My current PCP runs out at the end is Sept.  My VRS is 3 years old and I have only done 13500 miles, although I will shortly be using it a lot, lot more.  Should I, A /pay the 10 grand (ish) balloon payment and keep it, B/ sell the car privately and make a few grand ( potentially) and start a new pcp,  or C/ go back to the dealer and part ex it in against a new VRS and start a new PCP.  I quite fancy the PCP because it is a rather hassle-free sort of motoring.   Thanks for any advice/ideas. 

Speak to a dealer first so you know what the position is. I was told that to get exactly the same car, just newer, was going to cost me over £50 per month more when the dealer invited me in for their “special existing customer offer” (not Skoda). So whilst you might like the PCP, you have to decide if it makes sense for you, financially. The outcome of speaking to the dealer might change your options. 

Other thing to bear in mind is that there might be extra discounts/ incentives later on this year to keep the production lines busy just before they switch over to making the mark 4 Octavia. There were certainly some fairly hefty discounts being offered last month at my local dealer in Glasgow.

i'd keep the car, especially if you've got the cash to pay it off,  13500 miles is nothing and you know the history of the car.

with pcp's most people hand the car back and sign up for another, so there stuck in a never ending cycle paying for cars that they never own.

good for the dealers and finance companys though

If you can find out where the lease company auctions their returned cars, another option is to let it go then go and buy it back at auction for less than the 10 grand.

 

Probably safer to just keep it though. I'd have someone's arm off for a 13k mile vRS for 10 grand.

 

Do you have VCDS or know anyone who does? If you're going to keep it, I'd check it for any fault codes and get them fixed on the lease company before September if you're going to keep it.

Edited 28 March, 20197 yr by Papfox

4 hours ago, Papfox said:

If you can find out where the lease company auctions their returned cars, another option is to let it go then go and buy it back at auction for less than the 10 grand.

 

Probably safer to just keep it though. I'd have someone's arm off for a 13k mile vRS for 10 grand.

 

Do you have VCDS or know anyone who does? If you're going to keep it, I'd check it for any fault codes and get them fixed on the lease company before September if you're going to keep it.

 

It's not a lease, it's PCP. I also think that auction buy back suggestion is somewhat risky.

 

OP I'd probably purchase if the balloon is less than what's it's worth. Gives you the flexibility to sell and start a new PCP if you want, or keep it if you'd prefer. What's the value with webuyanycar?

 

I bought my VRS used at 3 years old and 14k. It was still very much like a new car condition wise. Someone is potentially getting a great used buy if you don't keep it 

Edited 28 March, 20197 yr by ahenners

To be honest, I don't have the ten grand so I would be getting a loan which would cost ( approx) £280 pm.  I currently pay £297pm for the car anyway, and if I went for a new pcp, I wouldn't want to pay any more than that ! So I could argue that if I get a new pcp I would be getting a new car for the same monthly payment?

 

Thanks for the suggestions guys, I have plenty to think about! 

Edited 28 March, 20197 yr by stubev156

If those figures are accurate then I'd have thought it a no-brainer - new PCP  ( that's assuming no deposit with a new PCP? )  Just a pity it's ending in 6mths rather than 12mths.

 

mk4: I get the mark 4 model around the corner so incentives likely on current model - but wouldn't that apply more to cash / loan buyers?  PCP is based on how much the car will be worth at end of lease so where the buying price may reduce so will the used prices on mk3. When Mk4 comes along the buying price will be greater, but so will the used value. My guess is there won't be much difference in PCP payments between mk3 and mk4.

 

loan: The trouble with taking out a loan is you may have to pay back a fair chunk of the interest if you were to buy / sell the car. WeBuyAnyCar is mentioned above but there are others who in my experience I've used and offered more money. Try WeWantAnyCar or ArnoldClark's buying service - it guarantees a quick sale so may make the loan option more valid.

