Opinions on the new finance deal...

[Guest]

Hey,

 

I was at a dealer today getting a PCP quote on a new Octavia VRS 2.0 TSI (metallic paint) with their offer on the website. 

 

£5500 for my Monte Carlo.

-£1500 outstanding finance left on the monte.

+£1000 of my own money.

 

£2K Skoda contribution. 2 years servicing. 12K miles a year on PCP for 3 and a half years.

 

£239 a month was what they quoted. Good deal or not? I have never went PCP before, my current Fabia is on HP. 

 

Would love to hear members opinions.

 

Cheers,

 

 

Stu

 

[JaminWales]

Do you need the 12k a year miles?

[BA Baracus]

What I would do is try and get the metallic for free, get 6pc off list price and switch to a diesel. The monthly payment may drop by another £30 or so.

[Defenderben]

Difficult given the limited info: questions really.

1. What is the trade book value of the Monte (mileage/condition)?

2. What is the price of the Octavia they are offering?

3. What is the GMFV or GFV?

4. Are you happy with the deal?

Given the threads on here of the horrific depreciation of the MK3 is it a good idea at all( not sure if it is model specific I.e. vRS)?

Get yourself on carwow etc and get number crunching, that will give you some examples out there to see if the numbers stack.

Edited 14 May, 2016 by Defenderben

[jonro2009]

What is the APR? Is that the first figure they have given you for he finance? In my experience the finance guys can tweak the APR to bring payments down. Also, do you intend to give the car back and walk away at any point or would you intend to keep the car and settle finance as you are on the monte? If you plan to do the latter then decrease the mileage to about 6-8k per year that will bring payments down. It won't effect the service plan as that is done in years or miles. If you are doing 12k a year then when it comes to chopping it in you still have a car with appropriate mileage for the age.

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[glosrich]

You need to get a big discount on the VRS as they depreciate heavily. You'd likely be in negative equity at the end of the PCP, so don't expect on deposit left towards a new car.

If you fancy a bit of fun for a couple of years a PCH deal will probably work out cheaper, just hand it back at the end and walk away.

Simpsons Skoda do good PCH deals.

[Guest]

Do you need the 12k a year miles?

I do around 10K miles a year just back and forth from work so I added a little extra. 

 

Difficult given the limited info: questions really.

1. What is the trade book value of the Monte (mileage/condition)?

2. What is the price of the Octavia they are offering?

3. What is the GMFV or GFV?

4. Are you happy with the deal?

Given the threads on here of the horrific depreciation of the MK3 is it a good idea at all( not sure if it is model specific I.e. vRS)?

Get yourself on carwow etc and get number crunching, that will give you some examples out there to see if the numbers stack.

1. Monte is on spot with the valuation they gave going off some websites, I've been the only owner and its got a full dealer service history. I could possibly get a extra 1K selling it privately? 

2. Book price of £24K I believe for the VRS TSI.

3. £8500 is the GFV. 

4. I'm very unsure so maybe that is a sign. 

 

I have seen second hand VRS for much cheaper than brand new, so its if I should wait until the end of the year when my Monte will be paid off on the HP its on and then PX against a second hand VRS.

 

I haven't used carwow before, do they give you the best price on a brand new car then could apply Skoda's finance deal to the price of car they are offering?

 

Thanks all for the advice.  

[Guest]

What is the APR? Is that the first figure they have given you for he finance? In my experience the finance guys can tweak the APR to bring payments down. Also, do you intend to give the car back and walk away at any point or would you intend to keep the car and settle finance as you are on the monte? If you plan to do the latter then decrease the mileage to about 6-8k per year that will bring payments down. It won't effect the service plan as that is done in years or miles. If you are doing 12k a year then when it comes to chopping it in you still have a car with appropriate mileage for the age.

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2.2% APR on the PCP deal I believe. 

 

http://www.skoda.co.uk/finance/finance-offers/octavia/pages/default.aspx#vRSHatch

 

Its this deal here. I would intend to keep the car for the full 3 and a half years, then PX against something else when the time is up. 

[DarrellGB]

Sell your Monte privately, go for a contract hire deal, put £1500 in as initial and you'll be paying the same if not less per month for the same car and you get to pocket the difference

[GoneToBeemer]

If I were you I'd put as little deposit in as possible - it's your money and essentially you're just throwing it away...far rather have it sat in my bank account.

I got my L&K on PCH and only put £500 down, and that was only because I had to pay that to secure the car anyway so just put that into the deal.

[kevberlin]

Sell your Monte privately. Buy a used Octavia.

Or

Line dealers pockets

[glosrich]

http://www.simpsonsskoda.co.uk/new-car-offers/230/

[SurreyJohn]

Your Px plus cash is £5000, you are then paying out just over £10,000. (42 x £239).

Your proposed car is £24k and they are giving a deposit contribution (ignore the fancy name, think of it as discount) of £2k

So you have £24k car less £2k less £5k deposit and paying £10k equals £7k

Do you feel happy with a car worth about 28% of list price in 3.5 years time

What is the option to purchase price (money you still need to find to buy it) vs the £7k you haven't yet paid for in month 42

Should be obvious if the deal makes sence. To me I think you will find a bigger discount from broker and a loan under 3% found on Internet might be better deal.

If you have already decided it goes back in 3 years look at PCH not PCP

[silver1011]

If you have your heart set on a vRS then this is what I'd do:

 

Sell the Monty privately @ £6,500

 

Pay off the finance @ £1,500

 

Take the £5,000 plus the £1,000 you had planned to put into the deal and stick £4,700 of it in an ISA.

 

Use the remaining £1,300 as a deposit on this PCH deal...

