So, ideally then you want to set up a PCP with the smallest deopsit possible and the highest final payment, right?

 

Then, be disciplined and save the extra yourself over the 3 years, gain interest on YOUR money over that time, and then you have more flexibility at the end to pay up, trade it in, or walk away entirely.

 

Am I right here?  I've never bought a car using PCP, but at 0% with 3 years free servicing, it makes no sense NOT to as far as I see it.

 

Yes.

Deposit/payment balance is not the end of the world, it's the GFV that's the kicker.

If they are over estimating they are going to be left out of pocket, not you.

Effectively (in my opinion, of course) you are just paying the depreciation with no interest and if the car is worth less than the inflated GFV at the end you've actually paid less than it's depreciated.

 

As I've said before, I'm not a fan of PCP deals at all.

Mainly because you pay interest on the GFV for the whole term of the deal so it's not good value for money.  Finance charges are high.

 

But the combination of 0% finance and the high GFV seems almost too good to be true if you are looking to drive a car like this.

I notice that most GFV figures are based on 10k a year mileage.  Does anyone have experience of how much this alters if you up that to 15k?

A very instructive discussion on car finance on the VRS topic. Interesting nonetheless...

In my eyes, the green would be more suited to such a big car, more so than this crazy yellow (if you must have a crazy color). :P

I notice that most GFV figures are based on 10k a year mileage.  Does anyone have experience of how much this alters if you up that to 15k?

 

I've also wondered if declaring extra mileage up front changes the deal. Maybe if it wasn't 0%, they'd up the interest a little(?) I've seen Skoda PCP T&Cs state the pence per mile you'll pay at the end of the contract over and above the limit, was it 6p/mile, 90/mile(?) Sort of suggests it's not a problem. On those numbers it would be an additional £300-£450.

In my eyes, the green would be more suited to such a big car, more so than this crazy yellow (if you must have a crazy color). :p

 

That's the exact debate I'm having with myself right now.  Green, or yellow.

 

 

Yellow, anthracite wheels, no question.   Looks artificially low on the configurator too.

Yellow, anthracite wheels, no question.   Looks artificially low on the configurator too.

 

Why can't the price :(

Yellow, anthracite wheels, no question.   Looks artificially low on the configurator too.

 

Few dead bodies in the boot ;-) Only a lunatic would have a yellow or green one. They look like jelly moulds.

Few dead bodies in the boot ;-) Only a lunatic would have a yellow or green one. They look like jelly moulds.

 

I bloody love jelly. 

Yes.

Deposit/payment balance is not the end of the world, it's the GFV that's the kicker.

If they are over estimating they are going to be left out of pocket, not you.

Effectively (in my opinion, of course) you are just paying the depreciation with no interest and if the car is worth less than the inflated GFV at the end you've actually paid less than it's depreciated.

 

As I've said before, I'm not a fan of PCP deals at all.

Mainly because you pay interest on the GFV for the whole term of the deal so it's not good value for money.  Finance charges are high.

 

But the combination of 0% finance and the high GFV seems almost too good to be true if you are looking to drive a car like this.

 

Not sure I completely agree with this, although I understand exactly where you're coming from. The 0% of this deal does change things somewhat when it comes to how to 'play' the pcp deals though.

 

You're right that the way to make up for Skoda overestimating the GFV is to put some money aside yourself each month and even earn the interest, but in reality I can't see everybody doing that and there are potentially still going to be problems at the end of the term for some.

 

I guess it all depends on what people expect to do at the end of the PCP term. If they want to use this deal to just rent the car and then hand the keys back, it's brilliant. If they want to rent it for three years and then finalise the purchase through cash or private finance, again it's brilliant. If they want to part ex it in at the end for a new car, then people need to be sure they realise that there may be very little equity left in the car at the end of them term. We don't know for certain if that's true, but comparing the % residual they've set here to other brands would suggest Skoda are being rather hopeful, so it looks fairly definite in my opinion.

 

Personally I would have preferred them to estimate a more realistic GFV to try to minimise nasty surprises at the end for some people. You've a good understanding of the ins and outs of the deal, as have I and I expect a fair few others. However, I'm sure there will be salesmen out there telling people how pcp deals are designed to leave you with equity in the car at the end of the three years and potentially giving people false expectations on this one. I agree that the best advice is to not assume that you will have any equity left in the car at the end and take steps to cover that eventuality.

Hey, I really don't mind seeing crazy colors on the street. It brightens up the otherwise dull color schemes you normally see. I just wouldn't want them on my car!