 

Yes you could buy car for £10000 but then you need to sell (quickly) for a profit. You'd be competing against garages who will offer finance and warranties etc and of course people would be in exactly the same position as you - buy a used 3yr old car for £280 a month or a brand new car for £290 a month?  If you don't have capital then buying and selling for profit carries a fair amount of risk. 

I have just got rid of our 13 plate meriva on hp for a 16 plate fabia colour edition. It was a no brainer! Almost the same price per month for peace of mind motoring. The meriva nearly out of warranty, more expensive to tax, insure and run. 

 

Pcp is great if you accept your not going to own the car outright but are happy to change it every 3 years or so

I was in the exact same situation around October November last year. 220 TSI VRS with 18k miles on it. 

 

I treat cars like any other commodity, like gas and electric. Its a monthly bill.

 

In my case I had some equity in the car and took another PCP for a MY19 VRS. If I hadnt upgraded my options I would have ended up paying £30 ish a month less, as it stands I went a bit maverick on the options and I pay £30 a month more now, but for that I have plenty I didnt have before (DSG, DCC and VC being some of them). 

 

In the next 3 years I will be in the same position making the same choice, it will be an important one though because by that point not much will be petrol only and we will be knocking on the door of the new legislation for speed control. 

 

I wouldnt be too concerned with the mk4. Ive been there done that with brand new versions and it didnt end well. I'd be much happier to jump.on board after the first revision of the mk4 than be the beta tester. I dont know if its true but I did read the VRS wouldnt be until late 2020 anyway?

 

For me I dont want an older car out of warranty (suits many people though) so I have to change. Its just a decision at that point if I want an A to B box on wheels, something practical or something lavish. I choose down the middle based on the monthly cost being what I 'want' to pay, rather than 'afford'. Good luck.

 

5 hours ago, Scot5 said:

buy a used 3yr old car for £280 a month or a brand new car for £290 a month?  If you don't have capital then buying and selling for profit carries a fair amount of risk. 

To add to my previous post, this is where I was at with my PCP. Which is why I’ve gone down PCH route for the first time, as it meant new car - and a significantly better spec car in fact - for a lower monthly payment, it turns out. There are excellent deals to be had, especially if you’re a little flexible with the car you’d have. 

 

I’m still waiting for the lease car (VW production delays) but I think I’m likely to stick to leases for the foreseeable. As I see it, you can get more bang for your buck and don’t carry the financial uncertainty/burden that you do with PCP. Great if like @ExSEAT you’re happy to think of your car as a commodity. 

Keep it! The way i see it, if someone offered you that car for 10k (or whatever the balloon is) you would think it would be a good deal!! 

Keeping it seems to be a sensible suggestion in my eyes. Even if you don't want it, as long as you get a loan that you can repay early without significant penalty,  looking at Autotrader, I think you should be able to sell it reasonably quickly for something in the twelve grand ballpark.

 

I like "fettling" my vRS. On paper, you probably can't do things to a car that is the property of a lease or PCP company so this would be a consideration for me.

Thanks for your answers guys.  Not sure what I am going to do! Keep it, sell it privately, or get a new PCP....I will have to decide.  Speak to the dealer first I think! Thanks again. 

If you keep it, run it for a year or two and sell it, it will be worth something. 

 

Say only £5k, which is a low estimate.

 

you do don’t have to pay a new deposit.

 

you don’t have to buy gap

 

you don’t have to pay £280 per month to not own it.

 

if you want to sell at any point you can.

 

if you sell that 5k is yours, unlike on a pcp.

 

also you can buy an extended warranty for say £500 for 2 years.

 

finally, 10k bank loan for a car at about 3% over 2 years is probably going to cost you about £400 in interest, as opposed to the silly finance rates, which are closer to 9

 

 

On 27/03/2019 at 23:11, AllanDJ said:

...there might be extra discounts/ incentives later on this year...

