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VT-ing a PCP - the ball is rolling. My experience.....


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Hi all,


 


I'm currently 18 months into a 42 month PCP deal and although I'm really happy with the car, I've recently moved from permanent employment to contracting, therefore my mileage has gone up from around 5,000 miles per year to (if it continues as is) 30,000 per year - a big change in circumstance and employment for me.


 


I believe I could hand it back and walk away after that 50% milestone, go in and trade it in for a diesel or just continue to throw miles onto it and pay the excess mileage. 


 


What would you recommend doing? :)


 


Thanks a lot.


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You'd possibly be better off doing the voluntary termination after 40 months, not least because you might have changed jobs again.

 

Thanks. Would you say to just keep it and throw a potential additional 50k miles onto it - then pay the excess?

Edited by randomeclipse
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Might be worth speaking to an accountant if you're contracting as I assume you'll be "a business".

It might be cheaper to take a business lease deal for a car for work only and offset against tax etc and keep the existing car.

Not sure on this one but I did look into leasing for business and there were some fairly decent deals but you didn't really want to use it for personal due to the tax complications.

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Might be worth speaking to an accountant if you're contracting as I assume you'll be "a business".

It might be cheaper to take a business lease deal for a car for work only and offset against tax etc and keep the existing car.

Not sure on this one but I did look into leasing for business and there were some fairly decent deals but you didn't really want to use it for personal due to the tax complications.

 

Thanks, I'll drop them a note and query the BiK route.

 

Thinking about it, it may realistically make more sense to just take the hit on excessive mileage as Skoda's excess is pretty good at 4p.

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Thanks, I'll drop them a note and query the BiK route.

Thinking about it, it may realistically make more sense to just take the hit on excessive mileage as Skoda's excess is pretty good at 4p.

Also watch your pcp terms - can't remember on my Skoda pcp but recently signed a pcp with BMW and it specifically states a number of business uses you're prohibited from using the car for, mainly stuff like taxi hire but I'm sure I noticed something akin to "traveling engineer" or some such vague term. Edited by gullyg
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Also watch your pcp terms - can't remember on my Skoda pcp but recently signed a pcp with BMW and it specifically states a number of business uses you're prohibited from using the car for, mainly stuff like taxi hire but I'm sure I noticed something akin to "traveling engineer" or some such vague term.

 

I shall take a look.

 

Be interested to see if going into the dealer would offer any success, taking into account the change of circumstance etc....

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How about looking at leasing a different car and having them cover the remaining finance to keep me with them for 2 years....

 

They'll have my money for 2 years and the car back, and I won't be putting funny miles on a petrol car.

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Don't keep me hanging, what did they say? :)

Nothing really. They won't care if the mileage is over what the PCP says. The trade in price will just reflect it. More miles = less trade in. Everyone on here seems to get wrapped up in the mileage on PCP. It's not a PCH, so unless you're handing the car back who cares.

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I'm really confused now!    My PCP ends in almost exactly a year's time.  It is very difficult to assess values.

I was wondering if it is worth paying the lump sum at the end then trading in for a new deal, whether PCP again or whatever is on offer?

The car will almost certainly be very low mileage - about 15K or less, and hopefully in good condition.

I suppose it just depends what is on offer - this one was 3 years interest free - and so on. 

 

The other option I wondered about was is it worth paying the lump sum, so owning the car outright, then selling it secondhand somewhere, then taking that cash back to the dealer for hopefully a discounted new car deal.

 

Decisions, decisions!!!

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The other option I wondered about was is it worth paying the lump sum, so owning the car outright, then selling it secondhand somewhere, then taking that cash back to the dealer for hopefully a discounted new car deal.

 

Decisions, decisions!!!

 

I did consider the same thing but a Ford Cap valuation had my car at considerably less than the £12900 I still owed.  My choices were either pay £628 to hit 50% and VT or pay £12900 and probably get £11500 if I sold privately.

 

Either way I was going to lose money, I just took the path of least resistance.

 

I wish I had the confidence of the dealer currently offering mine for sale - they want £14.5k for it and are probably scratching their heads as to why it's still sat on their forecourt 7 weeks after I handed it back!!

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I'm really confused now! My PCP ends in almost exactly a year's time. It is very difficult to assess values.

I was wondering if it is worth paying the lump sum at the end then trading in for a new deal, whether PCP again or whatever is on offer?

The car will almost certainly be very low mileage - about 15K or less, and hopefully in good condition.

I suppose it just depends what is on offer - this one was 3 years interest free - and so on.

The other option I wondered about was is it worth paying the lump sum, so owning the car outright, then selling it secondhand somewhere, then taking that cash back to the dealer for hopefully a discounted new car deal.

Decisions, decisions!!!

