Quick question about the Skoda Solutions PCP thingy.

If the future value is set at say £7k, am I right in presuming that is the price if:

a)you want to buy the car outright (hand over £7k, you now own the car and can do what you want with it)

or

b)is what the dealer will have to offer you as the part ex value should you want another Skoda from them?

Presume if is correct, then in the current climate they won't be happy offering you what may well be well over book price and they will then reflect this is giving didly squat off a new vehicle to try and make up the difference (the all important "cost to change" figure)?

7K is what you would have to pay at the end of the agreement to buy the car outright.

OR

just give the car back to the dealer at the end of the agreement and owe nothing, assuming you have not exceeded the mileage limit. The 7K is not a P/ex figure, its a figure that they estimated the cars value to be at the end of term at a given mileage. If you have exceeded the agreement mileage then a fee is paid in addition to handing the car back.

When you are at the end of the term you can.

a) pay the £7k and keep the car.

hand the car back to Skoda Finance.

c) part exchange your car and the very minimum we can offer is £7,000 if the car is worth more and you have equity in the car you can use that to fund a deposit on another new car.

Cheers guys. Guess it wont be worth any more than the £7k then. Still got 18 months to go though so no doubt the market will pick up by then.

Hang on, low flying pig coming over....

Always a worry with one of these schemes is that you end up with no equity at all on the car and therefore no deposit to put towards a new car. So , you either hand the car back and walk everywhere for a while or refinance the balance - tying you into the same car for years. It maybe ok if you earn enough to save money while paying the monthly PCP payments , no chance of that in my job though! Are the minimum guaranteed values on these schemes generally pessamistic or not? I have toyed with the idea of a new car via these schemes but I still have reservations.

Always a worry with one of these schemes is that you end up with no equity at all on the car and therefore no deposit to put towards a new car. So , you either hand the car back and walk everywhere for a while or refinance the balance - tying you into the same car for years. It maybe ok if you earn enough to save money while paying the monthly PCP payments , no chance of that in my job though! Are the minimum guaranteed values on these schemes generally pessamistic or not? I have toyed with the idea of a new car via these schemes but I still have reservations.

I'm pretty sure that my GFV is higher than the final payment (without finding the paperwork to check exactly).

Yeah? thats not too bad then. I know its dependent on condition and milage , and I'm lucky if I do 5000 miles a year so my car would (I hope) always be worth more than the minimum.

9 times out of 10 the part exchange is worth more than the final payment.

9 times out of 10 the part exchange is worth more than the final payment.

Ok cheers , something to think about then.

9 times out of 10 the part exchange is worth more than the final payment.

I'll be over your way then in 18 months