Curious to Monthly Payments

[Osborne]

A 230 vRS is more like 29700 not 19700 and you won't get 30% discount

[CanaryAndy]

http://www.broker4cars.co.uk/Buy/New_Car.jsp?capID=72620&dt&utm_source=Car2Buy&utm_medium=ClickMarketing&utm_term=OCTAVIA_HATCHBACK&utm_content=ExternalComparisonSite&utm_campaign=Cars2buy

[SurreyJohn]

Those are some huge deposits you guys are putting down. Are you planning on keeping the car at the end of the PCP?

If you have money for a deposit then it comes down to opportunity cost of the alternative leaving it in bank (which won't earn much) vs higher monthly amounts.

Inevitably the total of the deposit and the monthly payments will come to similar amount, with actual differences being the interest.

Leaving money in bank to pay balloon payment can earn you more depending on your attitude to risk, it's quite easy to get 5% per year on a corporate bond, but if company fails might lose it all.

I know one person who put money in an EiS scheme having picked one most likely not to lose money. Got 30% back in a month (it's a tax credit which means you can ask for that amount to be refunded from HMRC upto the total you have paid in income tax in last 2 years) waited just over 3 years (minimum for EIS) then got is money back and bit of profit in 4th year (so had 150% of what he put in (30% tax refund, 20% profit and his investment) and the gain was tax free. Of course could have lost 70% (will always get 30% credit) or had a bigger profit if it did better, how it will do is unknown as it is a risky investment. So made about 12% per year (and saved tax which most of us hate paying)

Edited 28 May, 2016 by SurreyJohn

[Skully]

Those are some huge deposits you guys are putting down. Are you planning on keeping the car at the end of the PCP?

I'm keeping mine and traded my Monty in as the deposit.

[jonro2009]

I think the deposit just helps provide a stable monthly payment based on your monthly income. The 430 a month is affordable for me, but with 2.5k deposit including Skoda, I don't understand why it's higher than most people.

Bit odd. If I decide to go for it (vrs 230) what shall I hassle them for?? The standard full tank fuel, mats, spare wheel??

What is the price of the car you are financing? What interest rate are they giving you? What is your annual mileage allowance? What is the term of the finance? These are all big factors on your monthly payments. What is the Skoda allowance, is it £2k? If you are putting 500 in of your own hard earned then personally I wouldn't bother and I would use it elsewhere. £500 makes very little difference to the monthlies but would go a long way towards a service plan or dash cam etc.

Ask them for things that are dealer extras, mats, flaps, fuel, service plan, load liner, spare wheel...

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[Dr Zoidberg]

I think the deposit just helps provide a stable monthly payment based on your monthly income. 

 

It does, but if you can only afford £300 a month for example, and have to shove in several thousand deposit to get it down to that, what happens at the end of the term? You won't have much equity to use as a deposit for the next car, and won't have been able to save for a new deposit. 

[flyingpigvrs]

Ouch!!

Some of these figures make my eyes bleed.

Are you guys on a pcp with £10k final payments actually going to pay it and keep the car?

My pch deal was £2100 down (£1500 from me £600 dealer contribution)

8000 miles a year

Vrs tdi DSG

£223 a month for 35 months.

[dsj20v]

http://www.broker4cars.co.uk/Buy/New_Car.jsp?capID=72620&dt&utm_source=Car2Buy&utm_medium=ClickMarketing&utm_term=OCTAVIA_HATCHBACK&utm_content=ExternalComparisonSite&utm_campaign=Cars2buy

Anyone know if these are uk cars as such because thats blindingly cheap , poss same as the motorpoint selling cypriot imports etc Edited 28 May, 2016 by dsj20v

[YorkaBara]

What is the price of the car you are financing? What interest rate are they giving you? What is your annual mileage allowance? What is the term of the finance? These are all big factors on your monthly payments. What is the Skoda allowance, is it £2k? If you are putting 500 in of your own hard earned then personally I wouldn't bother and I would use it elsewhere. £500 makes very little difference to the monthlies but would go a long way towards a service plan or dash cam etc.

Ask them for things that are dealer extras, mats, flaps, fuel, service plan, load liner, spare wheel...

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The price of the car is the 230 vRS, I was going to go for the 220 but by the time I added options, 230 was cheaper as they had it as standard. The 230 is 27000 with 2k from Skoda & 2.6% interest, quoting me at 430. Reading some of the posts i don't understand how people are paying 260-360 I wouldn't think sticking an extra 3k in deposit would affect it that much?

I am able to afford the 430 a month, it's a car I've been dreaming of for a while as it's an all round good car, I've seen the reviews and it's exactly what I want. Regardless if I stick more money on the car to reduce the payments at the end of the period I would of given the same amount of money.

[CanaryAndy]

Anyone know if these are uk cars as such because thats blindingly cheap , poss same as the motorpoint selling cypriot imports etc

 

dsj20v, it was me who used this as an example to show there are other routes to ownership other than PCP. I am just about to order a VRS DSG Diesel from a broker - my dealings to date have actually been with John Robertson at New car discount and reviews would back up as a good service - 20% discount, not pre registered and supplied to leadtime from a UK dealer. Another one worth a shout is Varissa - they are more hands on and on the face of it would be a good bet also. I mentioned 20% from them and they said no problem and would be able to beat in the event of me being ready to place an order. These cars are not imports but cannot speak about my example that was quoted.

 

Try  http://www.cars2buy.co.uk/ to compare deals.

Edited 28 May, 2016 by CanaryAndy

[Paul007]

Freedom is his subscription, not username, that's dsj20v....

[CanaryAndy]

Freedom is his subscription, not username, that's dsj20v....

Changes made....

