Yeti offers?

[logiclee]

Agreed, comes back to my original question - who is making money on the deal? PCH saves you £4000, someone has to fund that - who and why?

 

As others have said.

 

Buy cash/hp/pcp and you pay VAT at 20% on the full purchase price . On a PCH you only pay VAT on the payments so from a start that is a massive saving. In my case VAT payable to the tax man would be around £3600 on Cash/HP/PCP and £890 on PCH.

Then with PCP you pay interest on the entire cost of the vehicle including the VAT and the balloon payment and even in the last year you are paying interest on the full balloon payment.

 

So pretty easy to see why PCH works out cheaper than a PCP.

 

Lee

[Citigopher]

Interesting to note that the Simpsons webpage for the 1.4 L&K PCH deal now says "stock cars only". Sounds ominous.......

 

It's also worth remembering that any extension to the original PCH contract is at the discretion of the lender and they can also vary the terms (i.e. monthlies) for the contract extension.

 

Another note - a friend of mine, jealously eyeing the Yeti on my drive in the light of the bargain basement payments I'm making, took my number plate and got a trade in valuation on it. He got the mileage a bit out (he put 8k instead of 4.5k) but at a part exchange guide price of £17,760 (£18,720 for a private sale) at 6 months old, I'm quids in.

Edited 20 July, 2016 by Citigopher

[graham47]

How is all this affected by the zero percent PCP deals which were/are on offer ?

[logiclee]

How is all this affected by the zero percent PCP deals which were/are on offer ?

 

Zero percent on PCP should mean you pay no interest although there maybe some other fees and you still have to pay the full VAT.

 

Just ask the dealer to quote for both PCP and PCH. For our vehicles PCP worked out at £68 a month more expensive than PCH and that was with a substantial dealer contribution on the PCP.

 

Also have to factor in that although PCH deals are from Skoda some dealers like Simpsons offer a dealer contribution on PCH's which is why they are so cheap. Some other dealers like my local dealer (Rainworth) refuse to do this so their PCH's are more expensive.

 

Lee

[BobbyG79]

Interesting to note that the Simpsons webpage for the 1.4 L&K PCH deal now says "stock cars only". Sounds ominous.......

Why ominous?

[Citigopher]

That normally means the offer is coming to an end. Sure enough, when I prod around on their (Simpsons) PCH offers page, the MC Yeti has gone, as has the L&K diesel DSG and the 1.2TSi SEL & SEL DSG. Looks to me like they've nearly shifted the allocations they needed to so the offers are drying up.

[BobbyG79]

Understood.  I've actually been mulling this deal over for some time now.  What put me off initially was the fact that the offer was available only on factory orders (a few months back now) but the availability of stock cars makes it much more favourable (since I'd be trading in).

 

That said I can't seem to drag myself over the line because of this whole "not owning your own car" business!

[Great Yeti]

Nothing ominous at all!

 

Just so I could clarify this situation for fellow Briskoda members, I checked with Simpsons today (21/07/2016). All offers are by necessity, time / number limited and offers do change. They currently have three fantastic offers for prospective Yeti owners:

 

SKODA YETI 1.2TSI SE 110PS WITH ŠKODA FINANCE 'PERSONAL CONTRACT HIRE' (PCH) AT £99 PER MONTH.

This is available on ŠKODA Finance 'Personal Contract Hire' (PCH) with only a £2250 initial rental and then 23 payments of £99 per month. Mileage allowance on this example is 8000 per annum, and includes Free Metallic Paint and Road Fund Licence for two years. DSG Auto version is just £10 extra at £109 per month. (Currently plenty of stock vehicles but can factory order should you require "Extras")

 

YETI OUTDOOR 1.4TSI 150PS 4X4 LAURIN & KLEMENT WITH ŠKODA FINANCE 'PERSONAL CONTRACT HIRE' (PCH) AT £139 PER MONTH - STOCK CARS ONLY.

£2250 initial rental and then 23 payments of £139 per month. Mileage allowance is 8000 per annum, again with Free Metallic Paint and Road Fund Licence for two years.

 

YETI OUTDOOR 2.0CR TDI EU6 150PS 4X4 LAURIN & KLEMENT WITH ŠKODA FINANCE 'PERSONAL CONTRACT HIRE' (PCH) AT £209 PER MONTH.

