I am interested to find out what the owners did when there 3 year 0% PCP deals came to an end given the 3 choices of:

1 Handing the car back and walking away.

2 Taking out another PCP with Skoda.

3 Buying the car at the end of the agreement.

Also for those owners who choose option 2 what did the dealership offer you over the above the guaranteed future value against the type of new vehicle you choose.

Oh dear, it's wake up and smell the coffee time, the O3 has depreciated badly on all trims/models.

Sorry to tell you this but, there is very little chance of you having any equity in your car unless, you put a shed load of deposit down

^^^^what that guy said. At the end of my pcp I will either buy it our or just well buy it out. I doubt there will be any value over the GFV.

Sad fact is my mk3 is predicted to be worth less in 3 years than my mk2fl was at 5 years!

Even another year on it would probably be worth more!!

On the plus side there will be a load cheap 2nd hand octavia's on the market.

My advice would be go in and see what deal you'd get from your dealer. Most - if not all - on here complain of being in negative equity after only ~2 years. Why this is a surprise is anybody's guess.

Mines a keeper.

Despite what the rose tinted brigade predicted 30 months ago, the Octy was never going to hold its value no matter how good the car might turn out to be and to be honest, they're not that bad.

I kind of went into the deal with my eyes open, I did have thoughts about changing it but reality had to take a front seat. Bismark has done well under 29k in 33 months and has proven to be a really good car.

Having a newer car would be nice (for the number plate snobs but I have a private plate anyway) but I'm ok where I am, three years free servicing and 0% finance has helped to take the sting out.

The mid term future is for Bismark to stay, if I'm brutally honest, I need nothing else.

However, I will be carefully watching the second hand values of the Kodiak...

Edited 16 October, 20169 yr by Mence

Oh dear, it's wake up and smell the coffee time, the O3 has depreciated badly on all trims/models.

Sorry to tell you this but, there is very little chance of you having any equity in your car unless, you put a shed load of deposit down

I put £5k deposit down and was still in negative equity after 32 months.  Hence one of the reasons I VT'd.

 

The car is still sat on a forecourt up North because they want £14.5k for it - they'll never shift it at that price!

I also VT'd near the end of the PCP deal, taking on another Octy 3 (SE L) but this time on a PCH contract. I was able to order the exact spec I wanted and was treated just as if I was a cash customer, my wife even being presented with a beautiful bouquet when we collected !

I paid less deposit than before, similar repayments but with double the allowed mileage I had previously, which I now need. I don't need to pay road tax, the car has full breakdown service, full warranty cover, and by opting for variable servicing I'll need to pay for just one service during the 3 year hire period. My deal was for a "3 plus 35" contract, meaning a down payment of 3 x monthly payments, followed by 35 "rentals", so cheaper than the PCP deal I took out 3 years ago.

I do believe PCH is the new PCP - too many fingers burned with unfulfilled expectations on the PCP's, purely through the market saturation of the car, which itself is a great motor.

JKW

I put £5k deposit down and was still in negative equity after 32 months. Hence one of the reasons I VT'd.

The car is still sat on a forecourt up North because they want £14.5k for it - they'll never shift it at that price!

Yeah @TMWNA it shouldn't matter on a 0% deal whether you pay £10 or £10,000 deposit - the GFV is the same, so all that will change is your monthly payment, the total payable will remain constant whether it be up front or via the monthlies.

The issue is the GFVs being ridiculously over estimated...one of the main reasons I chose to lease.

Same issue here, although mine was a 3.5 year deal, it's actually been a great car and is driving dare I say it better than ever. The sticky issue being should it stay or should it go. In the end I've checked out all my options and reckon that even though it is a good car and will probably run well for 5 years or so without being too costly to maintain, I just don't want to keep it that long and if I was wanting to change it in say two years time I don't think that I'd be getting very much for it and it's already cost me far too much money as it is.

 

So, checked out some of the PCH deals around just now and with the Yeti being changed probably next year, ( i.e. Seat Alteca) there are some very attractive deals on offer, found a great deal on the Yeti Outdoor L & K spec with 1.4 petrol engine, after deposit it will cost me about half what I've been paying on the Octavia per month and that includes two years road tax too. That will do me well enough for the next two years as I'm doing quite a lot of short journeys and not really getting the best out of the Octavia's diesel engine with that kind of usage and the Yeti has a surprising amount of space in it if you take the rear seats out for large loads and with the L & K spec there isn't very much that isn't on that car for only a tiny bit more than a PCH on the SEL model with smaller engine and a lot less goodies.

 

All the same I will miss it when the new car arrives, which will be December or maybe January. The dealership are trying to work things out so that they can buy my car direct from Skoda so they can resell it, so not a penny for trading it in. I did look to see if there were any good deals on the Octavia Estate models, but they were coming in a good £60 to £70 more per month than the Yeti with the same sort of deposit, which is maybe money I'm as well spending on fuel rather than renting the car. I think the diesel engined Yeti was a similar amount extra per month too over the petrol version in the same spec.

Is there a reason why the deprecation is so bad on the mk3 ? I'm a bit concerned having bought a second hand vrs tsi a few weeks back !

Think they hiked the list price somewhat over the previous version, then ran the factory flat out with people buying loads of cars on 0% PCP deals plus a lot of fleet sales to rental companies, presumably at very keen prices and these are the cars which have turned up first on the secondhand market in large numbers in and around a year old at places like Motorpoint at very, very low prices compared to the original asking price. I guess it comes down to supply and demand, if you hugely increase the number of one year old cars on the secondhand marketplace, that will in turn impact on the residual values of the other cars bought new by private buyers which wouldn't normally reach that market until 3 years old.

 

Maybe Skoda should have kept a tighter control on the disposal of these ex hire cars, if they had been released through their dealer network across the whole of the UK, that might have reduced the impact that these cars have had on overall residual values, i.e. they could have leased these cars to the hire companies, rather than selling them at big discounts and losing control of how these cars are sold on again after they come off hire.

A major **** up by Skoda then!.. I presume buying second hand, I bought a 14 plate, should be safer with lower depreciation from now on ?.. it's crazy as it's such a nice car !, especially with the number of people that comment on how good the car looks, etc.. !

Always safer buying second hand as far as depreciation is concerned. I bought mine at 6 months old and already £7000 cheaper than when new. The original owner put £2000 of extras on it and then decided he wanted a BMW X6 instead so obviously could afford the losses!!!

With this car buying a decent secondhand example is a no brainer, especially if there is still some warranty left, buying a new one on a PCP would be pointless with the current depreciation levels and with a facelift due next year, the last of the current look cars will probably be hit again when valued as future trade ins against the revised spec/ look versions of a similar age/ mileage. Only way to "buy" one of these new is via PCH when you know exactly what you are paying for and have no expectations of any future trade in value, occasionally there seems to be some quite good PCH deals available, someone on this forum managed to get I think an Octavia Scout on something like £100 PCM with a circa £2000 deposit, nothing like that seems to be available right now but these deals change all the time and there might be better deals on the last of the pre facelift models, if there any sitting in stock after the update.

Edited 17 October, 20169 yr by AllanDJ

There's a good deal on hotukdeals website at the moment... Octavia hatch, 1.4, petrol, 10k miles, 9 + £139/month for personal hire - approx £4500 over two years. Seems like a good deal. And another link within for a vrs for not much more.... if I wasnt still on 3.5 year PCP I'd be very tempted.

Suspect as it gets closer to the new model release, we could see even better pricing on the current model?