VT and new car order

[tigermad]

Hi, so I have the figures to VT my car early. If I want to order a new car from the same garage how would this work? Do I tell them I want a quote as if I am buying a new car from scratch and leave the other car out of the equation? How would my finance application for PCP be approved because it would look like I have 2 car loans at the moment wouldn't it?

 

I owe £1500 and will owe nothing further if I wait until August. So do I continue making payments on a car that is depreciating by the second or bite the bullet now. 

[shanemeh]

Get a deal from the garage and see if they'll pay off the £1500 by effectively buying the car and clearing the finance. That way no need to VT.

[tigermad]

1 minute ago, shanemeh said:

Get a deal from the garage and see if they'll pay off the £1500 by effectively buying the car and clearing the finance. That way no need to VT.

 

Thanks, do I tell them I am thinking of VTing it then? So what happens they then add the £1500 back into the new PCP?

Edited 8 February, 2017 by tigermad

[shanemeh]

No say... I'm looking for my new car, what will you offer me for trade in? Hopefully the price they give you covers the £1500 you owe on the finance. I would try clear the finance or wait rather than VT. Whilst VT doesn't leave a mark on credit score, it does show up so fiance companies may thin twice about opening up another PCP.

[johnrowley]

what do you mean "owe £1500", is that late payments or the value of the care under the settlement of the finance

[tigermad]

Another quick question, I am currently paying around £280 per month on a 42 month agreement (10k miles per annum and very small deposit). I have recently had quotes to change now and my payments on a car thats about £5k more expensive than my current car was at the start of the PCP seems extortionate. For 15k miles per annum they want nearly £500 per month. Does this seem right? I know they are including the mileage excess in this but this is even after I put down a £2000 deposit!

[tigermad]

Just now, johnrowley said:

what do you mean "owe £1500", is that late payments or the value of the care under the settlement of the finance

 

Sorry, I have not paid back 50% yet (until Aug) so it is basically what payments I owe to make it the 50%

[johnrowley]

3 minutes ago, shanemeh said:

t does show up so fiance companies may thin twice about opening up another PCP.

 

it has no effect, have VT'd  3 times with land rover finance, 4 times with mercedes finance, VWFS will get their first one next february ......

[shanemeh]

Depends what interest you are getting. Fairly easy to work out. Some PCP deals have 6/7% interest.

 

I bought my car outright with a bank loan from Sainsburys. 2.8% at the moment. Much better than PCP and you're not tied in to any contract with the car.

[johnrowley]

Just now, shanemeh said:

Depends what interest you are getting. Fairly easy to work out. Some PCP deals have 6/7% interest.

 

I bought my car outright with a bank loan from Sainsburys. 2.8% at the moment. Much better than PCP and you're not tied in to any contract with the car.

 

but if you are a high mileage driver (like me) VT is not an option

[johnrowley]

4 minutes ago, tigermad said:

 

Sorry, I have not paid back 50% yet (until Aug) so it is basically what payments I owe to make it the 50%

 

and the value of the car is much lower than than the outstanding? if so wait until august and VT then. Check on the first page of the finance agreement that VT is an option, the way some agreements are constructed precludes it and you may not have been sold what you expected, there are a plethora of agrement types and profiles these days and is easy to be misled either intentionally or not - believe me i sell finance (not for vehicles) as part of my job

[glosrich]

As shanemeh says, keep quiet about VT for now, just see what deal they offer you.

 

Remember its the price to change that's the critical bit, that's what you pay. So make sure you get discount on the new car and at least the settlement value for the old car, hopefully more.

 

They may try and hide the negative equity in the old car by using the profit in the new car.

 

Do your homework, look at discounted prices for the car you want on broadspeed.com, and get a we buy any car price on yours, so you can see the price to change yourself.

 

I'm not sure how keen Skoda dealers will be for Octavia sales at the moment, as we're in this changeover to the facelift model, so any facelift order may take at least 12 weeks. They might be more keen if you take something from stock, pre-facelift.

 

[SurreyJohn]

50 minutes ago, tigermad said:

Another quick question, I am currently paying around £280 per month on a 42 month agreement (10k miles per annum and very small deposit). I have recently had quotes to change now and my payments on a car thats about £5k more expensive than my current car was at the start of the PCP seems extortionate. For 15k miles per annum they want nearly £500 per month. Does this seem right? I know they are including the mileage excess in this but this is even after I put down a £2000 deposit!

 

 

Its a sign of the times, you are on a 42 month agreement and things have changed drastically in 2 or 3 years.

 

Used to be good value when only a smallish percentage of cars were sold that way, but there is now so many PCP and PCH deals that market is awash with 2-3 year old cars (which has lowered residuals).  The VT option has meant many finance companies have got burnt, as they sell car on for low value, so now they are pricing it in (to avoid a loss) which has made the deals expensive.

