Hire Purchase

[juan27]

Anybody know what kind of HP deal VW Finance are offering on a new Octavia VRS? Bank loans seem to be around 3% APR and just wondering if there's cheaper money available.  PCP isn't very appealing to me due to the poor residuals, particularly if you add in £2-3K of options.   

[valvedoctor46]

Hey juan, not sure about the VW finance deals but take the time to check out the HP deals on the site "all car leasing" some cracking deals on the Octavia vrs at the minute. Its in the Hot Deals section.

[juan27]

Thanks but I don't want a PCP/PCH.  

[tigermad]

5 minutes ago, juan27 said:

Thanks but I don't want a PCP/PCH.  

Whats wrong with PCH? You haven't got to worry about depreciation with that.

[LHVRS]

40 minutes ago, juan27 said:

Anybody know what kind of HP deal VW Finance are offering on a new Octavia VRS? Bank loans seem to be around 3% APR and just wondering if there's cheaper money available.  PCP isn't very appealing to me due to the poor residuals, particularly if you add in £2-3K of options.   

 

Isn't HP buying the car the same as PCP so the residual will be the same. If you want to buy the car why not go PCP.

 

I went with PCP with the mindset to keep the car for 8-10 years but I have the option to give it back after 3 years if my plans change. PCP is also 0% so its free money for 3 years. 

 

 

[juan27]

3 minutes ago, tigermad said:

Whats wrong with PCH? You haven't got to worry about depreciation with that.

 

Nothing "wrong" with it. Just not what I'm asking about. 

[tigermad]

2 minutes ago, juan27 said:

 

Nothing "wrong" with it. Just not what I'm asking about. 

.... sorry didnt realise you want a straight forward paying it off option

Edited 11 April, 2017 by tigermad

[juan27]

Just now, LHVRS said:

 

Isn't HP buying the car the same as PCP so the residual will be the same. If you want to buy the car why not go PCP.

 

I went with PCP with the mindset to keep the car for 8-10 years but I have the option to give it back after 3 years if my plans change. PCP is also 0% so its free money for 3 years. 

 

 

 

PCP is not 0% on the facelift at the moment. So its not free money. 

[LHVRS]

Just now, juan27 said:

 

PCP is not 0% on the facelift at the moment. So its not free money. 

Ah ok, so whats the difference between HP to PCP in %

[juan27]

Just now, tigermad said:

Not sure what you are asking for then because PCH is leasing as far as I can see.

 

I'm asking about old fashioned hire purchase. You put down a deposit and pay the remainder + interest over a number of months then you own the car.  

[tigermad]

Just now, juan27 said:

 

I'm asking about old fashioned hire purchase. You put down a deposit and pay the remainder + interest over a number of months then you own the car.  

Cheers, I amended my post above just before you replied :-) sorry for the mixup

[juan27]

1 minute ago, LHVRS said:

Ah ok, so whats the difference between HP to PCP in %

 

Dunno, I'm asking what the APR on HP might be at the dealers. 

[SC03OTT]

Phone one and ask?

[LHVRS]

1 minute ago, juan27 said:

 

Dunno, I'm asking what the APR on HP might be at the dealers. 

Not sure but PCP is 2.9% at the moment, so this is a better option to the 3% bank loan. No doubt Skoda will bring back the 0% PCP at the end of the year. 

[juan27]

10 minutes ago, SC03OTT said:

Phone one and ask?

 

Fair enough, just wondering if anyone knows. I wonder why VW aren't advertising HP rates any more?  

[juan27]

11 minutes ago, LHVRS said:

Not sure but PCP is 2.9% at the moment, so this is a better option to the 3% bank loan. No doubt Skoda will bring back the 0% PCP at the end of the year. 

 

Well I'm not sure. Say you want to keep the car 5+ years is a 2.9% PCP cheaper when you've refinanced the balloon at an unknown future rate?

 

 

[glosrich]

VWFS arent usually as competitive with HP, as they want to push you into a PCP.

 

I'd expect the APR on their HP to be around 5%.

 

Bank loan will be cheaper.

 

Benefit of HP is that its secured on the car, rather than on your house for example. So if you cant pay, they repossess the car, not your house.

[adambrownb]

If you want to own it I would get a bank loan and then use a broker to source the car a lot cheaper for you. I saved £8,000 on my current one through a broker. My next one is going to be on PCH though as I don't like the hassle of having to sell it privately every few years. 

[Jono]

I'd agree.

 

If you want to own it, you are always in a good negotiating position if you have the "cash" from elsewhere; bank, savings, mortgage etc.

 

I understand that a lot of the best finance deals and discounts are part-paid in some fashion by the dealer, effectively changing the cost-price and reducing the discount they can/will offer.

 

 

Edited 11 April, 2017 by Jono
updated

[juan27]

40 minutes ago, glosrich said:

Benefit of HP is that its secured on the car, rather than on your house for example. So if you cant pay, they repossess the car, not your house.

 

I'm looking at an unsecured loan so HP would have to be at a much better rate.  

Edited 11 April, 2017 by juan27

[shanemeh]

Bank loan better option.

 

Not restricted by miles etc and get rid and get a new car whenever you want. 9 times out of 10 it'll work out cheaper too.

 

I got mine on a 2.9% Sainsbury bank loan. Manged to get 23% off list price too so I could sell this car now and actually make a profit clearing the loan.

Edited 11 April, 2017 by shanemeh

[mo1965]

I am looking at PCH this time as I look to replace 14 plate vRS with 2017 FL vRS. PCP coming to an end in November. Looking to place order around May time. Has anyone purchased via PCH and has anyone used a 3rd party leasing firm that they can recommend. Haven't approached Skoda dealer yet, but a quick search on the web shows some good deals where monthly cost coming in les than what I am currently paying.

[threadbear]

Bought my nearly new Octavia on a NatWest personal at 3.9%. After 3 years the car will be mine. I did apply for a Sainsbury's personal at 2.9% but agreement was sent out to sign it was 6.2% so was declined. I know the Octavia will depreciate quiet heavily, but I plan to keep a long time and have no worries about mileage which I would have on a PCP. I did have a PCP but didn't like it. 

[juan27]

What happens on a PCH if your circumstances change or your really hate the car after a year (say)? Presumably the financial penalty is fairly harsh?

[glosrich]

Yep you have to pay a lot of whats outstanding:

 

https://www.nationwidevehiclecontracts.co.uk/guides/ask-nvc/early-termination-ending-your-lease-contract-early