Chop it in window

[Dodgy]

I don't care how much my car appreciates within reason, that's why I obtained it via PCP in the first place. 

 

If something depreciates; lease it

If something appreciates; buy it

[themanwithnoaim]

There's only one thing that costs more than cars and you can ride them both but, you car will crank far less than your women at 4am on a frosty morning !

[cortina63]

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.

hAve a look at leasing, you could easily save your grand over pcp monthlys and would cost you far less in the same period than you paid for pcp

[Scribbler]

hAve a look at leasing, you could easily save your grand over pcp monthlys and would cost you far less in the same period than you paid for pcp

 

Im not sure what you mean you would need to give specifics. 

I'm paying 0% finance on about £20k over 42 months, Skoda are giving me £500 contribution towards the deposit plus £2k balance from my old car. They are also giving me £500 Preloaded visa card to spend on fuel (that's about 6 months). I get Autoglym lifeshine, Gap for free spare wheel and SatNav plus some other deal sweetners. repayments are £260 per month, smidge more than the blackline was. At the end of the 42 months (i'll owe £10k). I can walk away and hand over the keys although I suspect there will be a small £1-2k residual value left in the car at that point. ill probably use this for the deposit on a new car. What Finance gives me this and the security of a guaranteed minimum final valuation?

[RandomSkodaperson]

PCP is manufactured to try and keep clients within the brand at the end of their deal. No surprise the trade is enough for the next deposit and off they go for a few more years. No problem if you are happy to wait until the end of the contract. The 0% and free servicing was a no brainer for me a few years ago. I cannot believe I am almost half way through my current deal. Last free service coming up this month.

 

Other brands are always keen to temp the client over.

 

Earlier this year I sorted a new deal on a Volvo XC60 for my wife. Instant 25% off list matching DTD from local dealer , service pack for 3 years and a few extras. It will be interesting to see what Volvo offer for my car in a few years. I have been really impressed by the Volvo quality. Super smooth new 8 speed diesel auto and just as fast as my car.

 

I do like the look of the new Superb hatchback though.

[pipsyp]

As I said before if you are intent or equally happy to keep the car to the end of the term then there is nothing really to worry about.

Used values are parp because there are so many nearly new O3's available (or seem to be)....after the initial rush I think supply has outweighed demand for the vehicles....though those prepared to buy nearly new are getting a good deal I think.

Also the GFV's that VWFS have set are in my opinion unrealistic given what has transpired (and in fairness you'd have needed a crystal ball to determine how well values would stack up on the O3 after a year or so after release but they should be adjusting figures based on current and not estimated values from some time ago). My car is said to be worth £10.3k after 42 months.....that its barely worth 13k at less than 18 months old says alot IMHO. I think theyve done it so the amount financed isnt so high to make the cars affordable on a montly basis which you could say is a little naughty really. I'll be less naive next time (if theres a next time).

Scribbler....fair enough you seem to have all answers but Im personally sceptical that you'll see £1-2k back out of it when you sell; as things stand unless the market for O3's changes significantly I dont think it'll happen myself. A good deal youve got though and will provide 42 months good motoring if you are prepared to keep it that long.

[RandomSkodaperson]

Pipsyp, my original car would have been the same as your model but with DSG. I asked my dealer to play around with the finance figures and the vRS came out cheaper per month due to the higher GFV including leather.

 

I don't think my car at list price can compare to the quality of the Volvo (discounted price) for the same money. Different cars but it makes you think about the next one.

Edited 11 June, 2015 by RandomSkodaperson

[randomeclipse]

Some interesting points raised. I think I'll keep the car and enjoy it for 2 years then look to test the dealer water and see what's what.

[cortina63]

Im not sure what you mean you would need to give specifics.

I'm paying 0% finance on about £20k over 42 months, Skoda are giving me £500 contribution towards the deposit plus £2k balance from my old car. They are also giving me £500 Preloaded visa card to spend on fuel (that's about 6 months). I get Autoglym lifeshine, Gap for free spare wheel and SatNav plus some other deal sweetners. repayments are £260 per month, smidge more than the blackline was. At the end of the 42 months (i'll owe £10k). I can walk away and hand over the keys although I suspect there will be a small £1-2k residual value left in the car at that point. ill probably use this for the deposit on a new car. What Finance gives me this and the security of a guaranteed minimum final valuation?

[cortina63]

Im not sure what you mean you would need to give specifics.

