Another issue to hit diesel resale values is the life span of a DPF, from 120,000 miles a DPF could need changing and will need monitoring for total fill level.

 

Over time the VW gate will go and VW residuals will rise a bit, at the moment WBAC and a like are taking advantage.

 

At the end of my PCP I might change the car it will have around 35000 on the clock, more likely I will buy the car and keep running it.

Another issue to hit diesel resale values is the life span of a DPF, from 120,000 miles a DPF could need changing and will need monitoring for total fill level.

Over time the VW gate will go and VW residuals will rise a bit, at the moment WBAC and a like are taking advantage.

At the end of my PCP I might change the car it will have around 35000 on the clock, more likely I will buy the car and keep running it.

Just playing devils advocate but if it ends up being worth far less than the GFV would you bother?

Im now resigned to keeping mine either to the end of term and handing back....or maybe VT'ing it as soon as 50% of the finance is paid off....only be a few months of the term to run at that point but I might just do it as a matter of principle if I can be bothered to...might save me £1.2/1.5k's worth of car payments too.

lots of worry over nothing imo.

Cars drop in value, so what. If I end up handing it back then it's still very cheap over the term for what it is.

If you are worried the GFV should be lower just pretend it is and put 50 quid a month in a savings account each month.

Just playing devils advocate but if it ends up being worth far less than the GFV would you bother?

Im now resigned to keeping mine either to the end of term and handing back....or maybe VT'ing it as soon as 50% of the finance is paid off....only be a few months of the term to run at that point but I might just do it as a matter of principle if I can be bothered to...might save me £1.2/1.5k's worth of car payments too.

If the car is worth less than GFV so what, it's the way I decided to finance the car. I wil pay the finance off and keep the car another three or more years. 

 

From the times "You will also need to be careful about buying a diesel car right now, in light of the impending tax changes set out above. Due to the higher government levies, diesel cars are likely to become less desirable in the coming years, reducing their resale values across the board." http://www.driving.co.uk/car-clinic/advice-diesel-or-petrol/

I wouldnt pay more on the baloon than the car is worth trade but thats just me.

VWFS took a punt on the used values of the O3 being similar, if not a little better than the Mk2 for GFV purposes and seemingly are well off the mark.....what they really should be doing is reviewing new finance deals to make sure the GFV is reflective of what the car is likely to be worth not just a figure out of the air...they had to do so initially but they should be changing it to suit now....but they wont because it will make the cars more expensive to finance and put off customers....also locking people into deals has its advantages...they will probably pay dearly for it though as Andyvee said when many of the 3 year deals end and people just give the cars back as they wont want to pay the baloon.

To the OP.....simple answer to your question is that the residuals of the O3 are poor....no one can argue that one. Its a good car no question but it could bite you depending on how you finance it/how long you keep it.

My only concern is diesel cars will be legislated against, tax on fuel, low emission zones etc.

Car bought on pcp in 2014, I am making payments based on 5k pa but doing far more. The pcp allowed me to buy car with minimal amount of my own cash for 3.5 years. Balloon in October 2017 is £9.5k.

My original intention was to pay that balloon and to keep car for 10 years (200k miles), works out to £158 per month,assuming it is worth nothing at that point.

What I don't want to do is buy the car in 2017 only to find in 2020 that diesels are hammered by legislation making it more expensive to run and impossible to sell.

In terms of value being low before the end of the pcp, that was always going to be the case. The only 2 days where the cars actual value meets reality are day 1 at the point you accept it and the last day of the pcp if it's good condition (as defined by finance company), and within the agreed mileage.

Totally agree with the worries about legislation. The scandal hit shortly after I ordered my car and even though I like the car I can say I wouldn't have ordered it if I'd known. I would have probably got a Golf GTE.

On PCP GMFV's are set to be pretty accurate, but if the car is worth less, then the finance company lose out and you hand the car back. Dealers may say there will be equity in the car but you certainly won't see much.

 

IMO if you want to drive a new car every couple of years, then PCH is the way to go. The only downside is if you want to add lots of extra's, then it's not so good as you pay for them over the term.

WBAC £10600 for my 2014 Elegance 150 TDI with 42k on it. Paid £21000 with a few options and extended warranty

Plan at purchase was to run into the ground so was not considering the risduals. I always thought if losing less money on VAG goods was a concern you needed the prettier Frocked models with vastly more upfront cost. Certainly was the case when I pcp a Golf in 2011

Edited 15 December, 201510 yr by Stuski