Available on ŠKODA Finance 'Personal Contract Hire' with only a £2250 initial rental and then 23 payments of £209 per month. Mileage allowance is 8000 per annum and includes Free Metallic Paint and Road Fund Licence for two years. (Pretty much factory orders only - about 16 weeks)

 

All the offers include VAT and there are no hidden "Admin" charges. If you need more than 8000 miles per annum, this can be done with a slight change in the price, so I am told.

 

Individual links to the three offers are in the title for each vehicle. You need to contact the "Digital Sales Team" on 01772 325401 if you are interested and want to talk. I dealt with Tom Whittle, who was absolutely superb, but you can speak to Lynda - Chris or Matt. I have spoken with all of them, and will say they make a very honest and excellent team and will really try to help and ensure you get just what you want. As a good number of us here at Briskoda, who have taken up the offers, will attest to.

 

Anyway - I hope this helps some of the members here who are currently contemplating a change of vehicle...............................Tony (Awaiting our build date for a new 1.2 TSi - DSG in Moon White - Roll on 1st of September?)

 

PS: If you are wondering about the relative merits of PCH / PCP. Try this recent thread = PCH / PCP - Advice / Experience? It may help answer some of your questions.

 

PPS: Just in case you are looking for a different variant. Here is the LINK to the offers on the whole ŠKODA range..............(Happy Hunting)

 

Edited 21 July, 2016 by Great Yeti

[logiclee]

Understood.  I've actually been mulling this deal over for some time now.  What put me off initially was the fact that the offer was available only on factory orders (a few months back now) but the availability of stock cars makes it much more favourable (since I'd be trading in).

 

That said I can't seem to drag myself over the line because of this whole "not owning your own car" business!

 

You need to change your thinking.

 

Owning your own home is good.

 

Owning your own car means (For us mortals at least) you own a depreciating asset. The only question is how much will you loose? How much will the time you have the car cost you?

 

So you need to know the amount of time you will "Own" your purchased car and work out the expected depreciation.

 

From that it's a simple financial calculation, what is the best way to spend your money and drive the vehicle you want.

 

Why would you spend £24k on a car that will loose £14k in 3 years when you can get a PCH for half of the depreciation cost?

 

Lee

Edited 21 July, 2016 by logiclee

[ernieb]

My concern about PCP/PCH deals is that if I want a car that is not stocked as a replacement when the contact is finished and I get into a similar situation that many have faced with Skoda, delayed build/ delivery, then I'm stuck without a car?

[john999boy]

My concern about PCP/PCH deals is that if I want a car that is not stocked as a replacement when the contact is finished and I get into a similar situation that many have faced with Skoda, delayed build/ delivery, then I'm stuck without a car?

The PCH companies are usually quite relaxed about extending the contract on a monthly basis. PCP may be another kettle of fish though.....

[ernieb]

The PCH companies are usually quite relaxed about extending the contract on a monthly basis. PCP may be another kettle of fish though.....

Thanks for that information, that would work for me. I wonder if anyone has experience with PCH?

[BobbyG79]

You need to change your thinking.

 

I understand what you're saying, but my current situation is thus:

 

I have a 2009 Yeti 1.2 TSi on 56k, it's probably worth £6-6.5k on trade in (which I'd be looking to do as opposed to private sale)

 

I still owe £3,500 on a loan I took out to finance the car initially (when I bought it in 2012 for £12,500)

 

I've always had it in my head that I would keep the car beyond the completion of any finance so that I enjoy a period of "free motoring", however I believe I'm currently in a bit of a "sweet-spot" with regards to the car's value vs what I owe.  The plan has always been to buy a new-shape Yeti following it's release in 2018 or so.

 

So the quandary is do I keep the car until 2018+ or trade it in for a 2yr PCH???!!! 

[logiclee]

I understand what you're saying, but my current situation is thus:

 

I have a 2009 Yeti 1.2 TSi on 56k, it's probably worth £6-6.5k on trade in (which I'd be looking to do as opposed to private sale)

 

I still owe £3,500 on a loan I took out to finance the car initially (when I bought it in 2012 for £12,500)

 

I've always had it in my head that I would keep the car beyond the completion of any finance so that I enjoy a period of "free motoring", however I believe I'm currently in a bit of a "sweet-spot" with regards to the car's value vs what I owe.  The plan has always been to buy a new-shape Yeti following it's release in 2018 or so.

