let me know how you get on with the gap insurance from elsewhere please?

 

I was at the dealers this morning and I am awaiting quotes on a white vrs state manual.

I have GAP insurance with ALA, return to invoice £125 for 3 years and is transferable if you change car

I have GAP insurance with ALA, return to invoice £125 for 3 years and is transferable if you change car

 

great - thanks for that. initial chat was dealer was looking at £350 for gap!!! I presume that just a simple, if it's a write off, the gap pays the difference between the write off value and the finance outstanding value?

great - thanks for that. initial chat was dealer was looking at £350 for gap!!! I presume that just a simple, if it's a write off, the gap pays the difference between the write off value and the finance outstanding value?

Yes thats correct.

Gap insurnace at the dealer is about 50-70% more than searching on the internet. It is the same as going into currys etc where the salesman can make more on the insurance than on the item he is selling you.

 

with regards to the PCP and balloon, be very careful about this.

 

When the dealer is looking at a part ex price, they are taking into account what they will get if they trade it (dependant on age and mileage) I had negative equity on mine which is why first time round I could not afford the MKIII. I then called VWfinance and found that by terminating the contract (after making sure I had paid 50%) I could get rid of the negative equity, and it ended up bringing my monthly payments down  (by the originally quoted amount ) over £100.00

 

If you dont do that high mileage, even if you are over the PCP amount, it wont make much difference, all you need to do is make sure you get enough to settle the finance, and if you can then mileage is irrelevant.

Gap insurnace at the dealer is about 50-70% more than searching on the internet. It is the same as going into currys etc where the salesman can make more on the insurance than on the item he is selling you.

with regards to the PCP and balloon, be very careful about this.

When the dealer is looking at a part ex price, they are taking into account what they will get if they trade it (dependant on age and mileage) I had negative equity on mine which is why first time round I could not afford the MKIII. I then called VWfinance and found that by terminating the contract (after making sure I had paid 50%) I could get rid of the negative equity, and it ended up bringing my monthly payments down (by the originally quoted amount ) over £100.00

If you dont do that high mileage, even if you are over the PCP amount, it wont make much difference, all you need to do is make sure you get enough to settle the finance, and if you can then mileage is irrelevant.

Did you put a much lower amount of milage than you do like a mate of mine has done, said he'll do 5000miles a year yet done nearer 20,000 so gonna shoot him in foot soon

Did you put a much lower amount of milage than you do like a mate of mine has done, said he'll do 5000miles a year yet done nearer 20,000 so gonna shoot him in foot soon

thats crazy.

i've tried to be realistic with my mileage, was initially going to go with 10k per year but i'm going to go with 12k per year and hope i dont go over that obviously it puts the payments up with more mileage but i was advised to be realstic as i done 80k in my fabia over 6 years so i think 12k is sensible

thats crazy.

i've tried to be realistic with my mileage, was initially going to go with 10k per year but i'm going to go with 12k per year and hope i dont go over that obviously it puts the payments up with more mileage but i was advised to be realstic as i done 80k in my fabia over 6 years so i think 12k is sensible

Yeah i decided your best been honest with yourself as itll only come back to bite you

I wasn't aware of that, i'm currently 21 months into a 36 month PCP and i'm currently 9k miles over where I should be at this point after a change in circunstance since I bought the car.

So if I trade the car in and start a new PCP on a brand new vRS I wont get charged for the excess mileage??

Nope so long as you dont physically ever hand the car back to VWFS (or any finance company) youll never be liable for the excess mileage; but it will of course affect the part ex value so if you have a bit of loan to pay off still and youve done loads of miles you could still find yourself in a negative equity position whereby you either pay off the balance, take it onto new PCP or just keep the car.

The alternative if you are facing negative equity is to voluntarily terminate your agreement. So long as you have paid over half the total value with interest you can literally walk away from the car with no liability, providing you are within yoyr agreed total mileage limit no excess mileage charges either...so say youre at 25k after 2 years on a 3 year 30k agreement you'll not get any charges.

Lots of people do this.

But unless you've done vastly more miles than quoted, a car bought on a PCP should always have a reasonable amount of equity near the end of the term. Just walking away is going to lose you that.

Hi folks

I'm new to all this PCP stuff. I've seen numbers flying about for hatch/estate, diesel/petrol, and manual/DSG but noone's gone into any detail as to whether any optional extras that you add affect the GFV.  I specced my ideal vRS with £2000-odd of extras last night.  Is the GFV worked out with or without these extras?

 

Ta

Statto

Hi folks

I'm new to all this PCP stuff. I've seen numbers flying about for hatch/estate, diesel/petrol, and manual/DSG but noone's gone into any detail as to whether any optional extras that you add affect the GFV. I specced my ideal vRS with £2000-odd of extras last night. Is the GFV worked out with or without these extras?

Ta

Statto

No the GFV would be fixed, extras make no difference to this figure as in reality the car is likely to be worth no more in the trade than a standard car.

Options do help sell a car but financially they are of little use and purely for the gratification of the owner.

No the GFV would be fixed, extras make no difference to this figure as in reality the car is likely to be worth no more in the trade than a standard car.

Options do help sell a car but financially they are of little use and purely for the gratification of the owner.

Thanks, that's what I wanted to know.  I've sent off the spec of the car that i built yesterday to my favoured dealership and am waiting for them to come back to me with the finance details.  Based on what you've said, I might need to scale back my options list!

