Fabia Mk3 - PCP or cash?

[Skogar]

Hi All

 

Been looking to part-exchange my 2011 Fabia Elegance for a new Mk3 SE L. Went to my local Skoda dealer today and with my optional extras got to a retail cash price of £17k.

 

I bought the last one with by part-exing my old Peugeot and then getting a 0% loan for the balance, long since paid off. Was quite surprised that that sort of thing was no longer on the table, and the dealer only seemed to be offering 0% Solutions PCP now.

 

Dealer offering £500 deposit discount (essentially cashback?) plus free gap insurance worth say another £500. So £1,000 'off' but only when going for PCP. I could pay cash for the balance, but that would mean me paying £1k more overall which doesn't seem sensible.

 

Obviously the £1k of sweeteners is get me to go with PCP. If I did I'd just max out on the monthly payments over the minimum period (18 months) and then pay the smallest possible purchase fee at the end (£900 on my illustration).

 

As long as I end up owning the car outright after 18 months I'll be happy, but just wanted to check with others whether there are any pitfalls or other considerations I should bear in mind?

 

Thanks for your help.

 

Rob

 

[Skogar]

P.S. If I'm allowed a supplemetary question to my own post, I've just found some threads on here mentioning carwow. Would they be any use in my situation?

[Exeterj]

P.S. If I'm allowed a supplemetary question to my own post, I've just found some threads on here mentioning carwow. Would they be any use in my situation?

 

 

In terms of the PCP - I'm  not sure whats best other than to say whatever works out as the minimum overall payment. Would you take the gap insurance anyway, if not then you need to ignore this in your decision.

 

Not put out your own cash sounds good, if the costs end up the same but I suppose the other thing is if you are proposing any other things on credit - e.g. remortgaging, as it would help not to have credit i guess (but clearly this is dependant on your personal financial position).

 

In terms of carwow - no harm, all it does is goes goes out to a load of dealers to see who is offering the best quotes. Always worth costing up on drivethedeal.com also as at minimum this gives you an idea of what discount you can aim for with your local dealer.

[kevberlin]

One question I think you need to answer ( and I pose it truly not knowing the answer myself):

Why does the seller prefer you to buy via PCP than cash? Logic says that this will maximise his/her potential benefit, thereby reducing your potential benefit.

[Skogar]

Thanks Exeterj and Kevberlin.

 

Yeah, I did wonder why the salesman was pushing PCP so hard when I'd made it clear that cash payment was an option. As you say, there must be something in it for them.

 

I was going to get gap insurance anyway, so that is a tangible benefit if it was free. But it all hangs on the overall deal, of course.

 

Anyway, I've now registered my details on Carwow so looking forward to see if anything comes of it. Also looked at drivethedeal but I didn't get Skoda offered as a choice in the dropdown menu.

 

 

 

 

[loskie]

I think you are over valuing the gap insurance.

Get a quote here;

http://moneysupermarket.gapcoverinsurance.co.uk/

[Skogar]

I think you are over valuing the gap insurance.

Get a quote here;

http://moneysupermarket.gapcoverinsurance.co.uk/

Yes, you're right. I didn't realise you could shop around for it!

[loskie]

it's a huge commision earner for the salesman with an unwary buyer. I am sure had you taken up the "free" gap you would see it on the invoice with some bs explanation from the salesman.

Edited 11 October, 2015 by loskie

[RS939]

I think you will find there is £1000 off the MY15 cars at the moment. Clearly clearing the decks for the MY16. 

[Skogar]

Got my Carwow quotes today, ranging from £400 saving up to £1,700. All the quotes are cheaper for cash than for PCP, whereas my local dealer was £500 more for cash.

 

So I am actively thinking about going down this route instead of my local dealer.

[kevberlin]

Got my Carwow quotes today, ranging from £400 saving up to £1,700. All the quotes are cheaper for cash than for PCP, whereas my local dealer was £500 more for cash.

 

So I am actively thinking about going down this route instead of my local dealer.

..................so, unsurprisingly, cash has enabled you to maximise your benefit. Well done. Hope you enjoy your new car. Interesting little thread too.