 

So the quandary is do I keep the car until 2018+ or trade it in for a 2yr PCH???!!! 

 

 

It's always that "Free Motoring" that screws with your head. How much a month is it depreciating? Will it need and consumables (Tyres, brakes etc)? Are you paying for breakdown cover? Will it need a major service?

 

My last Passat I bought cash and a small 0% finance (2010), it's been paid off for three years and now done 60k miles. But another two years and another 20k miles and the value is going to be rubbish, it'll need another set of tyres at £460, it's due a major service and brakes all round. Or sell it, avoid all the money I'd have to pay out, bank the money and have two+ years worry free motoring on PCH at £2190+£99 a month.

[BobbyG79]

It's always that "Free Motoring" that screws with your head. How much a month is it depreciating? Will it need and consumables (Tyres, brakes etc)? Are you paying for breakdown cover? Will it need a major service?

 

My last Passat I bought cash and a small 0% finance (2010), it's been paid off for three years and now done 60k miles. But another two years and another 20k miles and the value is going to be rubbish, it'll need another set of tyres at £460, it's due a major service and brakes all round. Or sell it, avoid all the money I'd have to pay out, bank the money and have two+ years worry free motoring on PCH at £2190+£99 a month.

 

Yeah the unknown costs are difficult to quantify....just need Simpson's to confirm if they have any silver or business grey in stock now.  If so I could well be making my way over to Colne!

 

Edit:  Just had an email and unfortunately neither of my preferred colours are available, though black magic is beginning to appeal

Edited 22 July, 2016 by BobbyG79

[SurreyJohn]

It's always that "Free Motoring" that screws with your head. How much a month is it depreciating? Will it need and consumables (Tyres, brakes etc)? Are you paying for breakdown cover? Will it need a major service?

 

My last Passat I bought cash and a small 0% finance (2010), it's been paid off for three years and now done 60k miles. But another two years and another 20k miles and the value is going to be rubbish, it'll need another set of tyres at £460, it's due a major service and brakes all round. Or sell it, avoid all the money I'd have to pay out, bank the money and have two+ years worry free motoring on PCH at £2190+£99 a month.

The two main concerns are around the changeovers in 2 years, can you get timings to match and will next one be more expensive. There is usually a little flexibility in handback date (but will probably get billed a whole extra month, even if a few days). The second is harder to judge as will be a new Yeti by then (although would it be a great hardship if had to change to a Tiguan for example, if that had a better deal).

As has been suggested aim to time it so the new car is delivered just before major service and repairs due as wont get cost of that back in part exchange or selling price (safer to time it to allow about 4-6 weeks spare, in case of build delays).

If you have about 4 months, and can accept factory order, then a couple of companies are offering deals at £1323 plus 23 x £127 which is about £200 cheaper than Simpsons (Solent vehicle leasing and Central (UK) vehicle leasing). Haven't checked for fees or any cost options. But any deal averaging under £180 per month including VAT is very good.

Deals come and go depending on take-up, but normally if you request a quote the price will hold for 14 days so you get a few days to decide. Some special offer deals are much better than normal deals so can be bit of a waiting game for best deals to appear, when they do cant dither too long.

One quick method of comparing is to take the total amount payable, convert it to average per month.

To compare value take the list price and divide it, eg £21000 / £2200 average per year = 9.5 years, the longer the number of years the better the deal (use this if comparing different models, but it ignores the fact that some features you might not need). It does show that adding options is expensive under PCH as you often pay for 100% of option cost in 2 or 3 years.

[logiclee]

If you have about 4 months, and can accept factory order, then a couple of companies are offering deals at £1323 plus 23 x £127 which is about £200 cheaper than Simpsons (Solent vehicle leasing and Central (UK) vehicle leasing). Haven't checked for fees or any cost options. But any deal averaging under £180 per month including VAT is very good.

