So I was an early adopter of the octavia, taking delivery in June 13. I don't do huge mileage, currently it is on 4500 miles. The car so far has been impeccable, my only gripe being the woeful local dealer. Unfortunately in November last year I was diagnosed with a serious illness and I've not been able to work since. The car is getting less and less use due to my illness and I'm beginning to wonder if it is worth keeping a car at the moment? It is on a PCP scheme through Skoda. So what are my options, do I see if I can end the pcp early, or keep the car for now and wait for the pcp deal to end, knowing I have a car to hand if I need it. My health should return, but it's not going to happen for a while. I can currently afford the monthly payments but who knows in the future? So do I keep it, or should I sell now and cut my potential losses. Any thoughts appreciated.

Sorry to hear youre unwell Pumatron. Wishing you a speedy recovery.

Id say it depends how much equity you have in the car. If you can get out of it and take some money out id say possibly not a bad idea if being able to continue to afford the car in the near future could become more contentious....otherwise if its in neg equity buying yourself out of it could be a bit of a pain.

Something ive learned.....used values on Mk3 Octavias are not particularly strong. I think supply has now well outstripped demand and it has affected used values.

I reckon if my 1 year old 2.0 Elegance estate, mint and completely stock bar a spare wheel with 18k miles is worth 15k trade id be doing well if I were just selling it without doing another deal...im doing mileage in mine i never really anticipated either so thats not ideal.

Again id suggest weigh that up and see how the figures play out...sadly a PCP makes the decision that little less clear.

Thanks for your reply pipsyp.

Yes your right it is going to come down to residual value against what I owe.

The car is immaculate, but feel my local dealer (who doesn't like me) will pull a fast one on the price.

I can't drive at the moment so it gets awkward just getting to a dealer to find out a price of what it is worth. I doubt they will want to commit over the phone to a price.

I'm kind of stuck with it for the moment by the look of it.

webuyanycar.com will give you an idea of trade-in price and if its not that close to want you owe, you'll know its not worth all the effort of trying the dealers.

 

Sorry to say this but, I don't think its gonna be worth what you owe PCP's don't work that way, most of the fast depreciation happens earlier and the PCP payments only tend to catch up as the rate of depreciation slows down in the back end of year 2 and all of year 3.  On the upside, being "an early adopter" you're futher down the path than most and the break-even point will come faster to you.

 

Keep your spirts up and get well ASAP.

Thanks for your reply pipsyp.

Yes your right it is going to come down to residual value against what I owe.

The car is immaculate, but feel my local dealer (who doesn't like me) will pull a fast one on the price.

I can't drive at the moment so it gets awkward just getting to a dealer to find out a price of what it is worth. I doubt they will want to commit over the phone to a price.

I'm kind of stuck with it for the moment by the look of it.

V welcome Pumatron.

If it helps my dealer has said my 1 year old (in a matter of days) car is worth £14250 trade, they'd possibly stretch to £15k if I were to do another deal with them. I owe there or thereabouts £19k on my PCP (as I took the maximum term with v little down on 0%).

Its bitten me in the a as Im now doing the equivalent of 20-25k miles/year and would now frankly be better off with a company car (which as it happens have a number of good choices including a new shape GT spec Passat saloon or Golf GTD) but cant afford to move the Octavia on.

Thankfully the Octavia is a good car and proving reliable and relatively cheap to run so isnt the end of the world but if I needed to get rid sharpish id be done for.

Edited 10 February, 201511 yr by pipsyp

So I was an early adopter of the octavia, taking delivery in June 13. I don't do huge mileage, currently it is on 4500 miles. The car so far has been impeccable, my only gripe being the woeful local dealer. Unfortunately in November last year I was diagnosed with a serious illness and I've not been able to work since. The car is getting less and less use due to my illness and I'm beginning to wonder if it is worth keeping a car at the moment? It is on a PCP scheme through Skoda. So what are my options, do I see if I can end the pcp early, or keep the car for now and wait for the pcp deal to end, knowing I have a car to hand if I need it. My health should return, but it's not going to happen for a while. I can currently afford the monthly payments but who knows in the future? So do I keep it, or should I sell now and cut my potential losses. Any thoughts appreciated.

