Has anyone done a 3 year pcp which went through the full 3 years?

 

If so, did you pay the lump sum and keep the car or start some kind of new deal, trading in the first car?

 

How  does it / did it  work?  Specifically how do they value the first pcp'd car against the new arrangements, and so how does it affect the monthly payment?

 

Does the first car act as full deposit for the next deal?

Yes done it before.

Your final instalment is the guaranteed future value of the car.

You have 3 options at the end:

1) Pay the final amount - the car becomes yours.

2) Hand the keys back (as long as the car is in fair condition for its age and you've not exceeded your mileage).

3) Part Ex for a new car and start again with a completely new agreement. If there is any equity left, you can use that as a deposit.

If you've been following any of the recent threads here on Octavia residual values you might realise that the most important option isn't available to you, i.e. Skoda dealers do not want your car back and won't give you anything for it as the GFMV is less than the current market value in the motor trade. Only realistic options are sell privately (if you can and that would mean paying off balance owing before selling the car) or hand it back/ keep it and pay off balance owing.

I don't get it. Webuyanycar values it at  £10400.  So say next year it is worth £8K and I will owe about £6K. surely that would go towards a new car?

Yes done it before.

Your final instalment is the guaranteed future value of the car.

You have 3 options at the end:

1) Pay the final amount - the car becomes yours.

2) Hand the keys back (as long as the car is in fair condition for its age and you've not exceeded your mileage).

3) Part Ex for a new car and start again with a completely new agreement. If there is any equity left, you can use that as a deposit.

If I maybe so bold did you get anything in the way of equity towards a new car?

I've been looking around on carzone.ie with living in Ireland to get a idea of my trade in equity. My minimum GFV is €10,500 but with dealers asking this much for example http://m.carzone.ie/used-cars/Skoda/Octavia-EXCLUSIVE-1.6TDI-105HP/2458200542410374347

It's making me wonder do I need to put down any of my own cash along with any equity or will equity alone be enough

If you've been following any of the recent threads here on Octavia residual values you might realise that the most important option isn't available to you, i.e. Skoda dealers do not want your car back and won't give you anything for it as the GFMV is less than the current market value in the motor trade. Only realistic options are sell privately (if you can and that would mean paying off balance owing before selling the car) or hand it back/ keep it and pay off balance owing.

I'm not sure I follow your logic? if the GFMV is less than the market value then that's great news as it means the final amount you owe is less than it's worth so you have equity!

 

If it's the other way round then you are stuck as you have no deposit for a new one so would have to stump up some cash, although some will do a zero deposit finance deal.

I don't get it. Webuyanycar values it at  £10400.  So say next year it is worth £8K and I will owe about £6K. surely that would go towards a new car?

 

Depends how much they want your car. If they dont want it, they wont offer you more that your £6k GMFV, so you wont have any equity towards your new car.

 

If they do want it, and/or are desperate to sell cars/have a big margin in the car you want to buy, they will use some of that money to offer you more than your £6k GMFV.

 

Other makes dealers or We buy any car might value it for more than the GMFV.

 

However the general vibe on here is that Octavia's aren't worth the GMFV and there is over supply, so not many people end up with any equity.

 

If I dont have any equity, I'll get a personal loan and buy it, pay my £6700 GMFV. After all its cheap for a 3 year old car I know has been looked after.

 

Then once I've paid some of it off, maybe look at another different car. 

Oops too early in morning when I wrote that! Meant to say that most of the cars are worth less to the motor trade than the GFMV you can buy the car for at the end of the PCP deal, which equates to two fingers from Skoda,

as that lovely salesman who sold you the car will want to charge you money to accept your current car as a trade in against another brand new similar car. At which point you tell him where to stick his car and go elsewhere...

 

If you want to change your car and don't want to sell it privately you are pretty much forced to hand the car back for nothing at all at the end of the deal or VT your PCP deal slightly early when you get to the half way point in your payments against the original price of the car.

It's a very poor state of affairs really and the absolute last time I buy a car on a PCP!

However the general vibe on here is that Octavia's aren't worth the GMFV and there is over supply, so not many people end up with any equity.

 

You can get a free, accurate valuation via Ford Cap.

 

My VRS is already valued at less than the GFMV and I would still have 10 months to run on it if I hadn't VT'd.

 

I dread to think what it'll be worth next June.

 

The VRS is a very nice car but the depreciation is eye-watering............how much of that is down to VWDieselgate is anyone's guess.

Just as an aside on this, I recently got a quote from Renault on a Kadjar. They said I was in 2k negative equity on my Elegance 2 litre diesel but Business Manager agreed to cover this and offered a couple of grand off too if I signed up (incidentally I didn't but going to revisit this in a few months time). I'd always been told non Skoda dealers not interested in giving the best deal but this doesn't seem to be the case with everyone. VW wouldn't even entertain any negotiation and just basically told me to go away...

That would tell me that they can't give Kadjar's away!

Probably! But even the Skoda dealer I purchased from in the first place wasn't offering any sort of sweetener to keep me.

Times are changing, go PCH (lease) next time. Pay a deposit, your agreed monthlies and throw the keys back at the end.

Yep, I have a decision to make before January. The plan was always to roll this one over for something else, and having looked at how Mk2 4x4s hold their value I figured this would work out OK. It's not looking that way! The dealer was pretty lukewarm this week when the car was getting serviced and I enquired about changing and asking whether I was now the right side of the depreciation vs. finance owed curve.

 

Without a harsh early winter spiking 4x4 values, or the dealer being serious about getting me into my 4th Skoda, I can see me cutting my losses and going for a Subaru Outback with the 5 year 100,000 mile warranty and defer the next change for a long time......

 

Niall

I have a year + to go so things can change but I wondered how the dealer who provided it (and my last Octy - which was non PCP) would react if I suggested I would try numerous other dealers.

Do they look on that as competition? Is it worth them losing a sale to an established long term  customer?

I have a year + to go so things can change but I wondered how the dealer who provided it (and my last Octy - which was non PCP) would react if I suggested I would try numerous other dealers.

Do they look on that as competition? Is it worth them losing a sale to an established long term customer?

Depends how much they want your business. If they have achieved their target then they might not be bothered.

As always shop around for the best deals. Start about 12 weeks before, just in case you end up waiting for a factory order, get your settlement figure from VWFS and see what dealers offer you.