 

 

Searched around all the brokers before I went with Simpsons 2190+ 23x£99 deal. Many appear cheaper until you factor in fees and metallic paint and some charge you road tax. All included at Simpsons 

Edited 22 July, 2016 by logiclee

[Great Yeti]

 It does show that adding options is expensive under PCH as you often pay for 100% of option cost in 2 or 3 years.

Not so with Simpsons PCH deals. We specified several "Extras" when we ordered our new Yeti and paid nothing like what you are quoting. 

 

It has been pointed out in another thread here on Briskoda, that "some" extras do add residual value to a vehicle when it comes to resale. (In fact, if I remember correctly, there was a list of prices / residual values etc in that post.) It alludes to the fact that there is a trade-off between cost and the residual value at handing the vehicle back / resale. This difference is what is set against the PCH. You are given the option of varying / accepting the quote or not. In our case the option extras were worth it for us and we accepted the small uplift in cost.....................Tony

[Nick P]

I think a good model to follow, if you have two cars in your household, is to have one car on a two year lease and for the other car, have something fairly old but relatively interesting, that's done the vast majority of its depreciation already, which you own outright. In my case that's my Volvo T5.

 

This minimises your exposure to depreciation and gives you some continuity. In our household we could technically manage nearly all of the time with just one car, but having the second car is a great luxury and it means when our main car lease is up, we can shop around for the best deal on the next lease with much less pressure on the timing.

Edited 22 July, 2016 by Nick P

[CanaryAndy]

Also looking at the Simpsons PCH deals (once got the head around a long term rental rather than ownership!) Looking at the 4X4 DSG in various forms but 15000 per year. L&K would be the best value (I've amortised the £2250 over the 24 month hire for ease of comparison).

 

Your quote is as follows:

 

Offer type: Personal Contract Hire (£338.13/month) 
Mileage per annum: 15000
Model: New Skoda Yeti Outdoor SE 2.0 TDi 4x4 150ps DSG - Free Metallic or Solid Paint
Initial rental: £2250

23 x monthly rentals of £255 (inc. DAB Radio, Space Saver Spare Wheel) 

Or

Offer type: Personal Contract Hire (£354.42/month)
Mileage per annum: 15000
Model: New Skoda Yeti Outdoor SE L 2.0 TDi 4x4 150ps DSG - Free Metallic or Solid Paint
Initial rental: £2250

23 x monthly rentals of £272 (inc. DAB Radio, Space Saver Spare Wheel)

Or

Offer type: Personal Contract Hire (£359.21/month)
Mileage per annum: 15000
Model: New Skoda Yeti Outdoor L&K 2.0 TDi 4x4 150ps DSG - Free Metallic or Solid Paint
Initial rental: £2250

23 x monthly rentals of £277 (inc. Space Saver Spare Wheel)

With regards to our current stock the only option that would suit what you were looking at is here: http://www.simpsonsskoda.co.uk/used-vehicles/5952189-skoda-yeti-se-l-2.0-tdi-scr-150-ps-4x4-dsg/

The prices for this particular one would depend on how you were looking to finance it. Please let me know your thoughts on this.

All quoted figures include VAT. There are no additional admin fees. Road Fund Licence is included for the entire period of the agreement.

 

Excess mileage over the 30000 total would be charged at 7.2p per mile. So if, for example, the car's mileage was 34000 when it is due for return - then the excess mileage charge payable would be £288.

In order to get the car as specified we would be looking at placing a factory order. Depending on exactly which vehicle you were after we would likely be looking at a factory order of anywhere between 12 – 17 weeks.

It is simple to secure your order and reserve your new car, all that we require is a £500 card payment.
 

[Urban-Kodiaq]

Been following the topic with interest as looking at down sizing from a superb to a yeti and looking at buying v pch.

Does pch only work out cheaper on low spec model on low mileage?

Because when i work it out it still appears to cheaper to buy nearly new rather than PCH!

Unless i am missing the point.

Existing superb £31k new purchased 6 months old for £22.5k

4.5years old now been offered £10,750 px

So over 4 years cost  £11,750 covering 45,000 miles

Monthly cost £245 (does not include one service variable at 22k or 2 MOT's or 4 tyres.