 

I feel for you. I've worked with people in this position before who would save heaps of money by taking taxis when they needed to go anywhere. If you were to call VW finance on 0870 333 4449 they may be able to help you bypass your dealer, especially if it's difficult getting there. At worst, they could give you a settlement fee to clear off the PCP. You could then try we buy any car to see if they're in the same area. However, if you didn't put down a hefty deposit, you probably are in a fair bit of negative equity. Whatcar.com will also give you a free valuation but with small deposits, it's usually around two thirds of the way through a PCP when you can walk away without owing anything.

 

At the moment, I guess a car isn't high on your worry list but good luck with whatever you decide and keep us posted.

Mine is a June 13 150CR Elegance Manual which if I remember correctly was about £1800 higher list price than the equivalent 140TSI Manual. Main difference is I've covered 41k. I had a valuation about 2 weeks ago at the supplying dealer, it was £11,500 and We Buy Any Car quoted £10,500, so that may give you an idea if you get a quote off WBAC. The dealer price also was for a standard spec but they would not say how much extra they would pay for the optional extras mine had over £2k of extras so list price was just over £24k. Even taking into account the £3k discount off list and the extra £1k of incentives from SUK, £8.5k drop in less than 2 years is a big hit. I was thinking of switching to an early FL Superb 170CR Eleg as they book around the same price as a similar mileage O3, but the dealer can't lay his hands on one with similar miles to mine so no deal for me at the mo!

Good luck, and hopefully your health will recover soon.

Matt Paz, we are in a similar position. I should have gone with the superb initially.

 

I went in for a superb and came out with an Octavia. The missus wont trust me in Sainsbury's again so every cloud...

Matt Paz, we are in a similar position. I should have gone with the superb initially.

 

I went in for a superb and came out with an Octavia. The missus wont trust me in Sainsbury's again so every cloud...

Only reason I opted for the O3 was cos I'd just had 4 years in a Superb so fancied a change and the FL was not available to order when I changed, but I could have had a Superb 170CR Man Eleg plus park assist, heated screen and ventilated leather for £22k, just £1k more than I paid for the O3. If I could wind back the clock.......

A big part of me now wishes Id kept my Mk2 Blackline, I reckon even now at 2 years old with more miles its unlikely to be worth a great deal less than my Elegance and I paid 3k less for it

Only reason I opted for the O3 was cos I'd just had 4 years in a Superb so fancied a change and the FL was not available to order when I changed, but I could have had a Superb 170CR Man Eleg plus park assist, heated screen and ventilated leather for £22k, just £1k more than I paid for the O3. If I could wind back the clock.......

You sure?

Before I got the Octy, I was looking at prices of Superbs and Octys, and im sure the Superbs came out a little bit higher, and that was for an SE Superb against an Elegance Octy (the lowest spec with cruise). Wasn't a lot in it, but there was a small amount. I remember trying to decide if I could warrant the extra cost of the Superb, and whilst thinking the extra was worth it considering the extra size, I couldn't actually warrant the extra size.

 

As for the quote you've been given for your car. Has it put you off brand new yet?! I nearly shat myself when I saw that quote!! Im going to have to sell now if I want that XF :p

Matt Paz, we are in a similar position. I should have gone with the superb initially.

 

I went in for a superb and came out with an Octavia. The missus wont trust me in Sainsbury's again so every cloud...

Don't worry. Matt went in for a Merc, and came out with the Octy. His wife doesn't even trust him with the family money now! Filipinos at sea send all their money home for the wife. That's what Matt ends up doing!!

So I was an early adopter of the octavia, taking delivery in June 13. I don't do huge mileage, currently it is on 4500 miles. The car so far has been impeccable, my only gripe being the woeful local dealer. Unfortunately in November last year I was diagnosed with a serious illness and I've not been able to work since. The car is getting less and less use due to my illness and I'm beginning to wonder if it is worth keeping a car at the moment? It is on a PCP scheme through Skoda. So what are my options, do I see if I can end the pcp early, or keep the car for now and wait for the pcp deal to end, knowing I have a car to hand if I need it. My health should return, but it's not going to happen for a while. I can currently afford the monthly payments but who knows in the future? So do I keep it, or should I sell now and cut my potential losses. Any thoughts appreciated.