 

In 2016 dirt cheap PCH deals for only 2 years (instead of 3 or 4 year leases) have exploded, so in 2018 will be a glut of 2 year old cars (many under 20k miles), so a 42month, 35k miles car wont look very attractive in comparison.

 

May be worth trying to get a 2 year PCH during second quarter (prices seem to get changed every 3 months, but some deals are until a set quantity is reached, so sometimes end early), expecting a 3 month delivery.  I suspect by 2018 cheap PCH deals will not be as cheap.  Then get a new (paid for with bank loan) car in 2019 (Economic indicators are for a big crash / recession in early 2019) so new discounts should be a plenty in 2019 (but probably no decent PCP or PCH deals)

[tigermad]

Thanks for all the replies. I am booked in with a dealer tomorrow. I am now looking at getting a new Superb, great spec for a similar price to a VRS. Since I now know that I can pay £1500 to VT it and have been looking at the PCP finance figures online then I have at least an idea of what I should be paying. If they claim they need to use more than the £1500 to get me out of the deficit of my current car and into the new one then I will mention that I can just pay £1500 now and walk away and owe nothing more. So hopefully they will just charge me the £1500 and get some kind of discount on the new car. Previous quotes I had they didn't discount the car because they were running PCP/deposit offers which I suppose is technically the same thing.

[glosrich]

You can get discount and the 0% finance and the deposit contribution.

 

I did, I got about 15% off and the £500 deposit contribution and 0%. Run a few carwow quotes to confirm this.

 

As the deposit is now £2k on the Octavia I expect you wont get as much discount, as the £2k is coming out of the dealers profit, but you should be able to get some.

 

The Superb is on a different deal, no 0%, and a smaller contribution.

 

Also some very cheap contract hire deals on the Superb, so check if thats cheaper than a PCP, it usually is.

 

http://www.simpsonsskoda.co.uk/new-car-offers/

 

 

[tigermad]

3 minutes ago, glosrich said:

You can get discount and the 0% finance and the deposit contribution.

 

I did, I got about 15% off and the £500 deposit contribution and 0%. Run a few carwow quotes to confirm this.

 

As the deposit is now £2k on the Octavia I expect you wont get as much discount, as the £2k is coming out of the dealers profit, but you should be able to get some.

 

The Superb is on a different deal, no 0%, and a smaller contribution.

 

Also some very cheap contract hire deals on the Superb, so check if thats cheaper than a PCP, it usually is.

 

http://www.simpsonsskoda.co.uk/new-car-offers/

 

 

Thanks for the reply. The superb has a £2500 deposit contribution and a low pcp rate.  Will check car wow and the link. 

[tigermad]

Hi. Called a garage off carwow today. The offered me a great deal but would mean me vting my car first. The dealer knows and advised about vting it without actually saying the words. I think the best advice from them is to place the order then VT the existing car a few weeks before I pickup the new one. Not sure I will know exactly when this will be but hopefully I won't be without a car for weeks. I have 2 concerns. What if my VT is turned down. I enquired yesterday and the lady at vw finance was very nice and didn't question it when I asked for the figures. The dealer have said they can do the finance now but keep it on the system until just before the car is ready. I am worried that the finance will be declined because I already have a Pcp for a £24k car and will now be trying to add a £30k on top. The dealer thinks it won't be a problem and they will probably realise that I will be paying the other one off. My monthly payments will be £65 less per month over 42 months if I do it this way. 

 

Is the dealer just just saying this because it's what I want to hear? He also said if for some obscure reason the vt doesn't go through then not to worry. I can still keep my old car and they can resell the car on order. Sounds too go to be true to me. 

Edited 10 February, 2017 by tigermad

[GoneToBeemer]

On 08/02/2017 at 12:59, johnrowley said:

 

but if you are a high mileage driver (like me) VT is not an option

 

Why? Mileage doesn't come into it if you are VT'ing.

[AllanDJ]

VT seems to be pretty straightforward, I've just started that process on my own car as of today but in my case the deal would have ended in April anyway, so no issues from Skoda in taking this option, particularly as I'm getting another Skoda to replace it with but in my case a Yeti L & K on a PCH deal which after deposit is about half the monthly cost of my Octavia. In many ways I will miss this car but the financial situation with it just doesn't make any sense whatsoever and unless I was going to keep it for another 4 years or so I don't think it would make sense to actually buy it given the horrendous depreciation on it.

