A lot of us on here have our citigos on pcps and having had a look online it looks like the residual values are gonna be way lower than the mgfv on our cars.

I'm sure the mgfv on mine after 42 months is about 4.5k whatcar reckon that after 3 years we are looking at about 4.3k! I have my mgfv set at 12k miles pa too.

I've seen montes offered at a similar value but only on 5k pa.

If this is the case it might be worth looking bale out now and get something else or do I goto the end and hope skoda have their maths right and that there is some equity in the car at the end. To be fair I was never going to go past 3 years anyway.

Thoughts??

swmbo's citigo elegance greentech 75PS at 18 months old was valued on CAP at about £6,000 we paid about £11500, so at 18 months residual was only about 50% of new value 

 

so unless depreciation really slows down I suspect the £4000 residual at the end of 42 months was optimistic

 

hyundai gave us nearly £7000 to clear the pcp and give us a little equity in the car, also an addition £1000 discount due to where swmbo works  so citigo goes for an i10 premium in a couple of weeks

That's what I was thinking with the values 3500-4000 at the end . Might look to get rid soon when dealers are desperate to shift new cars and use them to clear the negative equity.

That's what I was thinking with the values 3500-4000 at the end . Might look to get rid soon when dealers are desperate to shift new cars and use them to clear the negative equity.

 

 

I ask in innocence/ignorance here and certainly not to make any points...but with the benefit of hindsight, Markyg, what would you have done if you could put the clock back?

 

I've never had PCP or credit and can afford to pay for a car up front and used this to get £2k off the Yeti - but am constantly seeing the availability of PCP as well as the obvious credit arrangements via a loan.

 

At least with a cash buy and also with a loan you can see what you'll pay  - but PCPs seem such a moveable feast.  

 

The dealer who sold me my Yeti now sells Toyota and Lexus but extols the virtues of PCP and assures me I'd be mad not to.

 

I honestly don't know whether, say, at the end of a typical three year period, you'd be better financially better off with one or the other.

 

Both of my cars are over three years old and I'm feeling inclined to hang on to them.  The Hyundai still has warranty and the Yeti is covered by annually renewed extended warranty.

 

I hesitate to mention Hyundai again, but it sounds as if the "H" word is a better financial proposition.  I don't think my i10 has lost a fortune in three years and the figures for the Yeti still look respectable but your figures for the Citigo look less so.

 

The only reason I've not swapped the i10 for a Citigo was the auto. gearbox...but I keep an eye on the forum  (as some will have noticed).  But your thought are making think I did well not to swap even if I had liked the ASG.

 

Your thoughts (and those of others, of course) will be welcome.

Edited 22 February, 201511 yr by oldstan

To be fair not many people have the cash lying around to buy cars nowadays. Yes, technically I did have the 10k in my bank but that's earmarked for a wedding! To me a car is a luxury so I pay with it from my disposable income. I have a relatively well paid job so £120 per month isn't much.

 

The PCP was also a no brainer as it was 0% finance, so even if you are going to pay cash why? Garages love them because it means they actually get to move some new cars now and have a good supply of 3 year old vehicles to sell used. If done correctly its also a good way to keep yourself in a new car every few years. As Ive said very few of us can afford (or are fortunate enough to be able) to pay cash for a car so have to finance it some way. If you are going to continually finance a car, which again a lot of us do then PCPs can be a cheap way to do it.

 

If I was going to do it again I would still have bought the citigo, but id have put in zero deposit (in fact unless you are going to buy a car you should never put in more than a months payment as deposit for a pcp as you will never really get that money back). If I change my car at the right time I'll be able to get a dealer to pay for the negative equity.

All received with thanks.  I didn't really elicit whether you felt that the car itself was losing more money than you'd envisaged though.  And if you felt that a Hyundai i10 would, perhaps, have had better residuals which might have been beneficial to your outcome after three years, as seemed to be suggested by bluecar above. Obviously the question of which is the better car or which has the better dealer network or warranty or a thousand other things is a matter for debate (and it is, of course, often debated via reviews and on forums such as this).  Obviously enough, the fact that it's a Citigo forum is likely to result in owners, on the whole, favouring the car they bought... i.e. the Citigo, but hopefully other models can be spoken of without it causing bad feeling.  

