Hi guys,

 

Looking at trading in my 08 Fabia for a new Octvia on PCP Finance. A little confused regarding the GMFV though.

 

Is this the value that is used as the deposit for the next PCP agreement? Or is it the market value/trade-in value minus the GMFV?

 

The salesmen also said that mileage would not be factored in unless handing keys back.

 

Wondering if anyone here went this route for Finance and had any idae about this?

 

Cheers,

 

 

Sorry, not an answer.

But maybe you can help.  I see you are in Ireland.

 

?

Which Car / Engine are you getting?

Did the salesperson say anything to you about 'Irregularities' with Euro 6 Emission VW / Skoda engines and possible changes 

to VED class, and VW Awaiting Test results and changes to Tax Liabilities etc?

 

cheers.

Hi, I am looking at the Octavia 1.6 Diesel 90BHP. The salesperson did not mention anything about the VW group emissions issues. I wouldn't have thought that this will affect future tax liabilities though.

Very good explanation here -

http://www.icalculator.info/terminology/GMFV-final-payment.html

Only on the cars on the list of 2016 VW Euro 6 Engine vehicles being investigated for Irregularities in Co2 Testing and Certification.

Maybe the Engine you are looking at is not on that list.

EDIT.

It is not,

Just the 110 & 184 ps TDI's

List+of+critical+CO2+vehicles,+model+year+2016 (1).pdf

Edited 23 November, 201510 yr by goneoffSKion1

I imagine the deposit carried over is the difference between the trade-in value and the GMFV. Effectively the baloon payment is paid off and the left over is used for new deposit?

Thanks Pooch

By this, it is the equity built up in the car minus the GMFV. Which are very close in reality so the deposit would be miniscule.

 

Any here one go this route for finance? My suspiscions of being too good to be true may be correct.

By this, it is the equity built up in the car minus the GMFV. Which are very close in reality so the deposit would be miniscule.

Any here one go this route for finance? My suspiscions of being too good to be true may be correct.

It is what it is - the only certainty with buying a new car is that it depreciates like a lead balloon.

I walked into a Skoda dealer, paid £500 deposit, and got a brand new car on pcp. At the end of the 42 months I will have paid approx £9k (at 0%), choice then to give it back, trade or pay the GFV and keep it. It's not for everyone but I would rather have a modern, reliable, warranty covered car, with free breakdown cover, than suffer unpredictable repair bills that you risk with anything over 3 years old.

I should add that my pcp is based on 5000 miles a year but I do 20000 miles a year, but I wanted the lowest possible monthly payments.

Edited 23 November, 201510 yr by classic

You take the car on PCP.

You pay a deposit, make your payments and at the end there is an outstanding (balloon payment) amount to buy the car outright  or you can hand back with (usually) a guaranteed value which will normally just cover the balloon.

 

When I did mine on an Octy after 3yr the was nothing left to put down as a deposit because the dealer immediately offered me bottom book as a trade in. Even If I'd got top book it still wouldn't have been enough to PCP a new car.

 

So on one hand not a great deal but on the other I got 3yr of cheap finance. I took a bank loan and paid the car off that way.

 

You need to do your sums now to see if it is actually a good deal or not.

Thanks guys. A lot to weigh up.

I should add that my pcp is based on 5000 miles a year but I do 20000 miles a year, but I wanted the lowest possible monthly payments.

If you hand your car back you will have to pay a couple of thousand is penalties for going over your mileage allowance.

And, should you have any equity left in the car after the loan period but hand the car back you lose it all!

So many more folks, me included, are looking at personal contract hire (pch) as you always have to hand the car back and you know exactly where you stand financially.

If you hand your car back you will have to pay a couple of thousand is penalties for going over your mileage allowance.

It works out that the penalties add up to what the extra monthly payments would have been for a 20000 mile per annum pcp, but I keep the money until that date. You have to budget doing it this way but I felt (for me) it gave more options than pch.

And, should you have any equity left in the car after the loan period but hand the car back you lose it all!

So many more folks, me included, are looking at personal contract hire (pch) as you always have to hand the car back and you know exactly where you stand financially.

I stand to be corrected, but you still have to pay penalties for going over mileage and don't get anything back for being under mileage with pch. You also don't have a guaranteed choice to buy the car and if you wanted to buy it you have to ask them for a price at the end of the lease, and with skoda pch they can't sell it directly to the hirer.

Edited 23 November, 201510 yr by classic