Hey Ednmra,this may be of some help. Popped into a dealer here recently, and although I'm living in Ireland hopefully it'll give you an idea.

My car is a 1.6TDi 105bhp elegance saloon got on PCP in 2014.

The price new was €28k. The minimum future value was €10,5k. There is currently 25,700 miles on the clock well below the allowance of 37k miles. My trade in value from the dealer €13,500. The settlement figure I received from VW Bank €12,284.20. Taking one from another that is €1,215.80 as a contribution towards a 2017 registration.

If I want a 17 reg Octavia Elegance, the exact same I currently have, I need in total €2,610.04 as a deposit for a new 3 year PCP term.

Hope this helps in some way.

Edited by SkodaCB
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That is interesting. If I have a smallish cash sum to pay, plus my present car going back to them, I'd be okay carrying on with something like my present monthly payment for a new version of my present car  IF the other conditions of the deal are very similar - i.e. three years interest free, three year warranty, free servicing, low road tax etc.

Although probably not the cheapest overall way to have a car it does make it very worry free (so long as the car behaves as well as this one is doing at present!!)

 

But with about a year still to go I guess I just can't estimate things yet - especially with Brexit strolling into the act !!

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That is interesting. If I have a smallish cash sum to pay, plus my present car going back to them, I'd be okay carrying on with something like my present monthly payment for a new version of my present car IF the other conditions of the deal are very similar - i.e. three years interest free, three year warranty, free servicing, low road tax etc.

Although probably not the cheapest overall way to have a car it does make it very worry free (so long as the car behaves as well as this one is doing at present!!)

But with about a year still to go I guess I just can't estimate things yet - especially with Brexit strolling into the act !!

If you want a new car every 2 or 3 years Personal Contract Hire PCH is cheaper.

Did you see that 2 year deal I found on a 1.4 TSi Se sport? Basically £4500 for 2 years motoring.

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"My car is a 1.6TDi 105bhp elegance saloon got on PCP in 2014. 

The price new was €28k. The minimum future value was €10,5k. There is currently 25,700 miles on the clock well below the allowance of 37k miles. My trade in value from the dealer €13,500. The settlement figure I received from VW Bank €12,284.20. Taking one from another that is €1,215.80 as a contribution towards a 2017 registration."

 

All I can say is you are one lucky sod to actually have any equity at all! My own car is virtually identical to yours, same engine, same spec, but estate rather than hatch which should be worth more to be honest, very similar mileage too, mine is just over 25,000 miles just now and a few weeks over 3 years old, 3.5 year PCP deal which would end in April next year if I kept it that long, GFMV at that date is £9378 but there is no way I would ever get even that much trading it in here in the UK. I asked a few Skoda dealers about trading it in, first one wanted me to pay them nearly a £1000 to take it off my hands and second one only wanted £600! 

 

I don't understand how Skoda in Ireland can make their PCP deals work whilst Skoda UK seem to have left most Octavia owners here with a toxic "asset" they can never get anything from, there also seems to be a huge difference in Octavia values in Ireland compared to here. At current exchange rates a pound is something like 0.89 of a Euro, which would make the GFMV of the Irish car as £10,932 as compared to my £9378, yet the Octavia hatch in Ireland has got a trade in value and mine doesn't...

 

I've been left with no choice but to hand my car back to the garage, I'm getting a Yeti L & K on PCH, the garage have "kindly" offered to take my worthless Octavia off of my hands when the Yeti arrives and buy it themselves from Skoda for resale. 

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"My car is a 1.6TDi 105bhp elegance saloon got on PCP in 2014. 

The price new was €28k. The minimum future value was €10,5k. There is currently 25,700 miles on the clock well below the allowance of 37k miles. My trade in value from the dealer €13,500. The settlement figure I received from VW Bank €12,284.20. Taking one from another that is €1,215.80 as a contribution towards a 2017 registration."

 

All I can say is you are one lucky sod to actually have any equity at all! My own car is virtually identical to yours, same engine, same spec, but estate rather than hatch which should be worth more to be honest, very similar mileage too, mine is just over 25,000 miles just now and a few weeks over 3 years old, 3.5 year PCP deal which would end in April next year if I kept it that long, GFMV at that date is £9378 but there is no way I would ever get even that much trading it in here in the UK. I asked a few Skoda dealers about trading it in, first one wanted me to pay them nearly a £1000 to take it off my hands and second one only wanted £600! 

 

I don't understand how Skoda in Ireland can make their PCP deals work whilst Skoda UK seem to have left most Octavia owners here with a toxic "asset" they can never get anything from, there also seems to be a huge difference in Octavia values in Ireland compared to here. At current exchange rates a pound is something like 0.89 of a Euro, which would make the GFMV of the Irish car as £10,932 as compared to my £9378, yet the Octavia hatch in Ireland has got a trade in value and mine doesn't...