I'm paying 0% finance on about £20k over 42 months, Skoda are giving me £500 contribution towards the deposit plus £2k balance from my old car. They are also giving me £500 Preloaded visa card to spend on fuel (that's about 6 months). I get Autoglym lifeshine, Gap for free spare wheel and SatNav plus some other deal sweetners. repayments are £260 per month, smidge more than the blackline was. At the end of the 42 months (i'll owe £10k). I can walk away and hand over the keys although I suspect there will be a small £1-2k residual value left in the car at that point. ill probably use this for the deposit on a new car. What Finance gives me this and the security of a guaranteed minimum final valuation?

if thats suit your needs thats great, for me, paying 20% dep and 24 months of about 340,or 36 months about 280, as the 0% is only available 36 months max, and if im lucky it will be worth 15k at the end of it, on pcp,with pch im paying 1500 dep and 220 month then give it back with any milage penalties paid, the remaining pcp deposit in an isa along with saved monthly cost, total payable for car for 2years just over 6k,pcp does not guarantee you any decent equity at the end, depends on market values, so its worth bearing in mind that there will be a lot of ex pch cars hitting the market then also,its all down to what suits you, but just have a look at the costs, savings are more than a fuel card and 500 dep contribution

[Pumatron]

Let's face it. There are probably hundreds of different variations on deals to be had across car manufacturers. There is a little of my black cats blacker than yours shining through here but it comes down to if your happy with the deal put in front of you. Forget what the next person got. It all comes down to if the deal meets your expectations and your happy to pay whatever that deal entails. If it does not, either haggle a bit so it does or simply walk away.

[Scribbler]

if thats suit your needs thats great, for me, paying 20% dep and 24 months of about 340,or 36 months about 280, as the 0% is only available 36 months max, and if im lucky it will be worth 15k at the end of it, on pcp,with pch im paying 1500 dep and 220 month then give it back with any milage penalties paid, the remaining pcp deposit in an isa along with saved monthly cost, total payable for car for 2years just over 6k,pcp does not guarantee you any decent equity at the end, depends on market values, so its worth bearing in mind that there will be a lot of ex pch cars hitting the market then also,its all down to what suits you, but just have a look at the costs, savings are more than a fuel card and 500 dep contribution

 

I don't understand the above.

 

You say Total payable for 2 years is 6k but before this you say 24 months @ £340 which is £8160 & 36 months @ 280 which is £10080.

 

Im only paying £10.9k and that's over 42 months wheres the saving? also I get the option to buy the car at the end of the term if I want. I don't think leasing has this option? I  Purchased my Red VRS at the end of my finance because it was a cracking car never let me down had It 10 years now this new one might be the same I might want to keep it.

[Scribbler]

Let's face it. There are probably hundreds of different variations on deals to be had across car manufacturers. There is a little of my black cats blacker than yours shining through here but it comes down to if your happy with the deal put in front of you. Forget what the next person got. It all comes down to if the deal meets your expectations and your happy to pay whatever that deal entails. If it does not, either haggle a bit so it does or simply walk away.

 

The OP's question though is if there is a window of opportunity to check out early on a PCP and im trying to illustrate that yes there is if the deal offered is good enough.

Its pointless to run to the end of the PCP and find there are no deals available and you have to then pay top dollar. Its not a case of my dads bigger than your dad school yard one up-manship at all. If someone has a better deal I would be happy to cancel my order and take advantage

[cortina63]

I don't understand the above.

You say Total payable for 2 years is 6k but before this you say 24 months @ £340 which is £8160 & 36 months @ 280 which is £10080.

yes thats on pcp, plus the 20%dep then it would be added to the gfv, the current 0% is for 36 months total, the 240 x24 +1500 dep is all that I pay for 2year lease by comparison,subtract total cost of one from the other gives you the saving, compared to choping in a pcp deal early, simple maths really

Im only paying £10.9k and that's over 42 months wheres the saving? also I get the option to buy the car at the end of the term if I want. I don't think leasing has this option? I Purchased my Red VRS at the end of my finance because it was a cracking car never let me down had It 10 years now this new one might be the same I might want to keep it.

[RandomSkodaperson]

You might find a better deal before the end of the PCP. Dealers will know you won't have much time at the end to decide but if you are offered something earlier the sums might add up to move earlier than planned.

[Scribbler]

 

I don't understand the above.

You say Total payable for 2 years is 6k but before this you say 24 months @ £340 which is £8160 & 36 months @ 280 which is £10080.

yes thats on pcp, plus the 20%dep then it would be added to the gfv, the current 0% is for 36 months total, the 240 x24 +1500 dep is all that I pay for 2year lease by comparison,subtract total cost of one from the other gives you the saving, compared to choping in a pcp deal early, simple maths really

Im only paying £10.9k and that's over 42 months wheres the saving? also I get the option to buy the car at the end of the term if I want. I don't think leasing has this option? I Purchased my Red VRS at the end of my finance because it was a cracking car never let me down had It 10 years now this new one might be the same I might want to keep it.

 

 

Sorry I must be thick I still don't get what your talking about just seams like arbitrary figures.

