Is anyone nearing the end of their PCP agreement? As you know, there are 3 choices at the end of the contract.

1. Purchase the car outright.

2. Hand the car back and walk away

3. Trade in the vehicle against a new PCP solutions contract.

Everyone's financial circumstances may be different but choosing option 3 may hit you in the wallet. Given that the second hand values for the Yeti are extremely good it may be worth purchasing the car outright and then trade it in against a new vehicle. I suspect, although not certain, that the second hand value of the Yeti will be greater than the guaranteed future value that is worked out at the start of a PCP contract. Look forward to your comments.

Despite what Skoda might want you to think, you aren't tied in to another Skoda or PCP.

 

As you say, you will almost certainly have a car that's worth a lot more than the settlement figure so as long as you get in before the end of the term you can buy a new car and trade in your Yeti and the dealer will pay off the finance.

Glasses should give you an indication of trade-in value and your finance contract will give the final balance payment, hopefully there will be a decent gap between the two.

 

Suspect I will pay of the final balance at the end of my 3 years unless the dealer makes me a good offer on a new one, but thats 3 years off and anything could happen between now and then!

I'm nearing the end of mine. 4 payments left before the balloon payment.

Looking at all sorts of options at the moment. Just been given a quote for my car, and it is worth on my first quote, a little over £5k more than my ballon payment in part ex towards a 170DSG L&K on the 0% free servicing deal they have at the moment. Problem is it is another £100 per month, which I'm not so happy about.

I'm also looking at HP, business lease and personal lease as well, as I'm self employed.

As mentioned on my facelift production thread, that the FL model is due out hopefully next month, along with probably a price hike of £500-£900 with production starting week 45.

Even looking at other vehicles as well this time. But I want to be able to tow or put a bike rack on a tow ball, and not sure a Citigo can have a towbar.

I will keep on looking.

The main problem is I want the CR170 DSG L&K with all the extras like I have at the moment, but have on idea if that engine gearbox/model combo will be available from the outset with the FL.

From my previous experience with Volkswagen Financial Services, right at the very end of your agreement they will also offer a further option.

4. Pay off the balloon payment over a further 2 years at an APR of around 7%

This happened to us 2 years ago when we bought our Yeti, as we were just coming to the end of a 3 year PCP on a VW Touran.

We had a couple of payments to go an had already done the deal on our Yeti when the letter came through offering this fourth option.

This time around we may well take option 4 if it is offered in a years time.

True, there is nothing to stop you effectively financing the balloon and paying for the car over 5 or 6 years.

Think of all the interest paid! :(

Although most will be under the PCP deal.

I try not to think of the interest!

7% is steep

 

M and S bank offered me 5% today....so I'm sure that can be beaten

 

We took out a PCP about 20 years ago on my wife's Astra and paid the balloon payment at 3 years.....just seemed as though I was paying £4k just to stand still.

 

As she wanted to keep the car I never considered getting rid but looking back I suspect with the price of Astras putting the keys on the counter and walking away may have been the most cost effective option. Obviously the Yeti thankfully does not drop in value in the same way as a Vauxhall of old.

 

Personally I would never go down the PCP route again unless it was the only way to get 0%...or close to that.

 Just been given a quote for my car, and it is worth on my first quote, a little over £5k more than my ballon payment in part ex towards a 170DSG L&K on the 0% free servicing deal they have at the moment. 

 

So how does their trade in value against a new car compare to selling the car privately (~ 1.5K is the usual difference between trade in / private sale)