 

I've been left with no choice but to hand my car back to the garage, I'm getting a Yeti L & K on PCH, the garage have "kindly" offered to take my worthless Octavia off of my hands when the Yeti arrives and buy it themselves from Skoda for resale.

Alternatively you could just buy it, its a cheap used car that you know.

Its only your desire to change car that brought this about.

If you want a new car every 3 years, PCH is the cheapest way.

Just keep an eye on how much you spend, as over say 10 years it might add up to a much better car.

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"My car is a 1.6TDi 105bhp elegance saloon got on PCP in 2014.

The price new was €28k. The minimum future value was €10,5k. There is currently 25,700 miles on the clock well below the allowance of 37k miles. My trade in value from the dealer €13,500. The settlement figure I received from VW Bank €12,284.20. Taking one from another that is €1,215.80 as a contribution towards a 2017 registration."

All I can say is you are one lucky sod to actually have any equity at all! My own car is virtually identical to yours, same engine, same spec, but estate rather than hatch which should be worth more to be honest, very similar mileage too, mine is just over 25,000 miles just now and a few weeks over 3 years old, 3.5 year PCP deal which would end in April next year if I kept it that long, GFMV at that date is £9378 but there is no way I would ever get even that much trading it in here in the UK. I asked a few Skoda dealers about trading it in, first one wanted me to pay them nearly a £1000 to take it off my hands and second one only wanted £600!

I don't understand how Skoda in Ireland can make their PCP deals work whilst Skoda UK seem to have left most Octavia owners here with a toxic "asset" they can never get anything from, there also seems to be a huge difference in Octavia values in Ireland compared to here. At current exchange rates a pound is something like 0.89 of a Euro, which would make the GFMV of the Irish car as £10,932 as compared to my £9378, yet the Octavia hatch in Ireland has got a trade in value and mine doesn't...

I've been left with no choice but to hand my car back to the garage, I'm getting a Yeti L & K on PCH, the garage have "kindly" offered to take my worthless Octavia off of my hands when the Yeti arrives and buy it themselves from Skoda for resale.

It is a little surprising alright, however I feel I was low balled on the €13,500 trade in value from my dealer as you wouldn't buy a second hand 14 reg for less than €17,000 in my spec and mileage here.

I think part of the reason there's still some equity in relation to PCP here is the fact PCH is not available for the average Joe here in Ireland where as it's becoming the defacto for car buyers in the UK, it's the way I'd go if it was more commonly available here.

I've decided to cut my losses anyway, even though a new RS was extremely tempting. I'm just gonna get a bank loan and clear the balloon payment and own the car out right, works out much cheaper than what I currently pay VW Finance at the moment and I don't have to go through the whole rigmarole of financing a new car again for 3 years and possibly be left with nothing at the end of it.

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  • 3 weeks later...

I did consider the same thing but a Ford Cap valuation had my car at considerably less than the £12900 I still owed.  My choices were either pay £628 to hit 50% and VT or pay £12900 and probably get £11500 if I sold privately.

 

Either way I was going to lose money, I just took the path of least resistance.

 

I wish I had the confidence of the dealer currently offering mine for sale - they want £14.5k for it and are probably scratching their heads as to why it's still sat on their forecourt 7 weeks after I handed it back!!

 

Looks like they dropped the price by a grand and have now shifted it.

 

So someone's paid £13.5k for something probably worth £11.5k and an MOT due within 30 days.

 

Nowt so queer as folk as my dear old dad used to say.

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But a trade in price is just that - how much a dealer will buy it for so they can sell it on at a profit.

It doesn't show what a forecourt price will be with a new MOT, a warranty and possibly a service.

 

True and acknowledged; but no MOT on this one.

 

Knowing the vehicle, having had it from day one, it'll fly through an MOT (unless VAG's cheat device fails them) but the buyer won't know that.

 

Plus, I'm still perplexed as to why they'd advertised the car as having 20,000 miles more on the clock than it did.

 

Hey ho.

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  • 1 month later...

Hi..

 

Just a quick question. Have you/Are you aware of the effect of VT'ing the car has had on your credit score?

Reason i ask is i recently VT'ed my citigo, and now my credit report has updated, it shows the agreement has been VT'ed but also has a amber mark showing "payment was up to one month late" - just wondering if this is normal.

 

Up until this, my credit score was exemplary and now its taken quite a knock, dropping from "excellent" to "fair"

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No, it isn't normal, was the final payment late?

 

There was a settlement to pay, which was paid two days after the monthly DD would have come out. The reason i didnt pay it instantly is they couldn't tell me on the phone if monthly DD was going to come out, which would have cancelled out the settlement amount.

It was all delt with quite quickly as the car tax and MOT was due to expire within a couple of weeks of ordering the VT.

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