 

Can you drop the acronyms so I can evaluate if its worth doing and stack your figures at the

side of mine so its like for like comparison. I know its like comparing renting with getting a

mortgage but it might help my sh!ty arithmetic. thanks

 

PCP

Term: 42 months

Monthly: £260

APR: 0%

Total paid: £10920

 

If you swap like I have done @ 36months then total paid back will only be £9360, which is less than what you quoted for the 36 month term.

 

I think if you read the termination conditions of a PCP as long as you have paid back 50%+ of the finance then you can hand the car back

without any penalty so I see no advantage to leasing. The residual value of the vehicle at this stage is deemed to be in line with remaining

finance. Correct me if im wrong.

[mannyo]

The 50% figure includes the balloon payment at the end, not 50% of your 36 months. You can then hand the car back without penalty, but the finance agreement is marked as an early termination on your credit report. You also run the risk of not being able to get another car through the same finance company going forward, so you may not be able to finance a car through any VW group provided finance company.

 

On a standard HP agreement with a small deposit over 3 years, the break even point is usually around 16 months. On a PCP the break even point is much later due to paying smaller monthly repayments.

[Bullit]

The 50% figure includes the balloon payment at the end, not 50% of your 36 months. You can then hand the car back without penalty, but the finance agreement is marked as an early termination on your credit report. You also run the risk of not being able to get another car through the same finance company going forward, so you may not be able to finance a car through any VW group provided finance company.

 

On a standard HP agreement with a small deposit over 3 years, the break even point is usually around 16 months. On a PCP the break even point is much later due to paying smaller monthly repayments.

I have handed a car back under 50% voluntary termination and it just showed as 'Settled' on my credit report just like I had paid it off. I have since had finance from the same company (Ford) at my same address.

[Scribbler]

I have handed a car back under 50% voluntary termination and it just showed as 'Settled' on my credit report just like I had paid it off. I have since had finance from the same company (Ford) at my same address.

 

This is also my understanding

[RapidPaul]

All cars depreciate the most in the 12 months after they roll out of the factory. Most lose 20% the moment they leave the showroom. You can fend off negative equity by putting down a bigger deposit, but that just amounts to throwing money at the problem as you'll not see that cash again. The optimum deposit for PCP is about 10-15 %.

The other option is to take out a shorter PCP on a car that's 12 months old. That way the biggest hit of depreciation will have gone and your payments are more likely to track closer to the value of the car.

Finance companies rarely mess up the GFV as it can cause a real headache for them, so having a pot of money to play with at the end of a PCP doesn't necessarily mean you've done well. It may just mean that you've been paying over the odds for your car every month so you're just getting back your own money.

Edited 12 June, 2015 by RapidPaul

[randomeclipse]

The OP's question though is if there is a window of opportunity to check out early on a PCP and im trying to illustrate that yes there is if the deal offered is good enough.

Its pointless to run to the end of the PCP and find there are no deals available and you have to then pay top dollar. Its not a case of my dads bigger than your dad school yard one up-manship at all. If someone has a better deal I would be happy to cancel my order and take advantage

I was . From reading all the comments I think I'll enjoy the car for 12 months then start to swing by dealerships every now and then and query what offers they have on that could work for me.

[octavianestate]

Crikey! You guys have all 'purchased' a skoda and are 'now' worried about depreciation!

I had no doubts when I signed up its value would plummet like ed balls popularity ratings.

If you wish for less depreciation purchase a brand at the premium end if the market and not the value end.

[randomeclipse]

Crikey! You guys have all 'purchased' a skoda and are 'now' worried about depreciation!

I had no doubts when I signed up its value would plummet like ed balls popularity ratings.

If you wish for less depreciation purchase a brand at the premium end if the market and not the value end.

I'm not worried at all, I was just interested to hear if there was a good time to look to swap the car for a different one at any point during the PCP contract.

[Scribbler]

Crikey! You guys have all 'purchased' a skoda and are 'now' worried about depreciation!

I had no doubts when I signed up its value would plummet like ed balls popularity ratings.

If you wish for less depreciation purchase a brand at the premium end if the market and not the value end.

 

 

Your post is laced with irony possibly even an oxymoron. You use the word 'Value' but in the same sentence say that a premium brand depreciates less than a value brand.

Value implies value for money so this should be little depreciation. Monetarily A high premium brand will depreciate more than a value brand the curve might be different.

but if the starting point is £40K for a premium brand and £20 for a value brand then im pretty sure in 20 years time all things being equal they will both be worth sub £1k hence

the premium brand has depreciated more. My finding having owned many brands is that Skoda does pretty well in terms of depreciation. However I would argue that they have

crept out of value brand territory and heading for premium which is the wrong strategy seeing as VAG have VW and Audi in this category.

[octavianestate]

I agree. I feel skoda are trying to punch above their weight in a niche with a glass ceiling.

Personally they should remain offering good rival products to vauxhall and ford, and, keep the world's taxi fleet moving.