 

http://www.parkvehicles.co.uk/skoda-offers/view/1110/Skoda-Octavia-20-TDI-VRS--pound179PM

 

Then pay £215 per month for 23 months.

 

After 2 years throw the keys back and either do the same again or try something different.

 

The deal costs £6,230 in total (no fee).

 

I'm guessing a £24,000 vRS will be worth much less than £17,770 at two years old so essentially you are paying less than the car will depreciate?

Edited 14 May, 2016 by silver1011

[FlyingGecko]

Ditto all the answers above.

I'd just add don't go for a higher mileage than you anticipate. Any extra mileage cost at the end -  unless you seriously exceed the deal figure - will be very £££low hundreds at worst. Play with some figures.

[silver1011]

Agreed, on a lease always go with the low mileage and pay the excess at the end. Volkswagen Financial Services (all Skoda, SEAT, VW and Audi finance) mostly charge 7 pence per mile inc. VAT.

 

It is quite often cheaper to go for a 5,000 or 8,000 mile lease even if you know the annual mileage will be higher and pay the lump at the end.

 

Quite a few people have even been known to contact VWFS halfway through and agree a higher mileage with a discounted excess pence per mile.

 

You should always do the maths first though to be sure.

[Guest]

Thanks all for the advice I really do appreciate it. Some solid advice and I have plenty to think about.

Off I go to have a think and work out the numbers.

[ColinD]

Have a quick read of the link in my signature.

 

2 reasons, 1 a car buying service which might better your part ex. The second is possibly a better deal on the new car too

 

But definitely crunch the numbers. Especially future values! Which of course no one can predict. A future guarantee value is an insurance, but you'll pay for it in some way. 

 

The Octy vRS is a good step up and has a great road presence. See if the monthlies work out

[GoneToBeemer]

If you have your heart set on a vRS then this is what I'd do:

Sell the Monty privately @ £6,500

Pay off the finance @ £1,500

Take the £5,000 plus the £1,000 you had planned to put into the deal and stick £4,700 of it in an ISA.

Use the remaining £1,300 as a deposit on this PCH deal...

http://www.parkvehicles.co.uk/skoda-offers/view/1110/Skoda-Octavia-20-TDI-VRS--pound179PM

Then pay £215 per month for 23 months.

After 2 years throw the keys back and either do the same again or try something different.

The deal costs £6,230 in total (no fee).

I'm guessing a £24,000 vRS will be worth much less than £17,770 at two years old so essentially you are paying less than the car will depreciate?

+1 for this.

There generally isn't much movement on PCH deals from the dealers though as they make next to nothing - they get a flat fee from VWFS. Still, worth trying to get some money towards that deposit, otherwise looks like a good deal!

[fgaffney]

I haven't used carwow before, do they give you the best price on a brand new car then could apply Skoda's finance deal to the price of car they are offering?

 

Also have a look at Drive the Deal and OrangeWheels who I found offered cheaper cars than CarWow.

 

You can get cheaper still by going through UK Carbroker, however you won't be legible for Skoda's Finance. Great if you're financing the car using alternative means as huge savings can be made on list price.

Edited 16 May, 2016 by fgaffney

[mork23]

If you have your heart set on a vRS then this is what I'd do:

 

Sell the Monty privately @ £6,500

 

Pay off the finance @ £1,500

 

Take the £5,000 plus the £1,000 you had planned to put into the deal and stick £4,700 of it in an ISA.

 

Use the remaining £1,300 as a deposit on this PCH deal...

 

http://www.parkvehicles.co.uk/skoda-offers/view/1110/Skoda-Octavia-20-TDI-VRS--pound179PM

 

Then pay £215 per month for 23 months.

 

After 2 years throw the keys back and either do the same again or try something different.

 

The deal costs £6,230 in total (no fee).

 

I'm guessing a £24,000 vRS will be worth much less than £17,770 at two years old so essentially you are paying less than the car will depreciate?

Forgive my ignorance but how does this particular deal work with being business use?  Can you still use this for personal or do you need to qualify for it through a business 'allocation'?

[silver1011]

All deals are available as personal too, simply add the 20% VAT to all quoted numbers.

 

This website is simply a fronting site for a franchised main dealer so there is no broker fee either.

 

I just bought my MkIII Scout from them and it was a faultless process from start to finish.

[mork23]

All deals are available as personal too, simply add the 20% VAT to all quoted numbers.

 

This website is simply a fronting site for a franchised main dealer so there is no broker fee either.

 

I just bought my MkIII Scout from them and it was a faultless process from start to finish.

 

Thanks muchly!  The Lexus offer on there looks rather interesting.

 

IS300h Sport

 

£1500 down, £260 a month!

[silver1011]

It might have been the usual salesman bravado but the guy I dealt with said they were leasing the Scout to me at cost price. I literally rang around 20-30 other brokers and direct to Skoda franchised dealers and none could get to within a tenner of the Parks deal.

 

They apparently weren't making any (or very, very little) money on my deal, but instead gained from the rebate offered from Skoda UK when hitting their targets on volumes.

 

Indeed the £149 for the Scout when I signed up a month or so ago is now £199.

[studarude]

I went for the PCH option on mine as i liked the idea of paying a cheaper monthly and just handing it back at the end. 

 

Just FYI, my local dealer managed to better the current Simpsons PCH deal by a couple of quid, and contributed to the deposit for me to keep the numbers right. 

 

On a VRS manual estate i got it down to the usual £2190 deposit (my dealer contributed £390 to this,on paper it was £2580) and £206 a month, which after months of looking around at all sorts of cars seemed to be the best bang per buck.