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

[octavianestate]

You can always do what I did; bail out 3 months early.

I got hit with a £600 "this is what you need to pay to hit 50% and VT" payment but the deal I was getting from Ford made it worthwhile. (And I got 39.8mpg driving back from Norwich to Bath in a 250bhp petrol compared to the 43mpg I was getting in my VRS diesel......I suspect the Focus ST is going to be a lot more fun).

If your experience with Skoda is that bad it might be a worthwhile consideration?

I agree. I have had a bad experience with this brand so as I have just hit the 50% point the car is going back for them to sell on to some unwitting customer.

Options now are to keep my boxster and the focus hatchback as the run about.

Sell the boxster and try a Leon cupra St or insignia vxr estate.

I'm not a company car user so I get to choose the cars I want :-)

[JKW]

Update: received the call today from BCA, they're collecting the VRS on 6th September.  They have given me a "passcode" that the agent will quote when he arrives so that I don't let some random stranger drive the car off into the sunset.

 

So from initial notification that I wished to VT (17th August) to collection is three weeks.

I too, have now had my phone call from BCA, with "passcode" ;   they're  collecting mine from the dealership on 9th September. By then I'll be long gone, taking delivery of my new Octy on the 1st.

However, as all my neighbours keep telling me, someone's going to get a great car when they get mine ! It really has been excellent, apart from servicing , has had no reason whatever to visit a dealership, being totally reliable, great to drive, and still looks the "bizz" ! :sun:

JKW

Edited 28 August, 2016 by JKW

[VRsMars]

I have been reading these posts with interest and am willing to hear the views of those more experienced in the VT process, if nothing more than to clarify that I have understood the situation with regards to VT

 

I have a Oct 13 VRS diesel which is on a 42 month PCP. The contract mileage is 20,000 per year, but I have exceeded this. I am currently 26 months in and have covered 59,000 miles. This means I have 11,000 'free' miles remaining before I will incur the excess mileage charge at the end of the contract in 16 months. Going on current mileage, if I run to term, I am going to be around 25,000 miles over the contracted mileage and will be hit with a £1750 excess mileage charge...

 

Having added up all the payments made so far plus the advance payment, I have cleared the 50% mark a month or so ago. Now if I have read the above correctly, I can just call up Skoda Finance, tell them I want to terminate and they will collect the car, with no more to pay regardless of the high mileage? Is that right? Seems too good to be true.

 

Don't get me wrong - I have loved this car, but if I can walk away now and either take out a new PCP (or a loan which would be cheaper as another poster has mentioned), then this may be the way I will go.

 

Thanks in advance!

[Hollinshead]

Having added up all the payments made so far plus the advance payment, I have cleared the 50% mark a month or so ago. Now if I have read the above correctly, I can just call up Skoda Finance, tell them I want to terminate and they will collect the car, with no more to pay regardless of the high mileage? Is that right? Seems too good to be true.

Correct, as long as the car has been serviced and is in good condition for age / mileage you will have nothing further to pay.

[VRsMars]

Thanks Hollinshead. Already on the approved used Skoda search page, looking at Superbs   . She needs a new windscreen (bad crack) which I will get sorted, and has a few stone chips, but nothing that you wouldn't expect on a car with this many miles

[SkodaVRS1963]

I too, have now had my phone call from BCA, with "passcode" ;   they're  collecting mine from the dealership on 9th September. By then I'll be long gone, taking delivery of my new Octy on the 1st.

However, as all my neighbours keep telling me, someone's going to get a great car when they get mine ! It really has been excellent, apart from servicing , has had no reason whatever to visit a dealership, being totally reliable, great to drive, and still looks the "bizz" ! :sun:

JKW

 

Do you plan on being present when they inspect?

 

Would be awful if your car, whilst at the dealership, was "borrowed" by one of the mechanics technicians and got damaged.

[JKW]

Do you plan on being present when they inspect?

 

Would be awful if your car, whilst at the dealership, was "borrowed" by one of the mechanics technicians and got damaged.