Sorry to read about your change in health.

 

I read key elements in you post and they are, my health should return and I can currently afford the monthly payments, to me keep the car and if your situation changes deal with it then.

Personally - I would keep the car.

 

You are currently in "negative equity" on the car with the PCP, but that is now they are designed (to soften the blow of the huge depreciation hit). If you can afford the monthly payments, then keep the car in case one is needed (not exactly kosher, but you could always let a family member use the car in return for a little help with the costs).

 

Then, when the period is up - Switch it over. I would offer to buy the car off you (the missus will be looking to upgrade her Citigo in June to something a bit more refined for long journeys) but she is a picky mare

Thank you for all your kind replies, the help is really appreciated.

There is much to ponder over. I will sleep on it for a few days and let you all know what I decide. Thanks all.

Sorry to hear of your health problem and hope things turn around for you. The logical here is simple. If you have no need for the car, and will not replace it with another the best would be to sell ASAP! Every month the car will go down in value sadly, the fact the car is on pcp has no barring. Sad but true, if you truly will not use it cut your loses.

Hello all, ok so I've had time to digest and think about my next move. Financially I ve had a few things happen for the better so the money will not become an issue anymore. On thinking about if I could sell, I think I would say no. If I was to buy a new car after hopefully my health returning I would take the initial depreciation again along with a deposit I would have to find. I know the history of my car, it has the spec I wanted with a 5 year warranty, 3 years free servicing and 5 year gap insurance. Even though I am not using it at the moment it is only costing me the monthly depreciation (I m not financially burden with this, just on paper) and pcp payment which I would have with any car I own. Yes, it is costing me money for something I'm not using but it should only be for the short term and selling then replacing will undoubtedly cost me more than keeping what I already have. So thank you for your input and help it really has been appreciated. Good health!!

Get well soon. Sensible summing up.

V welcome Pumatron.

If it helps my dealer has said my 1 year old (in a matter of days) car is worth £14250 trade, they'd possibly stretch to £15k if I were to do another deal with them. I owe there or thereabouts £19k on my PCP (as I took the maximum term with v little down on 0%).

Its bitten me in the a as Im now doing the equivalent of 20-25k miles/year and would now frankly be better off with a company car (which as it happens have a number of good choices including a new shape GT spec Passat saloon or Golf GTD) but cant afford to move the Octavia on.

Thankfully the Octavia is a good car and proving reliable and relatively cheap to run so isnt the end of the world but if I needed to get rid sharpish id be done for.

How has it bitten you in the a?

 

You can claim 44p per mile for the first 10,000 miles then 10p? a mile  (not sure of second allowance amount).

 

Over 25k that works out as £5,900 paid to you and at 48mpg you would pay £2693 (@ £1.139p per litre) so you're making £3,207 a year because you're using your own car.

 

With a company car you would get your fuel paid for you but you lose out big time (especially 40% tax payers) with the BIK.

 

I suppose it all depends on the PCP yearly mileage, if you originally said 10k pa but now do 25k there's excess mileage to pay which would eat into the £3,200 saving.

If you like the car then getting rid while you are unwell doesn't seem that wise to me.

I assume you probably got 0% on the PCP? If so, it's not a bad place to be.

With 4.5k on the clock she's barely run in so to speak so once you are well again, you have a nice, low mileage car to enjoy.

Personally I would keep it but more importantly, focus on your health, wishing you all the best.

How has it bitten you in the a?

 

You can claim 44p per mile for the first 10,000 miles then 10p? a mile  (not sure of second allowance amount).

 

Over 25k that works out as £5,900 paid to you and at 48mpg you would pay £2693 (@ £1.139p per litre) so you're making £3,207 a year because you're using your own car.

 

With a company car you would get your fuel paid for you but you lose out big time (especially 40% tax payers) with the BIK.

