Due to recent change of heart and desire for something for the weekend my Octy vRS is going.

For work and general running about i want something thats cheap to run and worry free, start to look at PCP deals on new cars.

Sent ages in Skoda yesterday and come to a very good deal, they even offered to PX my work shed for the deposit. Im a little apprehensive as ive never had a finance car before, always bought out right so if it turns out i dont like the car i sell on and obviously all the other pro's of owning the car out right.

What do you lot think of finance deals? Im not doing it to save money, if i wanted to do that id buy a car outright for a couple of grand but im sick break downs and all the other costs that come with 2nd hand cars.

It's a very personal question Emma and different options suit different ways of thinking and budgets.

For example, I am known not to be a fan of PCP deals/

Because (in my view) you pay the deposit, make the payments and at the end of it have nothing other than maybe some deposit towards another deal.

Effectively you are paying for the depreciation on a new car, then handing it back and possibly starting again.

The biggest cost on a new car is depreciation. You end up paying this over and over again, PLUS charges.

Again personally, I prefer HP. Because you are building up capital in the car which has it's benefits later. Plus as you are working away at the capital the finance charges are smaller.

Although obviously there is a lot to be said for buying what you want, because you are not committed to paying anyone anything so there is no question of affordability or being tied into any deal. Although it often means you don't have the ability to have a new car on the drive rapidly losing money.

What car are you looking at?

If it's not something with daft nearly new resale values (like a Yeti) you could probably get a smaller loan and buy something one or two years old for a sensible figure, miss the PCP trap out and own it after a while.

Which would give you a decent deposit for the next car if you change in three or four years.

We have a PCP, it is over 42 months and we pay a set amount every month, we also traded a shed in as our deposit.

I have no issue with the PCP set up. we also opted for a very low annual mileage, this is because we will keep the car at the end, so no mileage penalty, we could also trade in with no penalty, the penalty only applies when you want to hand the keys back and walk away.

So the down side, only thing I can see is the final payment, if you choose to keep it, or you avoid the final payment and chop it in for another new car for another three'ish years, simple affordable new car motoring, almost like renting the car, added bonus, no MOT for three years, just insure, tax and go, if you have three year servicing too.

Good luck.

I did originally go looking at the Citigo but the sales man told me for less per month i can have the Fabia 1.2 69PS (with this 25% off deal) and its better equipped blah blah. The only way i see PCP doable is when its on the cheapest car possible, like Boss mentioned, not a Yeti ect

Two reasons behind it, i want to sell the Octy, put the money to one side and let it build up slowly and in a year or two by something completely impractical and for the weekends. The PCP allows me to put all the sale money to one side, not have to dive into it for another daily car (say spend £2k on a tidy Ibiza or something)

Also its worry free motoring, servicing inlcuded, no MOT's, it breaks down then Skoda sort it, new car so less likely to break down ect

Unlike alot of people if i dont have a working car i cant earn money, its not a case of finding transport to one place of work then getting back at home time im a home call care worker, so i go from place to place all day, car breaks down and if i owned it outright with no warranty ect its getting it back on the road as quicly as possible and also obviously paying for the repairs.

One small bonus though, the only running cost other then fuel, the insurance is damn cheap aswell.

For work i currently run a 13yr old 306 1.4..it drinks fuel like its going out of fashion, hellishly unreliable, cost more then double its value to insure and its obviously not as nice as owning a nice new car.

Sounds like you know what you want already, I also believe you have two good opinions for and against above, however there is a third!

If you know what your mileage is per year, you could just lease, we lease all our company cars, this includes, tyres, servicing and road tax, all you do is add fuel and insurance, every three years choose another, also if you are self employed you can claim the vat back.

Call John Crombie at IVL, he will be able to pass you a quote back, we considered this for the Fabia VRS and the 36 month lease was the same monthly payment as the PCP we took out, only reason we went with the PCP is because we are keeping the car.

He will also quote for Lease Purchase where you have the option to buy.

IVL Leasing

I have PM'ed you thank you

My partner would rather me buy a 2-3 grand all rounder, good enough for a daily, cheap to run, young enough to be hopefully reliable. I do see his point and this is the only thing holding me back, i have always bought cars outright as then i can do what i please with them.

