you.

 

There have been some good deals recently on the VW Golf, VW Passat Alltrack, Citroen Picasso, Jeep Grand Cherokee and more recently the Toyota Avensis.

 

The Yeti is unusual as the deals have been getting steadily better over a period of a few months, Skoda must be keen to shift some numbers.

[dstev2000]

The current deals that Skoda are offering (£1,000 finance deposit, 0% APR and £750 free fuel) does NOT apply to the Yeti Monte Carlo. 

 

I found this out when I tried to order SWMBO a 150 4x4 Monte Carlo on Friday. 

 

Instead, it's an SE-L with various options to keep her happy 

 

I would've ordered an L&K there and then but Skoda's obsession with the bloody brown interior nixed that one straight away. 

 

All things considered, if you push your dealer for a good price, now is a very good time to buy a Yeti. 

[Expatman]

Interesting article in the Sunday Papers that the "lawyers" are looking at PCP and PCH deals because their income form PPP is declining. They are claiming that the true interest rates of PCH and PCP deals have not been explicitly made clear to customers and therefore the customers have an action against whoever sold them the PCP/PCH deal! 

You may have a more benevolent view of lawyers than me but I tend to agree with Shakespeare about the first action to take!

[domhnall]

Interesting article in the Sunday Papers that the "lawyers" are looking at PCP and PCH deals because their income form PPP is declining. They are claiming that the true interest rates of PCH and PCP deals have not been explicitly made clear to customers and therefore the customers have an action against whoever sold them the PCP/PCH deal!

You may have a more benevolent view of lawyers than me but I tend to agree with Shakespeare about the first action to take!

Not all lawyers are looking at this

[Expatman]

Not all lawyers are looking at this

I am sure that is true. I was concerned about who was paying for me to get a good deal, I think I have answered that because it seems to hinge about relative interest rate differences. A quick calculation assuming a buyer has ready free cash available (probably earning a pitiful interest rate!) then the sums would favour purchasing. If the purchase requires any form of borrowing then the sums favour PCP's.

Of course there is also the 'less hassle and new model every 2-3 years' factor which will sway many people, it just costs that's all!

[logiclee]

I am sure that is true. I was concerned about who was paying for me to get a good deal, I think I have answered that because it seems to hinge about relative interest rate differences. A quick calculation assuming a buyer has ready free cash available (probably earning a pitiful interest rate!) then the sums would favour purchasing. If the purchase requires any form of borrowing then the sums favour PCP's.

Of course there is also the 'less hassle and new model every 2-3 years' factor which will sway many people, it just costs that's all!

 

There's more to it than good interest rates though, especially with PCH.

 

I have the money in the bank to buy a Yeti cash. Our model with the spec is around £21k list so perhaps around £18k with discount. After 3 years projected retained value is 42% of list price so around £8500 in 3 years. So add in 3 years road tax and I'd be looking at a £10k loss in depreciation.

PCH deal at £2190 deposit and £99 a month is £4467 for two years or £5655 if I extend to three.

 

PCH is saves me at least £4000 over three years.

 

I'd have to be mad to buy cash, money is still better put into property.

 

Lee

Edited 20 July, 2016 by logiclee

[Expatman]

There's more to it than good interest rates though, especially with PCH.

 

I have the money in the bank to buy a Yeti cash. Our model with the spec is around £21k list so perhaps around £18k with discount. After 3 years projected retained value is 42% of list price so around £8500 in 3 years. So add in 3 years road tax and I'd be looking at a £10k loss in depreciation.

PCH deal at £2190 deposit and £99 a month is £4467 for two years or £5655 if I extend to three.

 

PCH is saves me at least £4000 over three years.

 

I'd have to be mad to buy cash, money is still better put into property.

 

Lee

Agreed, comes back to my original question - who is making money on the deal? PCH saves you £4000, someone has to fund that - who and why?