Chop it in window

[randomeclipse]

Hey guys,

I've recently entered into a PCP contract on an Octavia and really like the car. I was wondering though how long do you tend to leave it until you look to change vehicles, i.e. a faster or better equipped Octavia. This is taking into account, for example a 3k deposit and a 42 month plan.

2 years, 3 years?

[Tim1631]

Change it when you want. Although the earlier the change the more money you will loose.

I used to change every 6 months when I was in the forces as I'd make money due to not paying tax.

[randomeclipse]

Change it when you want. Although the earlier the change the more money you will loose.

I used to change every 6 months when I was in the forces as I'd make money due to not paying tax.

Lucky you .

[Tim1631]

Not anymore mate :(

[pipsyp]

Truth is the Octavia is proving a poor on terms of value retention.....mines lost not far short of 50% of its sticker value in 16 months.

Lots of factors....little deposit in....almost certainly huge neg equity position for mosr if not all the term......bigger deposit, perhaps not negative equity but you've almost certainly lost a good few K just driving away from the dealer so you'll probably have nothing like 3k in the car after a few months and that will probably be the case for most if not all the term.

Im up to my neck in neg equity.....am hoping it may begin to address itself around the 2 year mark but am resigned to the fact i'll likely end up keeping the car to around 3 years at least....id be prepared to lose a few hundred quid in another deal to get out 6 months early but if its worse i'll just see it out I think and perhaps have to stomach an MOT and probably a service.

Funnily enough Ive had two other Skodas on the VAT free finance (a Fabia vRS estate and Mk2 Octavia vRS Blackline DSG estate) and got out of both of those easily at 18 months and 12 months respectively with money to put into the next car).

[Stormchaser]

I'm trying to get out of my Rapid after 9 months of s PCP contract. The cars worth jack and I'm £3500 in negative equity still. Strange because it was like this 3 months ago so obviously it's lost even more value. I'm stuck with it for now. I'll probably surrender it at its 50% point of the contract and walk away.

[M12MKD]

Sadly it's not only Octavia's or rapids.

My citigo go is in a shocking amount of negative equity despite only just having a year to go.

Cars you generally always lose :(

[pipsyp]

Having the car on zero or v low interest VWFS finance and putting little or jo deposit in does not help the neg eq situation on these.

I think the VAT scheme (essentially selling the cars for 20% less - a more realistic list price I feel) was a better way of doing it as you were buffered quite heavily from the cars heavy initial drop in value.

Its all changed to benefit Skoda more than VWFS, I guess they now just get a kick back from SUK for each car sold.

[randomeclipse]

I'm guessing then that it will take me at least 2 years let's say to push the equity back up through the negative post the initial forecourt depreciation.

I'm new to this car finance game, so I'm interested to see what the dealers can offer me in say 2 years to keep my custom, as I assume that's what they really care about.

[Scribbler]

I took out a 7% pcp on a blackline I think it cost about £18,000 over 42 Months I had about 12 months left on it (£9.5K) but have just swapped to a new VRS to take advantage of the 0% pcp. I have been given £11.500 trade in against the backline the difference I am using for my deposit. Hope this helps.

[pipsyp]

I took out a 7% pcp on a blackline I think it cost about £18,000 over 42 Months I had about 12 months left on it (£9.5K) but have just swapped to a new VRS to take advantage of the 0% pcp. I have been given £11.500 trade in against the backline the difference I am using for my deposit. Hope this helps.

Blackline was a great bet....bargain new price and still holding their value well (I guess by inherrently being v good spec late model Mk2 TDI vRS and still in relative demand)...i did well on mine selling it after 12 months. Just do not expect the experience with the Mk3 to be the same. Had I known then what I know now I wouldnt have bought a mk3.

[pipsyp]

....that said I get bored of cars and do tend to change them fairlu regularly. If you are buying the Mk3 with the intention to keep it to near the end of the agreement or to the end and buy it/give it back not so much to be concerned about. Just dont expect to get out of it for some good time with any equity as you have with the BL.

[NotSoSimple]

Blackline was a great bet....bargain new price and still holding their value well (I guess by inherrently being v good spec late model Mk2 TDI vRS and still in relative demand)...i did well on mine selling it after 12 months. Just do not expect the experience with the Mk3 to be the same. Had I known then what I know now I wouldnt have bought a mk3.

I agree but i just mentioned on the other topic, i have had a couple of cash offers of £16k - slightly below an 'excellent private sale' valuation. However, i only owe 15k and only put in a 1k deposit, so if i achieved 16k i would get my deposit money back and the monthlys i have paid were simply an interest free lease.

[BA Baracus]

Blackline was a great bet....bargain new price and still holding their value well 

 

:clap:  :sun:   

[BA Baracus]

....buying the Mk3 with the intention to keep it to near the end of the agreement or to the end and buy it/give it back not so much to be concerned about.

 

This.

 

If you sign up for a 42 month or whatever PCP period you need to stick it out to the end - dealers won't be sympathetic if you turn up 6 months into a PCP.  You need to play the game.

[Scribbler]

Blackline was a great bet....bargain new price and still holding their value well (I guess by inherrently being v good spec late model Mk2 TDI vRS and still in relative demand)...i did well on mine selling it after 12 months. Just do not expect the experience with the Mk3 to be the same. Had I known then what I know now I wouldnt have bought a mk3.