I've also wondered if declaring extra mileage up front changes the deal. Maybe if it wasn't 0%, they'd up the interest a little(?) I've seen Skoda PCP T&Cs state the pence per mile you'll pay at the end of the contract over and above the limit, was it 6p/mile, 90/mile(?) Sort of suggests it's not a problem. On those numbers it would be an additional £300-£450.

 

Again, it depends how low they've set the GFV figure. If the manufacturer has set the standard GFV for 10k a year at a level which is going to let the dealer offer you GFV plus a couple of grand and you go and do an extra 3k miles, you should find that they are still making you an offer for the the car as part ex which is in excess of your GFV. In that scenario the excess mileage isn't an issue. If the GFV has been overestimated in the first place and you come back with extra mileage and you want to part ex, you could find yourself with zero or even negative equity in the car ( in the sense that I assume they would apply the mileage excess charge in this case). Ultimately, if you think you might do excess mileage, you need to hope that the manufacturer has been conservative in their GFV estimate.

 

Remember, if you're intending to just hand the keys back (a pretty rare event in a PCP deal I would have thought) then they will simply charge you the excess mileage charge.

 

Best advice is to do the maths yourself, i.e check how the the gfv figures change for 10/11/12k etc per annum and compare it to the excess mileage charge. I looked at it recently on VW pcp deals and thought it probably wasn't worth worrying about if you're only taking a couple of thousand miles over as they only technically charge £70 per £1000 miles and their GFV looked as though they were set at a sensible level.

Yellow, anthracite wheels, no question.   Looks artificially low on the configurator too.

 

That is massively unrealistically low isn't it!?!?!?! Looks like the tyres would rub the arches!

Can you provide a link please.

 

 

Just to confirm that Drive the Deal are offering £2708.47 of a standard petrol manual vrs hatch this morning. If my maths are right, that's 11.7% off the list price. DTD price is £20,218.52

Edited 17 July, 201312 yr by sotonjoe

sounds good but they usually take it off trade in price :(

Does the VRS have any bluetooth as standard? Seen a bluetooth+ option in the configuration but can't see anything about bluetooth is the standard spec list.

 

Also, shocked that adaptive cruise is a £750 option when it's standard on the Golf GTI. I think they should have at least included the standard cruise for free to be honest.

 

Perhaps the maxidot should have been standard too (again you get it on the Golf).

 

I think I'd take the standard spec plus black pack, standard cruise and the maxi dot. I would consider the canton stereo as well. Oh, and I'd like a FOC black exterior paint option really too. Without that I'd probably go for red with black pack.

sounds good but they usually take it off trade in price :(

 

 

Who? Drive the Deal? Yeh, I've heard from some that their dealers don't want to know when it comes to trade in. I guess they see it as an unnecessary hassle. They think they're selling a car to you at their lowest possible margin and so they want to do it with minimal fuss. Adding trade in negotiations and then selling the car on all adds time which they don't want to deal when they're selling at rock bottom price.

Also, shocked that adaptive cruise is a £750 option when it's standard on the Golf GTI. I think they should have at least included the standard cruise for free to be honest.

 

Lets start with just including normal cruise control, that would be one less step backwards let along a step forwards to Adaptive cruise control

Lets start with just including normal cruise control, that would be one less step backwards let along a step forwards to Adaptive cruise control

 

Exactly. Standard cruise should have been free and the posh one no more than a £500 option.

im considering the Golf or the octy but although the golf works out similar final price the monthly payments are much hight due to the finance apr etc

If that 11.7% discount is widely available, it will make the car very cheap to drive over that 36month pcp period though. If they set the petrol GFV at 12k, you'd only be borrowing £8.2k minus deposit over 36 months. Could put in £2.1k deposit, borrow £6.1k and be paying approx £170 per month, unless my maths is mental. And you get free servicing don't you? That's silly money.

im considering the Golf or the octy but although the golf works out similar final price the monthly payments are much hight due to the finance apr etc

 

Yeh, I nearly went for a GTI but bottled it due to the interest. Had a good deal of nearly 11% discount from local main dealer and a good trade in, but the 6.3% apr meant I'd be paying over £2000 in interest over the term, in the hope of having £1500- £2000 equity at the end of the term. The monthly payments were ok at £265 but I would have been putting in £4k deposit. My plan was to privately fund a Mk6 GTI for just under £14k instead, although the new VRS monthly rental figures have me wondering.

 

Prob is, I WANT a GTI.

If you want a GTi go for it otherwise no matter how good the vRS is you will always be thinking "What if I went for the GTi"