But unless you've done vastly more miles than quoted, a car bought on a PCP should always have a reasonable amount of equity near the end of the term. Just walking away is going to lose you that.

The point here being that it "should" but wont always. Back in 08 wife and I bought a new Polo 1.4 Match 5 door as a cheap run around for her, nice little car it was too. However towards the end of the 3 year term it became evident that the GFV on the car was way out and we were facing a shortfall of 1800 quid if we part ex'd it. Fortunately the dealer managed to give us what the car owed just before we swapped it for our old Fabia vRS but it was touch and go and we faced either taking the loss into our new agreement or VT'ing it.

The point here being that it "should" but wont always. Back in 08 wife and I bought a new Polo 1.4 Match 5 door as a cheap run around for her, nice little car it was too. However towards the end of the 3 year term it became evident that the GFV on the car was way out and we were facing a shortfall of 1800 quid if we part ex'd it. Fortunately the dealer managed to give us what the car owed just before we swapped it for our old Fabia vRS but it was touch and go and we faced either taking the loss into our new agreement or VT'ing it.

For others benefit (i know you understand all the ins/outs pcpsyp! ;-))

The GFV only comes into existence at term tho. Before then might as well ignore it. It's very useful for preventing a negative equity situation at final term. Protects the customer from neg equity.

At end of contract:

Car worth less than GFV = handback (to finance company not dealer) finance company takes the hit. Owe nothing.

Car worth more than GFV = trade it in with dealer and use equity towards new deposit. Simples.

Before the contract officially ends its the "settlement figure" vs trade in value that is important not the GFV.

quick quote from a dealer I've just been speaking to.

 

vRS white diesel estate manual

 

£2000 down, 36 months on 15k mileage

 

GFV - £10k (seem low to me!)

 

£354 a month.

 

Said i was disappointed with the GFV figure as I'm more looking at £300 a month as my target number. I could extend to 42 months on the deal and it comes in at around £295 a month but likely to trade it before then I guess.

Looking at Booyaka's figures, I would say that until they do another "vat free" offer, its not time to change

0% finance (if its still on) is not anywhere near as enticing as "vat free" to me.

What if that offer never comes?

guess it depends - buying outright - the vat free is the winner, buying on finance the 0% comes in better.

 

Anyway - asked the dealer to go back and see if they would bump the GFV up a bit as that is basically saying their brand new motor is only worth 41% after 3 years which seems very low.

guess it depends - buying outright - the vat free is the winner, buying on finance the 0% comes in better.

Anyway - asked the dealer to go back and see if they would bump the GFV up a bit as that is basically saying their brand new motor is only worth 41% after 3 years which seems very low.

VWFS have to be very careful when setting the GFV's; a high GFV is good initially as it means you are technically borrowing less money and your monthly payment and interest charges are reduced.....however its never good to find down the line that your car in fact is worth nothing near the GFV figure as you end up locked into the deal until the end or face buying yourself out of it....which ultimately means paying more for it. You can VT of course but its a bit of a ballache. Trust me ive been there and its v annoying (VWFS having valued my wifes 3 year old Polo approx 2k higher than it was worth trade at the time)

IMO its better to pay a little bit more a month to be faced with a GFV a fair bit lower than the actual value of the vehicle and theres two key benefits..... if you trade it you'll get some cash out of the deal to out into your next car and of course if you decide to commit to buying it you'll likely end up with a decent car at a much cheaper price than you'd be able to buy on a used forecourt.

Case in point my 62 plate vRS Blackline DSG estate will have a GFV of 8.6k at 3.5 years old.....given 3 year + cars are still selling for 12-13k on dealer forecourts 8.6k will seem like a steal...and its a one owner car....me being the only owner!

Thanks for that - ^^

 

I am looking for around the £300 mark as a monthly so even if they come up on the GFV to say £10,750 or something, that brings my monthly down my another £20 or so. Also could extend to 3.5 years (42 months is the max) which obviously brings it down even more. Going to have a play with the figures on monday at the dealers.

^^^ booyaka, to the best of my knowledge the gfv is set by vwfs and cannot be changed. The value is determined factors such as model, engine and mileage. A diesel dsg estate with an agreement of 8k miles a year will have a set value, much higher than that of a petrol manual hatch.

The only way to get a higher value on your GFV is to lower your mileage estimate. Also remember if you extend your agreement to 42 months the gfv will fall further, so your payment will only reduce if you pay more than the extra depreciation in those 6 months.

Hope I've made this clear, pcp is a bit of a minefield but with this offer being 0% it is a little easier to work things out.

I myself fancy a petrol hatch manual which has a gfv of 9700 after 3 years @ 10k per year. I'm targeting a payment of £300 a month but I reckon I'll need a 2k deposit and some discount to get the spec I want. I may go 42 month in the end though as I'd likely buy the car afterwards anyway so might as well take another 6 months 0%

No the GFV would be fixed, extras make no difference to this figure as in reality the car is likely to be worth no more in the trade than a standard car.

Options do help sell a car but financially they are of little use and purely for the gratification of the owner.

This isn't right. Extras do affect the gfv, but they don't hold very much of their money. You can check this by using an online configurator and finance calculator for any manufacturer. The BMW one is quite nice.