 

 

Agreed although this new MK3 Vrs is similar price to the blackline I have got spare wheel and Satnav (im good at haggling) so I expect the residuals to be similar. Although the beauty of pcp is that its got a guaranteed final value so your never in negative equity. Im pretty sure my new MK3 vrs will be worth more than £10k (final payment) in 42 months time.

[Scribbler]

This.

 

If you sign up for a 42 month or whatever PCP period you need to stick it out to the end - dealers won't be sympathetic if you turn up 6 months into a PCP.  You need to play the game.

 

Have you just read my post? I turned up 12 months early swapped a 7% pcp for a 0% pcp with £500 fuel card loads of extras and they still gave me £2k cash difference for my trade in to use as deposit. The trick is to time the swap with an offer not just wait till the end of the pcp.

[pipsyp]

Have you just read my post? I turned up 12 months early swapped a 7% pcp for a 0% pcp with £500 fuel card loads of extras and they still gave me £2k cash difference for my trade in to use as deposit. The trick is to time the swap with an offer not just wait till the end of the pcp.

Sorry but the Blackline has just been a good bet because it so happens to have been a steal new but also has not depreciated badly either. You have really been lucky with the Blackline on both counts.

I am 16 months in on my O3 deal, car ia worth only a little more than my two and a bit year old blackline would be now (older car with more miles) and cost £3k more. It would cost me in the region of £4k to walk away from my O3 and I dont anticipate it will change for some time to come if at all....many people are in this position and its the first time ive found myself in this state with a Skoda (and have bought three new ones over the past four and a bit years).

You are probably getting a good deal on the O3 (in the main from discount and the 0% deal as they are v affordable monthly) but the money youve put in has gone up in smoke and you'll probably find yourself in a reasonable amount of neg eq as most other O3 PCP buyers have. Blame a flooded used market driving down used prices....simply loads of O3's available used now...many ex Skoda demos, ex management cars and particularly ex rental cars.

[Scribbler]

Sorry but the Blackline has just been a good bet because it so happens to have been a steal new but also has not depreciated badly either. You have really been lucky with the Blackline on both counts.

I am 16 months in on my O3 deal, car ia worth only a little more than my two and a bit year old blackline would be now (older car with more miles) and cost £3k more. It would cost me in the region of £4k to walk away from my O3 and I dont anticipate it will change for some time to come if at all....many people are in this position and its the first time ive found myself in this state with a Skoda (and have bought three new ones over the past four and a bit years).

You are probably getting a good deal on the O3 (in the main from discount and the 0% deal as they are v affordable monthly) but the money youve put in has gone up in smoke and you'll probably find yourself in a reasonable amount of neg eq as most other O3 PCP buyers have. Blame a flooded used market driving down used prices....simply loads of O3's available used now...many ex Skoda demos, ex management cars and particularly ex rental cars.

 

You have a guaranteed final valuation though so your point is not valid how can you end up in negative equity just hand back the keys!

[M12MKD]

The MK2FL held its value very well. My MK3 I've ordered to the same spec is 9k more and I'm sure will not be worth in 3 years as much as I just sold my 5 year old a few months back.

 

I think the MK2FL is what pushed Skoda into the top of the game, and there by is now like so many, paying the price with heavy depreciation.

 

5 years on, and I sold the MK2FL with just under 50% of it's value......which is a very rare thing now days.

 

At the end of the day, you're only in this world once, you lose some you win some but just enjoy it whilst you can.

[BA Baracus]

http://www.whatcar.com/car-depreciation-calculator/results?makeId=22922&modelVersionId=41984&editionId=43100

 

Look at the money the new diesel VRS loses over the initial purchase period.

 

Year 1 valuation down £8,600

Year 2 valuation down £3,000

Year 3 valuation down £2,500

 

All things being equal, you'd probably be better hanging on to the end of a PCP contract - I'll come back in a years time at the end of my PCP and let you know how I get on.

 

But if folk want to and can afford to change earlier then go for it.

[pipsyp]

You have a guaranteed final valuation though so your point is not valid how can you end up in negative equity just hand back the keys!

Point is entirely valid if you trade early just as you have done. All I am saying is dont expect to do the same with your Mk3 is all, terrible depreciator and will be worth about 40-45% less after year one...this is from someone who had a Blackline and now has an O3.

[BA Baracus]

terrible depreciator and will be worth about 40-45% less after year one...this is from someone who had a Blackline and now has an O3.

 

The second hand market is re-adjusting and pricing the O3 appropriately suggesting that the new car list price is too high and unrealistic.

[Scribbler]

Point is entirely valid if you trade early just as you have done. All I am saying is dont expect to do the same with your Mk3 is all, terrible depreciator and will be worth about 40-45% less after year one...this is from someone who had a Blackline and now has an O3.

 

Not a vrs though with the same spec as the blackline!

[Scribbler]

http://www.whatcar.com/car-depreciation-calculator/results?makeId=22922&modelVersionId=41984&editionId=43100

 

Look at the money the new diesel VRS loses over the initial purchase period.

 

Year 1 valuation down £8,600

Year 2 valuation down £3,000

Year 3 valuation down £2,500

 

All things being equal, you'd probably be better hanging on to the end of a PCP contract - I'll come back in a years time at the end of my PCP and let you know how I get on.

 

But if folk want to and can afford to change earlier then go for it.

 

Those figures are on a bog standard VRS List price.

 

According to your own estimates the car will be worth £11000 after 3 years. I Will only owe £10k after that period. Job done £1k for next deposit but like I said only if there's a good deal on.