 

stubev156 has to be careful with this one as the Skoda new car deals have got worse from April compared to the first three months of this year e.g. Skoda finance is now more expensive at 5.9% rather than 5.5% and the first two services that were free are now a chargeable extra at £159.  Now if there is a bigger discount to compensate then fair enough.  Pricing doesn't look as attractive as it was in January which also included an extra £500 test drive allowance.  I appreciate you won't have a time travelling machine to get the Jan deals.

 

My advice - don't leave it to the last minute and be aware of what has been on offer in previous quarters so you will know whether you are getting a good deal or not.

 

Good luck.

A 3 year old VRS with 13500 for 10k.

 

You also know it's history and reliability.

 

Once you pay off the loan in 3 years time it will still be worth a chunk of money.

 

£10k loan over 3 years shouldn't cost much more than £450 in interest.

Edited 2 April, 20197 yr by logiclee

On 30/03/2019 at 12:20, cheezemonkhai said:

 

finally, 10k bank loan for a car at about 3% over 2 years is probably going to cost you about £400 in interest, as opposed to the silly finance rates, which are closer to 9

 

 

On 02/04/2019 at 19:17, logiclee said:

 

£10k loan over 3 years shouldn't cost much more than £450 in interest.

 

Whilst these two statements are true, they miss an important point: for most people, the most important financial factor is monthly cost. If the monthly cost for a loan to pay off a 3 year old car is more or less the same as the monthly cost for a brand new car, then you have to wonder which makes better sense. 

 

The right decision will be different for different people, I suppose. 

25 minutes ago, maffyou said:

 

 

Whilst these two statements are true, they miss an important point: for most people, the most important financial factor is monthly cost. If the monthly cost for a loan to pay off a 3 year old car is more or less the same as the monthly cost for a brand new car, then you have to wonder which makes better sense. 

 

The right decision will be different for different people, I suppose. 

 

While your point looks to make sense on the surface, it kind of feels as if the salesman's tricks have caught you up a little.

Buy into a new car, pay huge depreciation if you sell it before the lease is up and pay interest, but having nothing to sell at the end (No there is rarely equity in a car)

 

This vs the bank loan, where you may pay the same amount for a car, but can sell it at any time to make some money back and go buy whatever you want.

So paying £300 per month for use of a car vs £300 a month for something you can sell and get money back on isn't really comparable (Much as the sales people want you to think this).

 

Where you do however have a point is that some people will want to change a car and have a warranty for said car, with minimal costs bar servicing.

This case, it may well make sense, however you are then tied into servicing at a main dealer and making sure the car is spotless when it goes back.

 

Personally, with all the emissions mess, the changing standards, emissions charging zones and the rest of it coming in, I'd be sitting on an old car, looking for the best rate on a loan to bring the costs down, and sitting pretty while these are sorted out.

Sure I could stand to lose £10 if it was worth zero, but that's unlikely and still less than 1 year of depreciation on a new car.

 

I know talking from dealers that a lot of people are doing this, until the EU6d/d Temp stuff is sorted out and the taxation/charges become clear around this.

 

Absolutly this equation is different for everyone and it's very much personal,  but I would ask if you want to change cars every 2-3 years, then why not just lease instead?

 

Edited 3 April, 20197 yr by cheezemonkhai

49 minutes ago, cheezemonkhai said:

 

While your point looks to make sense on the surface, it kind of feels as if the salesman's tricks have caught you up a little.

I’ve only ever bought one new car, so I don’t think I’m under the thrall of the salesman. I also have a degree in mathematics so I’m pretty decent when it comes to numbers. 

49 minutes ago, cheezemonkhai said:

Buy into a new car, pay huge depreciation if you sell it before the lease is up and pay interest, but having nothing to sell at the end (No there is rarely equity in a car)

 

This vs the bank loan, where you may pay the same amount for a car, but can sell it at any time to make some money back and go buy whatever you want.

So paying £300 per month for use of a car vs £300 a month for something you can sell and get money back on isn't really comparable (Much as the sales people want you to think this).