No, I absolutely trust the dealership (Mitchell's @ Cheshire Oaks), & have been shown just where my car will be securely stored until BCA collection day. I will take note of the mileage & photograph from all angles prior to leaving it behind, but I honestly have no qualms about not being present.

Incidentally, today was the "final prep for handover" day for my Octy, & must say she does look magnificent !! :sun:

Seems a real shame to be losing her, but I do like the idea of always being under warranty, included breakdown cover & road tax, no depreciation or MOT worries, unlikely to ever need to buy tyres, exhausts, batteries or brake pads/discs, and so to me, PCH is a no-brainer, using VT this time only, as a means to an end.

JKW 

[JKW]

Collected my new Octy on Thursday, everything worked out perfectly, leaving my VT'd car with the dealership & driving the new one away, complete with a beautiful bouquet of flowers for my wife !

What was amazing is that NO money was asked for - I'm on a PCH deal (3 plus 35), yet drove off without paying a penny. In addition, I practically begged VWFS to take the PCP/VT shortfall for my "old" car over the phone at the dealership - they'd have been happy to wait but I wanted closure on that deal.

I did phone up again the following day to enquire just when I'm required to pay the initial 3 months rental for the new car - eventually I was informed that it would be within 14 days of me taking delivery, each of  the other 35 payments on the 1st of each following month.

The car itself is magnificent, and apart from the change in colour (white to Quartz Grey)the spec is the same (Elegance now SE L) but there are subtle differences from my old Octy ;

a change in tyres, from Michelin to Bridgestone's, which seem quieter & smoother, no CD player, no under passenger seat stowage (cheapskates), an "Eco" green Leaf in the touchscreen display (!?!), SatNav seems clearer, and no doubt I'll discover more in due course. Overall, very pleased, with the car being presented in  fabulous condition and exactly as I'd hoped it would be.

JKW

[k3vkr]

Finance companies will get the VT law changed, it's only a matter of time imo.. Especially when such a high percentage freely admit the reason for doing so

Pretty pish that people think it's ok to basically lie about mileage, then just punt back halfway through so they get a better deal..

I'm sure people who genuinely need to VT will understand when they can't due all the people who abused the rule though....

[cheezemonkhai]

To be honest the rule should stay, but with changes to allow for people taking the pish.

[andyvee]

It has nothing to do with mileage etc.

 

You could buy a car on an old fashioned 5 year HP deal which gives very similar repayments to a 3 year PCP and do exactly the same - hand it back at the 50% mark.

 

I don't see anyone complaining about the thirds rule from the 'halves and thirds' that apply to the agreements - once you have paid a 1/3rd of the total amount the finance company can't repo the vehicle if you miss a payment without a court order. Until you have paid a third they can come and take it off of your drive if you are late or miss a payment ...............

 

Perhaps if Skoda hadn't taken the pish with the wildly inaccurate GFVs to tempt people in to buying on PCP then we wouldn't be having this discussion.

[SkodaVRS1963]

Perhaps if Skoda hadn't taken the pish with the wildly inaccurate GFVs to tempt people in to buying on PCP then we wouldn't be having this discussion.

 

I have to agree with that.

 

I've still got 10 months to run on mine and I'm already a grand under the figure Skoda quoted me that my vehicle would be worth.

 

Thankfully, I'm VT-ing but I dread to think what the thing will be worth next June.

 

I imagine it's decimated the second-hand market?

[GoneToBeemer]

It has nothing to do with mileage etc.

You could buy a car on an old fashioned 5 year HP deal which gives very similar repayments to a 3 year PCP and do exactly the same - hand it back at the 50% mark.

I don't see anyone complaining about the thirds rule from the 'halves and thirds' that apply to the agreements - once you have paid a 1/3rd of the total amount the finance company can't repo the vehicle if you miss a payment without a court order. Until you have paid a third they can come and take it off of your drive if you are late or miss a payment ...............

Perhaps if Skoda hadn't taken the pish with the wildly inaccurate GFVs to tempt people in to buying on PCP then we wouldn't be having this discussion.

+2

Couldn't agree more.