 

Obtained quote from about for L&K yeti replacement and quoted

£2250 + 23 payments at £230 per month.

 

So with out any options to compare 4 years ownership taking out 2 pch deals both for 2 years assuming the deal in two years time will be the same (2x£2250 + 46 payments) = £314 per month average.

 

Meaning cheaper the buy 6-9 month old superb again rather than downsizing to a yeti as 4k more expensive over 4 years with PCH on the yeti.

 

Does this mean it is cheaper to buy a nearly new superb again as down sizing to a yeti on pch is going to cost me more?

 

Or should i look at buying a near new yeti if keeping for 4 years and covering 40-45k miles over this period.

 

There must be a graph or formula some where to work out mileage / contract duration for PCH for each model compared with buying near new with less depreciation.

 

Any advice?

[logiclee]

Been following the topic with interest as looking at down sizing from a superb to a yeti and looking at buying v pch.

Does pch only work out cheaper on low spec model on low mileage?

Because when i work it out it still appears to cheaper to buy nearly new rather than PCH!

Unless i am missing the point.

Existing superb £31k new purchased 6 months old for £22.5k

4.5years old now been offered £10,750 px

So over 4 years cost  £11,750 covering 45,000 miles

Monthly cost £245 (does not include one service variable at 22k or 2 MOT's or 4 tyres.

 

Obtained quote from about for L&K yeti replacement and quoted

£2250 + 23 payments at £230 per month.

 

So with out any options to compare 4 years ownership taking out 2 pch deals both for 2 years assuming the deal in two years time will be the same (2x£2250 + 46 payments) = £314 per month average.

 

Meaning cheaper the buy 6-9 month old superb again rather than downsizing to a yeti as 4k more expensive over 4 years with PCH on the yeti.

 

Does this mean it is cheaper to buy a nearly new superb again as down sizing to a yeti on pch is going to cost me more?

 

Or should i look at buying a near new yeti if keeping for 4 years and covering 40-45k miles over this period.

 

There must be a graph or formula some where to work out mileage / contract duration for PCH for each model compared with buying near new with less depreciation.

 

Any advice?

 

 

Your major cost is always depreciation when buying a new car whether it's PCH, PCP, HP or Cash.

 

Start comparing it to used cars where someone else has taken the 1st depreciation hit will always favour the used car. It just depends how old the used car is and how much it has already lost in value.

 

Simpsons have the L&K advertised at £2250 & 23x£139. Why £230 a month?

 

Lee

Edited 28 July, 2016 by logiclee

[Citigopher]

The 'used' purchase illustration also ignores the fact that you need to finance a £21.5k purchase up front. The monthlies on a personal loan of this sort of value are going to be pretty unpleasant. Even if you are going to recoup £10k+ of the capital, you've got to wait 4 years to get it back, and in that time your money is locked into the asset with no way of releasing it other than to sell the car. Arguments in this discussion based on using your own lump-sum cash to purchase a car either up front or at the end of a PCP seem pretty irrelevant to me. This thread is about financing a car for those that aren't in such a fortunate position, or those that don't want to tie their savings into a depreciating asset.

[SurreyJohn]

Simpsons have the L&K advertised at £2250 & 23x£139. Why £230 a month?

 

Lee

It would be an average £2250 + 23x139 = £5447 divide by time (24 months) and you get £227 (presume answer was rounded to £230)

Allows comparison of smaller deposits and bigger monthlies.

Always remember the offers are done to make a profit for the supplier, all this dressing up of a headline figure is to lure potential customers, just like mobile phone contracts, the offers aren't to save you money, just make you think you got a better deal than someone down the road is offering. Converting it to an average cash amount lets you see it without the smoke and mirrors.

`

[logiclee]

It would be an average £2250 + 23x139 = £5447 divide by time (24 months) and you get £227 (presume answer was rounded to £230)

Allows comparison of smaller deposits and bigger monthlies.

Always remember the offers are done to make a profit for the supplier, all this dressing up of a headline figure is to lure potential customers, just like mobile phone contracts, the offers aren't to save you money, just make you think you got a better deal than someone down the road is offering. Converting it to an average cash amount lets you see it without the smoke and mirrors.

`

 

 

No he posted £2250 and 23 payments at £230 a month.