PCP withdrawal within 14 days!

[andygman]

So it was always the plan to take Mr Skoda’s finance offer and PCP then settle early. 

 

This is has now been done. Did it within 14 days they were only able to charge me £43 interest on £20800 of PCP! 

 

No catch 5 minute phone call job done. 

 

Savings and Bank loan to settle so for same money per month as PCP I now have a 2.9% loan and a car that I own. 

 

List St price on mine was £33800 paid £27300 through drive the deal. 

 

Happy days. 

[Kenai]

Great way to buy a new car as a 'cash buyer' when they're offering big discounts for taking out finance

[Auric Goldfinger]

If you had done it 5 minutes after signing for the car you would have saved the £43. 

[andygman]

59 minutes ago, Auric Goldfinger said:

If you had done it 5 minutes after signing for the car you would have saved the £43. 

That was the plan but was busy driving from Great Yarmouth to Cardiff! At speed. 😉

[Phil245]

It looks really nice on the 19's, making me envious.....!

[BoxerBoy]

And you’ll keep it for how many years ?????

[andygman]

3 hours ago, BoxerBoy said:

And you’ll keep it for how many years ?????

3. Maybe more. See how it goes. But it’s mine to sell. 

[Eddie-NL]

Nice car, I take it was Simpsons

 

 

[SC03OTT]

I’m not 100% convinced this will save you money but I’ll concede I’ve not done any sort of calculations for it. If the only goal was that it’s yours and you can sell it anytime, well, you can do that with a car on PCP anyway.  A better interest rate perhaps? Yeah, ok, I can see that. 

[Guest]

1 hour ago, SC03OTT said:

 If the only goal was that it’s yours and you can sell it anytime, well, you can do that with a car on PCP anyway.

 

The flaw with that statement is it's not your car to sell.  You can end the PCP early ( and pay the resulting penalties ) but you can't sell the car.

[SC03OTT]

Just now, Scot5 said:

 

The flaw with that statement is it's not your car to sell.  You can end the PCP early ( and pay the resulting penalties ) but you can't sell the car.

 

By the letter of the ‘law’, you’re quite correct. Ultimately though, your finance company doesn’t give a monkeys where the settlement money comes from. 

 

So it is entirely possible to sell your PCP car, as I did two years ago. Buyer pays VWFS and any balance got handed to me. Car sold. PCP settled. 

[Octaviarse]

4 hours ago, SC03OTT said:

I’m not 100% convinced this will save you money but I’ll concede I’ve not done any sort of calculations for it. If the only goal was that it’s yours and you can sell it anytime, well, you can do that with a car on PCP anyway.  A better interest rate perhaps? Yeah, ok, I can see that. 

2.9% v 5.9% ... that's where the money's saved. 

[310golfr]

7 hours ago, Octaviarse said:

2.9% v 5.9% ... that's where the money's saved. 

but even with the lower interest rate, he might be worse off , especially if only keeping for 3 years

the old question of 3 years depreciation  v  3  years hire cost

[Octaviarse]

I didn't see leasing mentioned by the op; my understanding was that the comparison was between PCP or unsecured bank loan. 

[VRS_White_Hatch]

I think you get a Skoda or dealer contribution towards the deposit if you take finance, in the region of £3k. A dealer I spoke to also offered an extra years cover on the warrantee. I went for an 8 month old £18,500 used VRS as that's such a big depreciation hit already taken by the first owner. The pleasure of owning a new or nearly new car v's the dreaded depreciation. When you think about it most new cars cost you at least £500 per month which is why lease and PCP deals are so popular.

[andygman]

On 15/09/2019 at 00:25, Eddie-NL said:

Nice car, I take it was Simpsons

 

 

Yep.

[shyVRS245]

4 minutes ago, andygman said:

Yep.

Andy slightly off topic but not going to Cardiff now next Sunday but off to York on Saturday instead. Women have a habit of changing their minds.

[andygman]

9 hours ago, 310golfr said:

but even with the lower interest rate, he might be worse off , especially if only keeping for 3 years

the old question of 3 years depreciation  v  3  years hire cost

Depreciation will be based on the list price which I already demolished. PCP deposit was over 6k. After three years you give the car back. That money is gone. I get PCP as a product but ultimately that initial deposit is money down the drain. I was in a lucky position to have some money saved and then a loan to bridge the gap. 

[andygman]

21 hours ago, SC03OTT said:

 

By the letter of the ‘law’, you’re quite correct. Ultimately though, your finance company doesn’t give a monkeys where the settlement money comes from. 

 

So it is entirely possible to sell your PCP car, as I did two years ago. Buyer pays VWFS and any balance got handed to me. Car sold. PCP settled. 

And initial deposit gone forever........

[lway]

1 hour ago, andygman said:

Depreciation will be based on the list price which I already demolished. PCP deposit was over 6k. After three years you give the car back. That money is gone. I get PCP as a product but ultimately that initial deposit is money down the drain. I was in a lucky position to have some money saved and then a loan to bridge the gap. 

Yeah, if you hand back the car and walk away that deposit money is gone.

 

The key with PCP is after the three years the value of your car has to be at least equal to the Guaranteed Minimum Future Value + Any deposit you gave at the beginning + the value of any trade in you did otherwise you are losing money.

Some relatives of mine who did PCP really didn't understand this and by not paying attention to the mileage went over and ended up losing out and didn't even realise until I pointed it out.

 

I had it explained to the missus so when we went to change her Opel which was on PCP with a GMFV of 10,500 and her initial deposit of 1k plus a trade in of a 5k worth of an old Golf we negotiated until we got the 16,500 for the Opel. One garage offered us 14k for the  Opel so we turned and walked away, we would have lost 2.5k in that case.

 

Once you  know how much you need for your car so you're not losing out then you won't lose your initial deposit.

Edited 16 September, 2019 by lway
spelling :)

[Octaviarse]

As with any car, you will 'lose' money whichever financing route you take  If you want to work out the total cost of ownership over the ownership period, you need to factor in the interest charges as well as the other costs mentioned.