[tigermad]

Just now, AllanDJ said:

VT seems to be pretty straightforward, I've just started that process on my own car as of today but in my case the deal would have ended in April anyway, so no issues from Skoda in taking this option, particularly as I'm getting another Skoda to replace it with but in my case a Yeti L & K on a PCH deal which after deposit is about half the monthly cost of my Octavia. In many ways I will miss this car but the financial situation with it just doesn't make any sense whatsoever and unless I was going to keep it for another 4 years or so I don't think it would make sense to actually buy it given the horrendous depreciation on it.

Will you have 2 finance agreements at same time until the vt is sorted then?

[AllanDJ]

Hopefully not! From what was said today, the situation is that on March 1st I collect my new Yeti and garage has agreed that I can leave the Octavia with them. BCA will call me sometime in next week or so to agree when they will collect the car from the garage, ideally on the same day that I leave it or very soon afterwards. So maybe a slight overlap with both agreements but shouldn't be any more payments on the Octavia as this months has already been paid and next months payment would be over a week after I hand it back.

 

It would be interesting to know what it actually ends up selling for and whether it goes into a normal public auction or one of these private dealers auctions that I've heard about. But whoever ends up buying it will get a very good car, it is in excellent condition, running great, no dents, scrapes or kerbed alloys, currently just over 28,000 miles, the only bits that I can really keep are the spare wheel which I bought separately and will sell on again and I suppose the big rubber mat which protects the carpets in the boot, that was an extra cost bit, which might have some use at some point!

[tigermad]

8 hours ago, AllanDJ said:

Hopefully not! From what was said today, the situation is that on March 1st I collect my new Yeti and garage has agreed that I can leave the Octavia with them. BCA will call me sometime in next week or so to agree when they will collect the car from the garage, ideally on the same day that I leave it or very soon afterwards. So maybe a slight overlap with both agreements but shouldn't be any more payments on the Octavia as this months has already been paid and next months payment would be over a week after I hand it back.

 

It would be interesting to know what it actually ends up selling for and whether it goes into a normal public auction or one of these private dealers auctions that I've heard about. But whoever ends up buying it will get a very good car, it is in excellent condition, running great, no dents, scrapes or kerbed alloys, currently just over 28,000 miles, the only bits that I can really keep are the spare wheel which I bought separately and will sell on again and I suppose the big rubber mat which protects the carpets in the boot, that was an extra cost bit, which might have some use at some point!

That sounds good. Im suprised BCA didn't want to collect the car sooner if you started it yesterday. It normally takes less then 2 weeks. Would be good if you could specify when. 

Do the garage know that you are vting your Octavia when you purchased your yeti then? I am hoping to do a similar thing today when I go for a test drive. I just hope my local garage can get me somewhere near he carwow figures for the car. 

[johnrowley]

9 hours ago, vtec to vrs! said:

 

Why? Mileage doesn't come into it if you are VT'ing.

 

Of course it does - higher mileage generally reflects in lower value of the car - the whole point of vt is tobreturn the vehicle when the value is less than than the outstanding finance 

[SurreyJohn]

11 hours ago, tigermad said:

Hi. Called a garage off carwow today. The offered me a great deal but would mean me vting my car first. The dealer knows and advised about vting it without actually saying the words. I think the best advice from them is to place the order then VT the existing car a few weeks before I pickup the new one. Not sure I will know exactly when this will be but hopefully I won't be without a car for weeks. I have 2 concerns. What if my VT is turned down. I enquired yesterday and the lady at vw finance was very nice and didn't question it when I asked for the figures. The dealer have said they can do the finance now but keep it on the system until just before the car is ready. I am worried that the finance will be declined because I already have a Pcp for a £24k car and will now be trying to add a £30k on top. The dealer thinks it won't be a problem and they will probably realise that I will be paying the other one off. My monthly payments will be £65 less per month over 42 months if I do it this way. 

 

Is the dealer just just saying this because it's what I want to hear? He also said if for some obscure reason the vt doesn't go through then not to worry. I can still keep my old car and they can resell the car on order. Sounds too go to be true to me. 

 

Obviously a credit check for new finance will detect all your current outstandings (mortgage, loans, cards and current PCP).  If the car PCP is ending soon it will likely discount it, otherwise may include it in an affordability calculation.  Obviously many families have 2 cars so don't presume it will assume you only ever need one car loan at a time.

 

What happened with me is VW finance did the credit check prior to deposit and order, they won't let you order if it's conditional on their finance without running the check

[GoneToBeemer]

1 hour ago, johnrowley said:

 

Of course it does - higher mileage generally reflects in lower value of the car - the whole point of vt is tobreturn the vehicle when the value is less than than the outstanding finance 

 

Sorry, probably didn't phrase that quite right.

 

I meant that your right to VT overrules the mileage clause, meaning if you are say 20k over your mileage limit at the point of VT, you are not liable to pay the excess mileage.