Ordered mine in september 2021, just got info from the dealer; he suggests buying thule cargo box if i needed more space on my current car while waiting for kodiaq…

3 minutes ago, kodiaqsportline said:

 

When you order a new car, it's not on the road ( it's OTF - on a form  ). VED may have changed, there maybe a different way altogether of charging tax - tax is something completely out of the manufacturer's control. Incidentally, the luxury tax is based on the retail price, not the OTR price.

 

Personally I think VED should work like income tax. You pay 20% income tax on a salary up to £50270, anything over is charged at 40%.

 

So, everyone pay's £155 VED on cars up to £40k and then percentage of the list price over £40k.  That way someone driving a £100k car pays more than someone driving a £41k car. Seems perfectly fair to me.

Yeah I get that. It’s not manufacturers. And as you say VED can change anyway. But the price you pay should be what is reflected somehow rather than a long build process leading to inadvertently tripping over the threshold due to price rises.

 

As for your suggestion it’s a very good one. A perfect one in fact. Far too sensible for the current mob in charge but there we go…

22 hours ago, Jakka said:

Ordered mine in september 2021, just got info from the dealer; he suggests buying thule cargo box if i needed more space on my current car while waiting for kodiaq…

Why didnt I think of that? Cancel the Kodiaq, just get a Fabia and roof box!! Did you punch him?

22 hours ago, Jakka said:

Ordered mine in september 2021, just got info from the dealer; he suggests buying thule cargo box if i needed more space on my current car while waiting for kodiaq…

 

The kids will probably complain but I won't be able to hear them from out there anyway... Maybe he's onto something!

 

Maybe suggest he buys the cargo box and shoves it somewhere?

Edited 15 April, 20224 yr by AntD

Needed to do some mediatation in my mind in order to control myself, before asking if he suggest shoving my newborn and stroller in there…of course i was kind enough to remind him i do not expect an answer from him on this topic…anyway promised delivery is way due and i just got unconfirmed production date beginning of july…

Had a nice update from my dealer this week saying we have a build week of 25 on the new bear, potentially sooner (my sister in law ordered hers a week before me and already has hers! No idea how that happened and nor does the dealer). Expected delivery mid August, happy with that as only ordered it at the start of March and still have my edition spec Kodiaq which is only 2 1/2 years old.

 

that’s on an L&K with tow bar 2.0 diesel 200bhp, only upgrading early due to the insane used car values. Quite a bit better off a month for a higher spec car, how does that even happen??

6 hours ago, PMackley13 said:

…. that’s on an L&K with tow bar 2.0 diesel 200bhp, only upgrading early due to the insane used car values. Quite a bit better off a month for a higher spec car, how does that even happen??

It happens because you have rolled the equity from the old one into no (or less) equity in the new one.    Let’s say (using round numbers) you owed £15k for existing car, but secondhand value was £25k.  They have basically taken that difference and put it as hefty payment contribution into the new one.

 

So basically you had choice of taking a nice big cash lump sum (the profit on sale of old car), or receiving no cash, but slightly lower monthly payments for few extra years.

 

You might have lower payments per month, but I bet the amount you owe (total of remaining payments due) has gone up, and what’s more you will be older by the time you finally finish paying for it.  But if you want to be able to save less for your pension but replacing car early that is your choice.

 

In most cases, with used values high, it is better to pay balloon payment on a PCP, even if you then sell the car soon after and repay any loan you took out.

The basic test is if it is worth more (which you can check on a site like motorway) than you owe, (the remaining payments including balloon option to buy) better to buy it outright.   You are then free to sell it at date of your choice, be it few weeks later or few years later

 

Edited 16 April, 20224 yr by SurreyJohn

20 minutes ago, SurreyJohn said:

It happens because you have rolled the equity from the old one into no (or less) equity in the new one.    Let’s say (using round numbers) you owed £15k for existing car, but secondhand value was £25k.  They have basically taken that difference and put it as hefty payment contribution into the new one.

 

So basically you had choice of taking a nice big cash lump sum (the profit on sale of old car), or receiving no cash, but slightly lower monthly payments for few extra years.

 

You might have lower payments per month, but I bet the amount you owe (total of remaining payments due) has gone up, and what’s more you will be older by the time you finally finish paying for it.  But if you want to be able to save less for your pension but replacing car early that is your choice.

 

In most cases, with used values high, it is better to pay balloon payment on a PCP, even if you then sell the car soon after and repay any loan you took out.

The basic test is if it is worth more (which you can check on a site like motorway) than you owe, (the remaining payments including balloon option to buy) better to buy it outright.   You are then free to sell it at date of your choice, be it few weeks later or few years later

 

Why is it better to buy outright? It would depend on your situation. If you want a new car then it makes sense to roll the equity in and save your monthly costs. You have that equity in the new car. Are you potentially going to ‘lost it’ at the end - yep. But what it’s doing is giving you a better car for less money. If you view PCP as an asset then it’s not a good idea. If you view it as a lease with options then the benefit is positive equity lets you roll on. You get the equity back in reduced payments or a better car for the next three or four years. But of course it will potentially go the opposite way next time but that’s the PCP game.

 

Whether you clear the finance and keep the car or buy new the net gain for you is the same unless you now don’t need a car and want to realise the cash value….

