PCP contribution dropping

[TheRoq]

When I ordered my 1.5 edition I got £1500 off and 2 free services on the PCP deal.

Now its dropped to £600 for the 1.5 engine and £1250 for all the others.

Sales must be going better than they expected!

[eribaMotters]

Whether sales are better than expected or not, £2k to £2.5K discounts seem to be available through brokers/on-line sites. This makes up a little for the depressed prices on trade in Yetis that a lot of potential owners have.

 

Colin

 

 

[TheRoq]

The £1500 was in addition to any discount. I got nearly £3000 off mine in total.

A broker might be a better option now.

 

I guess the market is being flooded with Yetis if owners are moving to Karoqs.
That is bound to affect prices.

[Karman]

I bought my cars cash and was going to again, I take the pcp out for the discount and free services then pay it off after 2or 3 months. This time I am thinking of not doing that and letting the finance run. So do you not get the value of the final payment in part exchange? Only reading about a the yetis is making me wonder?

[TheRoq]

I was going to buy it on finance to get the discount and services but my dealer told me I could just pay it off straight away.

I plan to keep it longer than 3 years and then I don't have to pay the interest.

 

Not sure about the final payment value, if you're not on PCP though then the trade in price could be a problem.

[TheRobinK]

13 hours ago, Karman said:

So do you not get the value of the final payment in part exchange?

 

On a PCP - no. You get the difference between the current market value minus the final payment (the "GFV")  minus any excessive wear/tear or damage or excess mileage. 

[Nicky_P]

3 minutes ago, TheRobinK said:

 

On a PCP - no. You get the difference between the current market value minus the final payment (the "GFV")  minus any excessive wear/tear or damage or excess mileage. 

In addition, if you switch brands the excess mileage and wear and tear is irrelevant as only the GFV needs to be settled by whoever you trade in with, should you choose that route......

[Karman]

So your not out of pocket, by that I mean if the car is put in part exchange they don’t value your car less than the final balloon payment and you have to make the payment up to the balloon final payment?

[TheRobinK]

You are not out of pocket provided that the current market value is greater then the final payment. So - if your car has a market value of £10,000 and the final payment (GFV) is £8,000 then you would have £2,000 towards your new car's deposit. 

[snowjoe]

20 minutes ago, Karman said:

So your not out of pocket, by that I mean if the car is put in part exchange they don’t value your car less than the final balloon payment and you have to make the payment up to the balloon final payment?

The GMFV is what the finance company predicts it’ll be worth and what you’d need to pay to own the car at the end of the fiannce term. 

Any dealer of any manufacturer can offer whatever they like for your car, they’ll know it’s on finance. If it’s more than the GMFV then you’re in positive equity and can put that towards a new car. They can offer you less and therefore you’re in negative equity which will count against your new car deal. 

 

In my experience Skoda dealers offer for for their own cars. 

 

I sold mine privately as Skoda wouldn’t match GMFV and started another PCP which I have since paid off through a bank loan to save on interest but keep the PCP incentives.

 

 

[skoda1982]

19 hours ago, TheRoq said:

When I ordered my 1.5 edition I got £1500 off and 2 free services on the PCP deal.

Now its dropped to £600 for the 1.5 engine and £1250 for all the others.

Sales must be going better than they expected!

 

Plus 2% More interest

[Macdemon]

I have a PCP question................

 

If I have a PCP deal with dealer A can I opt for a new Karoq when the deal is nearly over with dealer B or to I have to continue with the original dealer?

[eribaMotters]

You do not have to continue with the original dealer. They are just the agent of the [VW] finance company.

 

Colin

[Macdemon]

Thanks Colin, I had another dealer lined up although there is nothing wrong with the dealer I'm getting my first karoq from.

 

I may even play them off against each other to see who will give me the best deal.

[skoda1982]

3 minutes ago, Macdemon said:

Thanks Colin, I had another dealer lined up although there is nothing wrong with the dealer I'm getting my first karoq from.

 

I may even play them off against each other to see who will give me the best deal.

 

I tried that the 2nd dealer said he is not having a bidding war and said i don't want your business 

 

[Macdemon]

Well he's an idiot then, better to make a smaller profit than none at all.

[MarcusKaroq]

1 hour ago, skoda1982 said:

 

I tried that the 2nd dealer said he is not having a bidding war and said i don't want your business 

 

 

Haha I tried this also but the dealer who I brought through gave me extra off the car. 

 

He said he wasn’t interested in playing games, pop in and talk numbers lol. 

[ethereum]

On 15/04/2018 at 22:49, Karman said:

I bought my cars cash and was going to again, I take the pcp out for the discount and free services then pay it off after 2or 3 months. This time I am thinking of not doing that and letting the finance run. So do you not get the value of the final payment in part exchange? Only reading about a the yetis is making me wonder?