They’re only not comparable if you have any intention of getting rid of the car within a fixed timeframe. The actual monetary value of a car is largely meaningless because most people buy on PCP (about 80% IIRC) as it’s the only way most people can actually “afford” to buy most cars. You have a monthly budget and whether that goes on a new car into depreciation or a balloon payment on your PCP doesn’t actually make any difference to your budget. 

 

The only financially sensible way to buy a car is to buy used and with a bank loan or, even better, for cash. Cars are financial black holes however you buy them. 

49 minutes ago, cheezemonkhai said:

Where you do however have a point is that some people will want to change a car and have a warranty for said car, with minimal costs bar servicing.

This case, it may well make sense, however you are then tied into servicing at a main dealer and making sure the car is spotless when it goes back.

 

 

49 minutes ago, cheezemonkhai said:

Absolutly this equation is different for everyone and it's very much personal,  but I would ask if you want to change cars every 2-3 years, then why not just lease instead?

 

Leasing and PCP, from a personal financial viewpoint, are very similar in that all that matters is the monthly cost matching your budget. 

2 minutes ago, maffyou said:

I’ve only ever bought one new car, so I don’t think I’m under the thrall of the salesman. I also have a degree in mathematics so I’m pretty decent when it comes to numbers. 

They’re only not comparable if you have any intention of getting rid of the car within a fixed timeframe. The actual monetary value of a car is largely meaningless because most people buy on PCP (about 80% IIRC) as it’s the only way most people can actually “afford” to buy most cars. You have a monthly budget and whether that goes on a new car into depreciation or a balloon payment on your PCP doesn’t actually make any difference to your budget. 

 

The only financially sensible way to buy a car is to buy used and with a bank loan or, even better, for cash. Cars are financial black holes however you buy them. 

 

Leasing and PCP, from a personal financial viewpoint, are very similar in that all that matters is the monthly cost matching your budget. 

 

Don't take this the wrong way, and I'm am not looking to have a go about any maths etc.

 

That being said people who can't afford a car except on PCP can't afford the car they are driving.

With things looking the way they are now, this is a dangerous place to be.

 

Sure a bank loan at the same amount per month is no better off, but at the end of that bank loan you have something you own that you can sell or you can drive until it no longer works and save money in the mean time.

 

I do agree with buying the used car with cash/bank loan comment, but buying at the end of a PCP, many of which were zero percent is effectively doing just that.

 

I'll be honest and say that I have just done exactly that.

 

Minimum deposit on a PCP, plus the VAT lost the instant I drive the car away was more than the balloon payment required to keep the old one, so it was a no brainer.

The new car wasn't anything fancy either and the price was very heavily discounted.

 

It is of course personal preference, but if you can't afford a car except to loan it time after time after time, then you're paying the big depreciation curve over and over for others to get cheap cars.

 

On the PCP vs lease, I say this as lease is usually cheaper PM, with a smaller deposit, hence the question.

 

 

Back to the OP point, I think 10k for the car is pretty good.

The price you got per month was that from skoda (Who wanted approx 9% from me) or from a bank who wanted approx 3%?

 

 

Gents, wow thanks for further replies which all make sense to me.  I have started a dialogue (via email) today with the dealer I got the car from, just to see what is on offer/offers.  I was told that you can now only buy the VRS Challenge, anyone else heard this? I may have misunderstood.

 

I also have some interest from a friend in my current car, I suspect I could sell it to him ( another option) for around 14 grand, but I would have to check the book price. 

 

Thanks again for all of your answers. 

9 hours ago, stubev156 said:

 

I was told that you can now only buy the VRS Challenge, anyone else heard this? I may have misunderstood.

 

 

You can still build your own 245 or 184 TDi Vrs on the Skoda Website.    Dealer might be telling porkies.

6 hours ago, Auric Goldfinger said:

 

You can still build your own 245 or 184 TDi Vrs on the Skoda Website.    Dealer might be telling porkies.

Yes I saw that, maybe I misunderstood him...

Just because you can build it online, doesn’t mean you can buy it. It may be the rest are stock only.