VAG group finance seem very keen on offering "deposit contributions" on PCP solutions. Would they be likely to offer better discounts if you went in with a "cash deal" as far as they are concerned? Anybody any idea on what the current discount rate is in VAG garages or is it dependant on each salesman or branch policy?

The VAG strategy is to focus on building long-term relationships with their customers.   Ever since Volkswagen almost went under some 15 years ago, they have become less interested in the "quick sale" and more focussed on developing brand loyalty. 

Attracting a new buyer into the fold with a generous PCP deal will hopefully convert the new customer into a VAG customer for life, while the same offer will assist existing customers wanting to trade in their "nearly at PCP term end" car for a new one.   For this reason, I doubt very much if many dealers would be able to offer much of a "cash deal" compared with the PCP offer.   Don't forget, too, that PCP, even on a low interest rate, generates more income for Volkswagen Financial Services and back into VAG's coffers.

Personally, I have been a fan of PCP for years, and a convert to VAG 15 years ago when their strategy changed and we got our first Polo.   The only time we went away from PCP was when we bought our 07 plate Polo after its PCP term based on the following criteria
1.   We had the car from new, we knew its history.
2.   The car was a little tank, beautifuily built - it would go on for years and years

3.   The "GFV" which we had to pay to buy the car was about £1500 lower than the car's resale value.

 

After running the car for two years as our own property, I took a calculator and costed out how much we paid on getting the car through two MOT's - 4 new tyres, a new exhaust, a new battery, air conditioning recharge, a major service and cam belt renewal at 60,000 miles and guess what?   We ended up paying more than we would have done if we had let her go and wheeled a brand new Polo out of the showroom instead!

Edited 30 December, 201411 yr by bealine

It depends on this being nearly 2015 and different from 2014 because the Money Markets are different,

& Dealerships & Manufacturers are desperate.

 

Let us know what you find out as you try different places, and Dealerships, Vendors & Lenders.

 

All change in the car trade right now with Leases, Loans & Private or Fleet sales.

 

Anyone shifting Vehicles in Stock / Stored/ Imported & Cars at Ports or Ordered, cancelled orders etc are going to be dealing differently possibly from 

New Models, Models not yet Launched & Factory Builds, or Special Builds.

 

What kind of car are you after,

& from which VWG Brand, VW, Skoda, Audi, Seat or maybe Porsche / Buggati /Lambo / Bentley etc ?

 

Some might have nicer coffee and waiting areas / Courtesy cars.

Edited 30 December, 201411 yr by goneoffSKi

The dealers I've been visiting have all been much keener to do deals on PCP than a straight cash transaction.

So spill the beans,

 which Manufactures Dealers, and what are you after?

So spill the beans,

which Manufactures Dealers, and what are you after?

If that was directed at me, Audi and Jaguar.

I think it varies greatly on time of year, sales figures, company etc. At the time I bought my vrs cash got me a much much bigger discount than PCP and this was retty much right after the release of the new model.

Spill the beans was directed at the OP.

 

 But only because on the phone i never noticed that was not their post on #4.  Sorry.

Edited 30 December, 201411 yr by goneoffSKi

I've been looking at Polo SE either 1.2 TSI 90 or 1.4 TDi 75 BMT or various incarnations of the New Fabia to a similar price with probably TSI 90 or 110 or at a stretch 90 TDi.

The car I'd be trading in would be the Fabia in my signature below. I do around 10k and I have considered selling it on here.

What I can't get around is the final payment issue on PCP . If I put my Fab in as a deposit and at the end of the term i decided not to pay the final instalment and walk away from the brand, surely I end up with no car and no deposit? Or am I missing something here?

I've been looking at Polo SE either 1.2 TSI 90 or 1.4 TDi 75 BMT or various incarnations of the New Fabia to a similar price with probably TSI 90 or 110 or at a stretch 90 TDi.

The car I'd be trading in would be the Fabia in my signature below. I do around 10k and I have considered selling it on here.

What I can't get around is the final payment issue on PCP . If I put my Fab in as a deposit and at the end of the term i decided not to pay the final instalment and walk away from the brand, surely I end up with no car and no deposit? Or am I missing something here?

You are right - if you simply handed the car back and walked away you would owe nothing but neither would you have a car or any deposit for you next one. But it's relatively rare for anyone to do that. The only situation where you would ever hand it back was if for some odd reason the value of the car had crashed and it was worth less than the MGFV payment. It's more likely that the car will be worth more than the final payment so you could either A- pay it and keep the car if you like or B- part ex it against another one (either skoda or any other make doesn't matter which). The dealer will then pay he final payment for you and you will be able to use any excess amount as a deposit on your next deal. :-)

Dealers don't want hard cash. The days of walking into a showroom with a bag full of cash and expecting a big discount are largely gone.

 

HP, leasing, PCP and straight finance is where the money is made and where the discounts are to be had.

 

Salesman incentives, attractive APR's and generous deposit contributions are all offset by the financial reward to be enjoyed by getting a potential customer onto a PCP.

 

How many people roll their first PCP onto another, and another etc. Customer for life?

So spill the beans,

 which Manufactures Dealers, and what are you after?

George, why do the majority of your posts have random line breaks and spaces in the middle of them?

It's very distracting.

My grammar was not corrected enough when at school, so thanks for pointing that out.

Distractions are fine with me. It must be how i type things i would suggest.

With PCP's offering decent manufacturer contributions and stuff like inclusive (I won't use the term "free" as it will be being paid for) servicing , it may be worth taking out a PCP and paying it off soon after to avoid the hefty interest payments but retaining the discounts and service. I spoke to an Audi salesman about this and he said whilst not wanting to publicise it it was perfectly doable.

There is nothing to stop you buying the car on PCP to get the attractive discounts and free servicing (sometimes), and then cancelling the agreement within the cooling off period, and paying the balance with cash. A few on here have done this to get the free servicing deal, and better discounts.