The mileage is the one problem with PCP theres been years when i have racked up 29k a year but this was when i was driving out of town for work but on the same hand 3 years contact is a long time, things might change and i dont want to have to pay more incase i take a job that is an extra 10 mile per day that could possibly end up doing a couple of thousand extra miles per year

Mileage is only an issue if you want to hand the car back and walk away as the guaranteed figure will be different. If you keep or trade the car in the mileage carries no penalty, you will be offered the trade in with the current mileage on or if you keep it your final payment remains the same.

Just bare in mind it limits your options.

If you keep the car, you have to pay the balance outstanding. Which if you've opted for a low milage plan and gone over it may mean little or no equity in the vehicle, so if you don't have the cash you may have to take out a loan/HP to keep paying for the car. In other words you could spend 6+ years paying for it. (and the interest)

If you have to trade it in with the same dealer, they are not going to go out of thier way to do you an amazing deal on a new car IMO as you have little choice.

This is the PCP trap, where you get a new car every three years and pay for all that depreciation (and finance charges) before handing it back and starting again.

With regard to the Citigo or 25% off basic old engined Fabia... Citigo all day long. Bare in mind it's far more modern and 300+ kg lighter.

You can get money off a new Citigo too. Not as much, but worthwhile. PM me if you get stuck.

I would go with the Citigo too

I had a 1.2 Fabia as a loan car when my Vrs went in for some warranty work, not fun to drive.

when I had my Golf, I had a VW Up as a loan car. It was fun round town as I would imagine is the Citigo

As for PCP, probably most of the new cars on the road are bought like this. My last car was bought on PCP, I managed to pay it off before I reached the 3 year period.

I've been having this same dilemma with pcp, swmbo wants a new car but personally I'm not all that happy about paying a huge deposit then all those monthly payments then at the end it's thank you very much we'll have your car back now see you later.... As boss fox has said above, effectively you are paying the depreciation for a new car and getting nothing in return, it highlights the major flaw in the motor manufacturing business that they simply aren't worth the screen price when they are new... I'd rather drive round in a £300 shed myself because then I don't care where I park it or wether it's there when I come back or not but for swmbo I think we a better off getting a loan from the bank then buying the car outright and squeezing the scrawny little turd in the dealership for a good deal for cash.

Well like i mentioned the buy car outright is all very well and good but if it breaks down then i cant get to work, not just a simple case of driving to the office.

Ive had a few Fabia loan cars and yes they are rather dull but thats the whole idea. It still needs to practical so a Citigo would be ok but not ideal where as the Fabia would be better all rounder. The car itself it alot nicer to drive then the Citigo (sound deadening, build quality ect) not to mention its around £15 a month cheaper.

Im going back to Skoda tomorrow to discuss this guaranteed future value riddle and think a bit more about it

Hi EJ.

Another thread along the same lines, might be of interest to you.

http://www.briskoda.net/forums/topic/270061-finance/

Ive had a few Fabia loan cars and yes they are rather dull but thats the whole idea. It still needs to practical so a Citigo would be ok but not ideal where as the Fabia would be better all rounder. The car itself it alot nicer to drive then the Citigo (sound deadening, build quality ect) not to mention its around £15 a month cheaper.

Are you talking about the 69PS Fabia they are selling with 25% off?

Because the Citigo I had was better to drive than any of the Fabias I had. Other than the sound deadening you mention.

The Fabia feels more solid. But that's just because it's a lot heavier... and not much more powerful.

Hence it's slower and uses more fuel, which in my opinion means saving £15 per month on payments would be counter productive.

Don't forget for a few hundred pounds more you can get a 5 year (or) 100,000 mile warranty.

Well worth it if you are going to use the car quite a bit.

Right complete change of car..now getting a Hyundai i10..

A damn sight less per month then any car ive viewed, more powerful (4 pot 1.2) still achieves 50mpg, bigger then Citigo, 5 year warranty instead of 3, and the one ive been offered is one off top spec so very nice car indeed.

watch the servicing charges, I hear Hyundai are expensive on servicing but offer good warranty.

You know you need a Fabia II vRS............

Service plan is £30 more then Skoda's

No i dont want something that i will worry about where i leave it or taking too much care over. Like my 306 and Octy, the 306 i will start driving from the second i turn the key, not care where or how i park it and not worry too much about the road condition. Octavia is the complete opposite and the Fabia vRS would be the same, i dont like abusing a nice car. The i10 is nice but its not special