[silver1011]

All this talk of undervaluing PCP Octavia's would suggest there are loads of them sat around on dealer forecourts with hugely discounted screen prices.

 

This simply isn't the case though.

[999pooch]

Surely undervalued cars is a benefit of PCP?

You don't suffer the extra depreciation, just hand back at the end of term

Edited 5 September, 2016 by 999pooch

[silver1011]

The problem is you've still paid the inflated deposit / monthly payments which were calculated on the assumption the car would be worth more at the end of the term.

 

This is the beauty of PCH. The depreciation is also calculated up front but with no balloon payment to complicate things the deals are cheaper and the cars final value is the burden of Skoda not you.

[999pooch]

The problem is you've still paid the inflated deposit / monthly payments which were calculated on the assumption the car would be worth more at the end of the term.

This is the beauty of PCH. The depreciation is also calculated up front but with no balloon payment to complicate things the deals are cheaper and the cars final value is the burden of Skoda not you.

I'm already a convert, last 2 x cars PCH.

I doubt I'll BUY a new car again

[RapidPaul]

The problem is you've still paid the inflated deposit / monthly payments which were calculated on the assumption the car would be worth more at the end of the term.

This is the beauty of PCH. The depreciation is also calculated up front but with no balloon payment to complicate things the deals are cheaper and the cars final value is the burden of Skoda not you.

Surely if the car is worth less than the GFV at the end of the term then you've done alright out of the deal? If you'd bought on HP then you'd be worse off as you'd have paid more while your car would be worth less. With PCP, the equity gap becomes Skoda Finance's problem.

PCH is mainly cheaper because it's more tax efficient. You only pay VAT on the monthly payments. With PCP you pay VAT on the whole price, even if you never own the whole car.

[silver1011]

If the car is worth less then the GFV then you still have to pay the GFV if you want to keep the car, so you are paying more than the car is worth to keep it.

 

If you cut your losses and hand the car back then you've still paid more than you would have on a PCH deal, so again you lose.

 

If you want to roll any equity into another deal but at the end of the term it's worth less than the GFV then you have no equity (i.e. no deposit contribution for the next car).

Edited 5 September, 2016 by silver1011

[andyvee]

If the car is worth less then the GFV then you still have to pay the GFV if you want to keep the car, so you are paying more than the car is worth to keep it.

 

If you cut your losses and hand the car back then you've still paid more than you would have on a PCH deal, so again you lose.

 

If you want to roll any equity into another deal but at the end of the term it's worth less than the GFV then you have no equity (i.e. no deposit contribution for the next car).

And that last point is what will catch most out - especially those traded in something worth a few K or paid a few K deposit on the assumption that they would see some of them money back again at the end of the term as deposit on the next one ......

[andyvee]

All this talk of undervaluing PCP Octavia's would suggest there are loads of them sat around on dealer forecourts with hugely discounted screen prices.

 

This simply isn't the case though.

Because dealers like £2k margin on used cars as they make about 50p on selling new ones ......

[GoneToBeemer]

Because dealers like £2k margin on used cars as they make about 50p on selling new ones ......

True - it's all about margin on used, and just hitting the targets on new cars to earn their dealer bonus for hitting the new car sales targets.

[Dr Zoidberg]

All this talk of undervaluing PCP Octavia's would suggest there are loads of them sat around on dealer forecourts with hugely discounted screen prices.

 

This simply isn't the case though.

It feels like the gap between part ex prices and what it goes back on sale for is getting larger.

[silver1011]

Yep, sounds like the dealers are winning on the expensive PCP deals and then they win again when selling the car on.

 

Better to assume no equity before signing up to a PCP and doing the sums versus a PCH or outright purchase to work out which is the best value.

[SkodaVRS1963]

All this talk of undervaluing PCP Octavia's would suggest there are loads of them sat around on dealer forecourts with hugely discounted screen prices.

 

This simply isn't the case though.

 

Because BCA simply dispose of them through auction, taking their cut and sending the balance to VW/Ford/whoever. I doubt a returned PCP vehicle ever sees a dealer forecourt.