How much does that cost you roughly in interest after a couple of payments?

 

I was tempted to do it within 14 days...

[Karman]

To be honest i cant remember , pcp are front loaded interest so at the beginning you are paying interest off first like a mortgage.

[Raymondo111]

On 16/04/2018 at 13:28, snowjoe said:

The GMFV is what the finance company predicts it’ll be worth and what you’d need to pay to own the car at the end of the fiannce term. 

Any dealer of any manufacturer can offer whatever they like for your car, they’ll know it’s on finance. If it’s more than the GMFV then you’re in positive equity and can put that towards a new car. They can offer you less and therefore you’re in negative equity which will count against your new car deal. 

 

In my experience Skoda dealers offer for for their own cars. 

 

I sold mine privately as Skoda wouldn’t match GMFV and started another PCP which I have since paid off through a bank loan to save on interest but keep the PCP incentives.

 

 

If you are at the end of the PCP and do not want to buy another car you can just hand the keys in and subject to no excess mileage and no damage over fair wear and usage you are not liable for any shortfall between the GMFV and the actual value of the car, the key is Guaranteed Manufacturers Future Value, if they get it wrong and values tank it's down to them. If you were to hand it back before the end of the PCP then it's a different story where potential negative equity may come into play.

[snowjoe]

54 minutes ago, Raymondo111 said:

If you are at the end of the PCP and do not want to buy another car you can just hand the keys in and subject to no excess mileage and no damage over fair wear and usage you are not liable for any shortfall between the GMFV and the actual value of the car, the key is Guaranteed Manufacturers Future Value, if they get it wrong and values tank it's down to them. If you were to hand it back before the end of the PCP then it's a different story where potential negative equity may come into play.

 

Indeed you can. 

 

I was a bit worried about aligning dates so as not be without a car and didn’t want the potential hassle over any damage that wasn’t considered fair. There was a dent that they could have made a fuss over.

 

I was fortunate to opportunistically find a great buyer on here and got a very good price for it. 

 

If I did PCP again (unlikely) I’d certainly consider private sale towards the end of it if I was in negative equity, a chance to get some positive equity!

[Karman]

“if they get it wrong and values tank it's down to them.”

That is what I wanted to know really, if they get the balloon payment wrong and they have over valued the car at the end of your contract, that they actually take the hit and not ask you for extra payment, other than mileage fair wear and usage.

[Tenchfisher]

I am buying on PCP to get the £1500 and 2year’s free services, but I will be paying it off after 28 days. Apparently a lot of people do this, so the option probably won’t be around for too long. I was offered £4500 trade in, but was advised to try Evans Halshaw, who are currently offering to beat any We Buy Any Car offer. I got £5600 for my car and the money was in my bank a couple of days later.

[Raymondo111]

1 hour ago, snowjoe said:

 

Indeed you can. 

 

I was a bit worried about aligning dates so as not be without a car and didn’t want the potential hassle over any damage that wasn’t considered fair. There was a dent that they could have made a fuss over.

 

I was fortunate to opportunistically find a great buyer on here and got a very good price for it. 

 

If I did PCP again (unlikely) I’d certainly consider private sale towards the end of it if I was in negative equity, a chance to get some positive equity!

Unfortunately if you are on a PCP the car technically doesn't belong to you so if you wanted to sell it you would have to pay the settlement to the Finance Company so the negative equity could still come into play, in this case if you can afford it just let the PCP run and walk away, I have done all sorts of car purchases over the years, cash/PCP/finance and for my current car I have gone down the Personal Contract Hire route as financially it was a no brainer. My amortised payments over the 2 year PCH work out in total less than the depreciation that I suffered on my previous car a Seat Leon FR plus the car is taxed for the duration and normally there is a servicing deal to be had at a discount.

[snowjoe]

7 hours ago, Raymondo111 said:

Unfortunately if you are on a PCP the car technically doesn't belong to you so if you wanted to sell it you would have to pay the settlement to the Finance Company so the negative equity could still come into play, in this case if you can afford it just let the PCP run and walk away.

 

Thanks but I am aware of that. 

 

I sold the car for more money than the settlement figure and the buyer settles the finance and you keep the additional money to use as a deposit for your next car. Which is the situation people believe they’ll be in come the end of a PCP. The market might dictate otherwise. As I imagine it is at the moment for other diesel owners on PCP. 

 

I thought about PCH but the mileage I do makes it expensive and I wanted some extra options which isn’t really cost affective over 2 or 3 years on a lease. I’m thinking much longer term on ownership of the current car.