For those who have done the PCP thing, I got some figures from one dealer the other day and he set the Final Value figure at as low as £600. This obviously bumped up the monthly payments.

This may sound daft to have the lower final figure, but this means it's very close to having a interest free loan for 3 years.

I've had plenty of PCP in the past but with other manufactures, but all the GFV's seem to have been set in stone.

Have had this on a few customers cars, not just the Citigo.

 

When you first explain a PCP it frightens some people because of the 'balloon' payment at the end.

 

AFAIK no PCP end payment is set in stone until the contract is signed - you can pay in to the contract to lower the monthly payments or shorten the term but not the GFV.

 

With the flexibility of being able to lower the GFV it allows current HP customers to get a more realistic monthly payment to what they may be on at the moment and do not have a £4,000 figure to find at the end.

 

Yes, it does increase the monthly payments but it is a lot closer to a HP agreement by then.

Why?

It doesn't seem to offer you anything you couldnt do with a modicum of self discipline and you lose the benefits of the finance arrangement such as handing the car back partway through.

why??

if the aim is to remove the shock of a massive final payment why not just just divide the final payment by the number of payments and put that money aside. no brainer really!

How many people buy the car at the end of the pcp? I thought most people just got another car on a pcp?

if I want to own the car in 3 years, skoda PCP will work out as a near as dam it 0% loan.

I started looking at 12 month old stuff, and most are only £300-500 cheaper than a brand new one! By the time I have got a loan at 5% apr, the second hand one will work out the more expensive way of buy a citigo!

I've done the PCP thing on Fords, VW's, and have a Audi at the moment. I'm not doing mega miles, so don't want the long term tie in anymore. I want to own the car in 3yrs time, but still need to borrow the money to do so.

why??

if the aim is to remove the shock of a massive final payment why not just just divide the final payment by the number of payments and put that money aside. no brainer really!

I have thought of just paying as little as possible every month and using my deposit and 'money set aside' to go in a savings account to earn interest for when the ballon is due. Only little problem is, savings don't earn interest at the moment!

I still haven't had anyone tell me, definitively, if the PCP route would do someone like myself any favours given that I usually pay cash for my new cars.  I can see people saying above that they consider it as a 0% loan for three yrs....but on my Yetis you can get two grand off the list price and surely that discount more than cancels out the saving of the pittance in interest I get in my savings account?

 

Maybe it's different in the case of the Citigo/Up as there isn't much more than, say, £500 - maybe £700 to be had as discount?

Edited 10 February, 201412 yr by oldstan

I still haven't had anyone tell me, definitively, if the PCP route would do someone like myself any favours given that I usually pay cash for my new cars.  I can see people saying above that they consider it as a 0% loan for three yrs....but on my Yetis you can get two grand off the list price and surely that discount more than cancels out the saving of the pittance in interest I get in my savings account?

 

Maybe it's different in the case of the Citigo/Up as there isn't much more than, say, £500 - maybe £700 to be had as discount?

I,too, pay cash for new cars....always have and suits my circumstances. I got £800 off list (last year) on Citigo Elegance.

I too would love to pay cash, but don't have the full amount so need to borrow some. As for discounts, I've been quoted £770 off a elegance, with or without finance.

I did actually this with my Superb, the GFV is £600. It effectively means I've got an interest free loan plus the free servicing deal and I am not in the fortunate position of being able to pay cash outright. It's the old story the deal suits me, I keep my cars for 4 to 5 years or 100K miles which ever is sooner.

 

If we change my wife's car over then a more usual PCP deal works better as she doesn't do a great deal of miles.

I,too, pay cash for new cars....always have and suits my circumstances. I got £800 off list (last year) on Citigo Elegance.

 

I've seen plenty of members here met with indifference when waving cash at the dealers. I know it doesn't have the same allure it might've once had.