Anyone else noticed PCH costs have just increased quite dramatically and also terms like 3+23 are generally not available?

Hi there, 

 

Speaking from a dealer perspective - the payment profile is definitely still available, VWFS have now introduced upto 9 payments upfront to help lower the cost of the monthly rental. 

 

You are correct - the costs have gone up - in some cases, dramatically. This is because is Q1 there was a lot of support (I suppose for order take) and we have noticed in Q2, the support levels across most models have dropped, thus increasing the monthly figure. 

 

I hope this helps.

Given the news about sales slumps... I'm teasing myself out to the next quarter. Offer seem to come and go quite quickly now, so quarter by quarter purchasing choices seem fair.

 

Just have to decide on the day if it's a vRS or a 280 Superb

 

I was also led to understand that presently PCH does not fit into the dealers 'bonus' target scheme. So you need to find the biggest discounting PCH dealer, then apply to match. The dealer might say no, they might say yes. They guys we used said yes to most, bettered a few, but some days, they had to pay staff, electric bills and choose not to match or better. Because there was no 'target' they could actually run there fleet business.

 

We also need to factor in the euro and future values. If future values in 2 or 3 are looking like they will dive (diesel) we have to pay for that. Because VW FS isn't a charity.

 

It maybe that PCH 'cheap' days are over, maybe they will be back, next quarter.

 

I noticed this as well I was seriously considering a Karoq as the next family car but now seems  to have been put out  of our price range with an extra £50 p/m added to the price for a 1.5TSI SEL shame!

10 minutes ago, Matt_West_Mids said:

I noticed this as well I was seriously considering a Karoq as the next family car but now seems  to have been put out  of our price range with an extra £50 p/m added to the price for a 1.5TSI SEL shame!

 

I work in commercial trade finance and money market (interest) rates have crept up  (the rates for commercial interest rate swaps covering next 2-10 years)

I think there are 2 other factors : a worry on residuals (especially diesel); and worry about Regulators demanding compensation if deals are mis-sold (strictly if care is not taken to ensure affordability can be met)

 

So yes, the era of dirt cheap PCH is over, and is likely to affect the PCP market as well

 

The new car market has made a seismic shift.   Although there is talk of doom and gloom and redundancies, and sales falling, this ignores the fact that sales of petrol cars and hybrids are up, and some models have waiting lists of 6+ months.   What is really meant is that new car sales are being restricted by manufacturers inability to produce the variants their customers are choosing (hence the 6+ months waiting lists).  I actually have a new car on order (ordered early April, but delivery is not expected until November due to shortage of petrol engines and DSG gearboxes).  So I am also in the car that I want to have, both now and in 5-8 years is so popular, it has delays camp. 

 

  I have chosen to buy this time instead of doing a PCH (my first sentence should give a clue how I see rates going).  I could get a car for less, and quickly, but it wont really be what I want,  so I prefer to wait.  

If I buy a new Fabia on a currently 6.9% pch I would get discounts for doing that (Skoda contribution etc.) Am I then at liberty to get a cheaper loan and pay it all off?

 

Maths and finance were never a strong point but would this make sense?

5 minutes ago, RickW said:

If I buy a new Fabia on a currently 6.9% pch I would get discounts for doing that (Skoda contribution etc.) Am I then at liberty to get a cheaper loan and pay it all off?

 

Maths and finance were never a strong point but would this make sense?

 

yes,   the lower the interest rate the less the fee (if alternative loan is different length, compare the total amount repayable)

 

there is a short cooling off period 14 days

later can then ask for a settlement figure and pay off the loan in full (keeping the PCH discount)

 

There are some threads on this somewhere (think they are in Superb section)

 

 

Thanks John.

 

Does the 14 days cooling off start on the day the agreement is signed well before the new car arrives?