 

I suppose it all depends on the PCP yearly mileage, if you originally said 10k pa but now do 25k there's excess mileage to pay which would eat into the £3,200 saving.

I assume Pypsyp takes a car allowance instead of the company car which is what I do and I get 13p per mile paid by the company to cover business mileage fuel.  The car allowance and saving on not having to pay company car tax covers the finance on the car plus the insurance and servicing costs.  For me, covering over 2,000 miles per month, more than half of which is business mileage, it means that over a 4 year period, the car will have depreciated greater than average but I will have claimed over £100/month in mileage allowance tax relief (45p-13p x 40%) so I'll have enough funds to pay the car off after 4 years (same period as company car lease) so what ever it's worth at that point is a bonus and will be used to fund a deposit on the next car, so assuming I finance the same amount again, I'll be able to upgrade next time round.

 

The only problem with this, is not being tied into a lease means the urge to change earlier is very hard to resist as soon as you are out of negative equity, rather than seeing the original plan through to the end of the 4 years! :S

Edited 20 February, 201511 yr by Matt Pez

Get well soon. Sensible summing up.

+1 for me.

Sent from my iPhone using Tapatalk

How has it bitten you in the a?

You can claim 44p per mile for the first 10,000 miles then 10p? a mile (not sure of second allowance amount).

Over 25k that works out as £5,900 paid to you and at 48mpg you would pay £2693 (@ £1.139p per litre) so you're making £3,207 a year because you're using your own car.

With a company car you would get your fuel paid for you but you lose out big time (especially 40% tax payers) with the BIK.

I suppose it all depends on the PCP yearly mileage, if you originally said 10k pa but now do 25k there's excess mileage to pay which would eat into the £3,200 saving.

I get my fuel paid for (have a fuel card) and can claim tax relief on business mileage....however my 82 mile daily commute is not business mileage so I cant justifiably claim it (unless I want to commit tax fraud).

The problem I have is that I am now stuck with a car worth about 14k (which is pretty terrible after 1 year) owes about 19k and am now doing way more miles in it than I would like to which is only serving to cripple its already poor residual value further.

Im also having to insure and otherwise pay to maintain the thing (also seems to eat a set of fronts in only 11-12k...not great) so Im getting it there too. Thankfully I have the three free services but im about to use the 2nd at just 1 year and my agreement is 3.5 so im soon going to be getting hit for servicing too.

I took car allowance originally as I was doing far fewer miles and I didnt fancy any of the cars on the scheme (other than probably having the same car again), the allowance more or less covering the bulk of the cars cost and I was happy. Now its not. Also my scheme has changed an includes a number of late 20k/early 30k cars Id like to drive around in.

Would help enormously if I could claim for my commute but thats impossible. TBF I am bunging more money away per month, in a year or so's time if the equity position is nothing like as bad I might just buy myself out of it..will have to weigh it up at the time.

All i will say is anyone buying an O3, really dont expect it to keep strong residuals....of the three Skodas ive had in the past three years this one is undoubtedly the worst.

Pipsyp - having looked at a lot of prices of both new and used cars I think that most take a massive dive in value in the first year. Unfortunately your mk2 blackline was the exception, not the O3. The list price for my car is just over 21k, and I bought it 1yr old from a franchised Skoda dealer for 14,450, so you have to assume they wouldn't have paid more than 12.5k for it in part ex (not that it was done this way, it's an ex-hire car).

 

My last car was even worse (or better), a fully loaded Focus with list price around 20k and I bought it 1 yr old with 9k miles on it for 12,300. Again it was from a franchised dealer in the official Ford used scheme.

 

You've got to look at this against the discounting regime as well. For cash I was seeing 17-18% discount on Skoda's via web brokers (first registered user too, none of this pre-reg nonsense) so my car could actually have been had new for around 17.5k, for a 12-16 week wait. The Focus was probably even more heavily discounted, nobody ever came close to paying 20k for mine, even with all the toys it had.

 

I hope one day you can find a deal as good as your Blackline, but I'm not sure they come around too often.

I too think buying one year old is probably the way to go in future but move up to premium brands like Merc or Jag for new Skoda money.