[silver1011]

It does, but if you can only afford £300 a month for example, and have to shove in several thousand deposit to get it down to that, what happens at the end of the term? You won't have much equity to use as a deposit for the next car, and won't have been able to save for a new deposit.

Surely the equity would be the same either way.

It doesn't matter if you use a big deposit with small monthlies or a small deposit and big monthlies, the total paid over the term is more or less the same.

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[jonro2009]

The price of the car is the 230 vRS, I was going to go for the 220 but by the time I added options, 230 was cheaper as they had it as standard. The 230 is 27000 with 2k from Skoda & 2.6% interest, quoting me at 430. Reading some of the posts i don't understand how people are paying 260-360 I wouldn't think sticking an extra 3k in deposit would affect it that much?

I am able to afford the 430 a month, it's a car I've been dreaming of for a while as it's an all round good car, I've seen the reviews and it's exactly what I want. Regardless if I stick more money on the car to reduce the payments at the end of the period I would of given the same amount of money.

2.6 is a competitive rate but £430 a month is expensive regardless of if you can afford it or not. If they are selling you the car at £27K that's basically list price and they are not discounting it at all, in my experience the Skoda contribution comes after the money comes off list and I would be aiming to get at least 5-10% off that. Don't forget the £2k is not coming out the dealers profit margin they are counting on people paying list and thinking they are getting. A good deal when in fact the dealer is making maximum profit.

What is the term and contracted mileage allowance? Have you tried looking at a different dealer and start a bit of a competition, look at car wow and drive the deal they will give you an idea of what to aim for.

Having said all that it's ultimately your car, your money and your decision. If you are happy with the deal and get the car of your dreams then that's all that matters [emoji106]

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[YorkaBara]

I have managed to do my best, got it down to 399! and they will clear my existing finance from my car at Part exchange, in comes full tank of fuel, spare wheek and mats (all I really want) - going to get discounted GAP & Paint alloy protection.

Got a delivery on 1st September for my new Octavia vRS 230 in Meteor Grey!! woop

[jonro2009]

Congratulations! The wait begins.......

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[skd12]

Ouch!!

Some of these figures make my eyes bleed.

Are you guys on a pcp with £10k final payments actually going to pay it and keep the car?

My pch deal was £2100 down (£1500 from me £600 dealer contribution)

8000 miles a year

Vrs tdi DSG

£223 a month for 35 months.

 

 

For me it's the ability to have the choice at the end of the term and since my car has quite a few options so adding those on a PCH would have inflated the payments.

 

At the end of the term I can choose to give it back (not likely), trade it in for a new one or pay it off from my savings and run it into the ground.

Edited 28 May, 2016 by xdq

[AndyPetit]

VRS230 with extras. Contract hire over 2 years

3 down and £358 per month including service and maintenance on 10000 miles per annum. Car ordered but nothing to pay until after take delivery (including no deposit for order).

[fgaffney]

Money in the bank isn't going to earn you much interest these days.

 

All depends on who you bank with?

 

I'm currently getting 4% interest with Clydesdale and 6% interest with TSB. Personally I'd rather put down a small deposit and have a higher monthly payment... especially when you qualify for the 0% finance deal!

[GoneToBeemer]

Completely agree, and PCH is definitely the best way to go about it too.

I paid £500 deposit, and £386 per month over 3 years on my L&K 2.0 150 DSG, 20k miles per year - a great deal I think!

[silver1011]

There are no 0% deals on PCH so the amount of deposit put down makes very little difference to the total price paid. It really comes down to whether you prefer bigger or smaller monthly payments.

 

If you have the money in the bank there is little advantage to sit on it with a PCH.

 

The OP put in a £2,500 deposit. Assuming the 6% interest from TSB then that is £150. I'd rather free up a few hundred quid a month over two or three years for other stuff. Each to their own.

 

To work out if a PCH deal is good value or not then add up all costs and divide over the term.

 

My Octavia Scout 150bhp manual on 8K a year was £2,500 deposit and £100 per month x23, no fees, so £200 per month all in.

 

There aren't many 4x4 estates out there right now on 8,000 miles per year for less than £200.

Edited 29 May, 2016 by silver1011

[SkodaVRS1963]

Surely the equity would be the same either way.

It doesn't matter if you use a big deposit with small monthlies or a small deposit and big monthlies, the total paid over the term is more or less the same.

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Long time lurker but first time poster so please bear with me.

 

I have seen these posts about financed deals and the various opinions and have yet to read anything that equates to my way of thinking.

 

My deal: 0% over 42 months on a VRS (with extras) costing £24,350 (in Dec 2013).

 

£5,200 down as deposit.  42 x £199.67 as monthly repayments.

 

Final payment £10,763 or jump ship.

 

I read lots of posts here about how you put down as little as possible and then you live happily ever after.

 

Ok, let's plug the numbers in:

 

£500 down as deposit.  42 x £311.59 as monthly repayments.

 

Final payment £10,763 or jump ship.

 

Either way your final decision is the same?  The only difference is whether you keep £4,700 in your bank account earning you £4.70 a year interest by paying a lower deposit or save yourself £112 a month for 42 months on repayments.

[silver1011]

That's how I see it too.

 

It really comes down to personal circumstances and whether you prefer to have money under the mattress for a rainy day or more money after each payday.

[fgaffney]

I'd rather free up a few hundred quid a month over two or three years for other stuff. Each to their own.I thought lo

 

Surely you'd 'free up' a few thousand quid at the start of the re-payment period?

 

You pay exactly the same back over the 36 or 42 month period... I just budget for the higher monthly re-payments using the large deposit I tucked away into a savings account. Nice knowing it's there incase of an emergency too!

[silver1011]

Like I said, it makes no difference.

 

That's what we're trying to say, loading up a deal upfront or spreading it out via the monthlies makes no difference, it's all down to personal preference.