I thought the car might hold its money a bit better and better than the i10. The i10s aren't bad cars my cousin had one and liked it till it went through a few gearboxes and he rejected it and replaced it with a mii. He thinks the mii is a better car but every one has their own reasons for choosing the car they did. At this end of the market you can't really go wrong with the citigo trio or an i10.

My cousin didn't rate the hyundai dealer and I've heard a few grumbles about the warranty not being much cop but there are plenty of poor skoda dealers out there too.

When I bought it and indeed still now the citigo ticks more boxes for me than the i10.

I also think vw thought the up/citigo /mii would have better residuals than it has got - maybe a victim of its own sucess??

Oh and id like to think we can still discuss other cars, although we are all going to say we like the citigo best

All rcvd. with thanks.

This is an interesting one...

Given many of us took up the 0% offer, and also putting down minimal deposit - it means negative equity all the way to the end - even more so if the cars value drops below GMFV.

 

Im in a bit of a quandry what to do with mine, as im currently just over a year into the 42 month term and look like ill definitely pass the agreed mileage.. Might go see if the dealer can do me a deal to get me into a Fabia. 

Interesting thread,  I bought mine on a PCP, first time ive ever had one and had hoped it was actually a pretty safe way of getting a car.  I would hate to have to put up extra money when trading in.

If the car is worth less than the mgfv at the end you can just hand it back and pay nothing. So it is safe that way. I'm sure some dealer would give you an incentive to upgrade you may have to shop around.

Only putting in a minimal deposit is the only way to do a Pcp. I've seen threads in the fabia 3 forum where people have had quotes where the deposit is 3-4k. Unless the car books at 3-4 K over the mgfv (very unlikely!) you are going to lose that money and have to find the same deposit again to get a similar car at the same price.

I'm on the 0% and put down my old car as a deposit (£2300) I was going to hopefully change for a new car at the end of the pcp however, I should now be in a position at the end of the term to just pay it off if I decide to.

To be honest it's a great little car and if there is no equity in it at the end then why not buy it if you can!? Especially on 0% your only paying what you would have initially anyway.

Sent from my iPhone using Tapatalk

If you are going to buy the car at the end it's pretty irrelevant. But if you don't you've lost the deposit you put down as at most important reckon there will be about 300 equity in the car.

Hence why if you put down a larger deposit it's safer to lower the MGFV than it is to reduce payments... When we bought ours we accepted that any deposit put down would likely never be seen again. If there is equity at the end - great!

My 64 reg Rapid has lost £4K already [emoji15][emoji15]

Sent from my iPhone using Tapatalk

But in theory the mgfv is fixed so a large deposit won't reduce that.

4K! That's insane! Mind I bet when the dealer resells it 3k of that is put back on the price!

More than likely [emoji57]

Thank god I rejected it [emoji106]

Sent from my iPhone using Tapatalk

Yeah sounds like a lemon.

All the Pcp deals in see on montes still have the mgfv at 5.5 to 6k. Maybe they are doing that to keep the monthlies down and skoda will take the hit after 3 years.

I know vw do this as the missus got a new polo 2/3rd into a pcp and they paid all the negative equity and they always try to get their customers to change at a similar point.

my mgfv was £3.9k on 7k miles 36 months. I'll probably just buy it at the end (as long as it's as good as I hope!!!)

That's about right imo. I've seen some set at 5k for 5thousand miles a year.

PCP has definitely had a big affect on residual values. My Mii has lost ~£3,000 in just over a year I think. I bought a 107 back in 2007 for £6200 cash and after 5 years got £3200 in PX.

 

I think everything lined up for me there. 

Bought my car used but nearly new, I've lost nearly 3k in a year!

I've been looking at used UpMiiGos and the prices are all over the place. I've seen £2k difference between dealerships for an equivalent age and model car, and some trying to sell a 35k mile 12 plate for the same as you might find a 10k 63 fifty miles up the road.

Assuming that trade in prices will be in line with the cheaper cars, I can't see there being much equity in some PCPs.

Ive seen that too.

 

I quite fancy an Ibiza FR. A lot of car for the money. If only skoda were doing deals this good. I guess it depends what I can get for mine.....