4 hours ago, iwb100 said:

Why is it better to buy outright? It would depend on your situation. If you want a new car then it makes sense to roll the equity in and save your monthly costs. You have that equity in the new car. Are you potentially going to ‘lost it’ at the end - yep. But what it’s doing is giving you a better car for less money. If you view PCP as an asset then it’s not a good idea. If you view it as a lease with options then the benefit is positive equity lets you roll on. You get the equity back in reduced payments or a better car for the next three or four years. But of course it will potentially go the opposite way next time but that’s the PCP game.

 

Whether you clear the finance and keep the car or buy new the net gain for you is the same unless you now don’t need a car and want to realise the cash value….

I'm in your camp.

My 4 yr 3month old, 50k miles Kodiaq had a balloon payment of about £15k due  When I signed the deal in November they gave me around £11k of equity to put against the new car and a PCP discount and dealer 'deal' on the new car which zeroes the mileage and gave me a new car to drive around in. In the mean time the car has dropped slightly in value. I don't see a downside and I'm picking up the new one Friday! 

27 minutes ago, apshep said:

I'm in your camp.

My 4 yr 3month old, 50k miles Kodiaq had a balloon payment of about £15k due  When I signed the deal in November they gave me around £11k of equity to put against the new car and a PCP discount and dealer 'deal' on the new car which zeroes the mileage and gave me a new car to drive around in. In the mean time the car has dropped slightly in value. I don't see a downside and I'm picking up the new one Friday! 

Yeah I mean I get you can pay the balloon and sell and then pocket the cash. But then what…you still need a car.

 

Ive never put a single penny of my own money down on a pcp deposit. Always rolled equity or had a fully owned second hand car that I used to part exchange. And I treat it like a lease. And the end any equity is a bonus to reduce the next deal.

 

Because of the situation I can go from my Karoq into a new sportline kodiaq for a lower monthly payment. Can’t complain with that. 

6 hours ago, SurreyJohn said:

You might have lower payments per month, but I bet the amount you owe (total of remaining payments due) has gone up, and what’s more you will be older by the time you finally finish paying for it.  But if you want to be able to save less for your pension but replacing car early that is your choice.

 

I don't follow your logic there... @PMackley13 said they were going to be paying less each month on the car - surely that means they have more to pay into their pension each month if they want to? 😜

17 hours ago, SurreyJohn said:

It happens because you have rolled the equity from the old one into no (or less) equity in the new one.    Let’s say (using round numbers) you owed £15k for existing car, but secondhand value was £25k.  They have basically taken that difference and put it as hefty payment contribution into the new one.

 

So basically you had choice of taking a nice big cash lump sum (the profit on sale of old car), or receiving no cash, but slightly lower monthly payments for few extra years.

 

You might have lower payments per month, but I bet the amount you owe (total of remaining payments due) has gone up, and what’s more you will be older by the time you finally finish paying for it.  But if you want to be able to save less for your pension but replacing car early that is your choice.

 

In most cases, with used values high, it is better to pay balloon payment on a PCP, even if you then sell the car soon after and repay any loan you took out.

The basic test is if it is worth more (which you can check on a site like motorway) than you owe, (the remaining payments including balloon option to buy) better to buy it outright.   You are then free to sell it at date of your choice, be it few weeks later or few years later

 

I understand that, my comment was that it’s nuts about the used car prices. I could probably get more selling it privately before handover and I may well do that but there is no benefit to me in making the final payment. I change my cars at least every four years, sooner if the numbers add up. Ideally I want to be in warranty and without MOTs as much as possible. This is the whole reason I do PCP.

 

As regards the amount I owe, It obviously goes up as I’ve gone for a better spec but it is around 7k less than I owed when getting the edition. I always treat PCP as a glorified lease in truth. I need a reliable car for work and my hobby so I’m a long way off trying to penny pinch luckily. I also think that given the fact that ICE is being phased out and new ones will become scarce in the future the future value will remain strong, and if not I have the guaranteed future vale to fall back on. IF the L&K being that awesome and the numbers add up I would consider keeping it after the deal ends if electric doesn’t work for me.

On 16/04/2022 at 15:06, iwb100 said:

Why is it better to buy outright? It would depend on your situation.

 

I couldn't agree more. Without knowing someone's personal circumstances it's nonsesne for another party to tell them what is and what isn't best.

 

On 16/04/2022 at 14:42, SurreyJohn said:

You might have lower payments per month, but I bet the amount you owe (total of remaining payments due) has gone up, and what’s more you will be older by the time you finally finish paying for it.  But if you want to be able to save less for your pension but replacing car early that is your choice.

 

In most cases, with used values high, it is better to pay balloon payment on a PCP, even if you then sell the car soon after and repay any loan you took out.

 

How can one payment method be better than the next when we all have diffenent finances and commitmemts? And what has the amount you owe got to do with PCP.  If your concern is the ballon payment then perhaps PCP isn't the best way to finance a car purchase.

 

The majority of those who use PCP do so because they can't afford the car ( they can afford the finance, not the car. How many people have actually bought the car they financed, I don't know a single person who has ). So all this talk about paying off ballon payments, it's just not an option open to many people. With PCP or leasing you know exactly what the future holds, which given the current volitle market, is a massive advantage. As a cash buyer I can only take an educated guess.

 

When someone says they're reducing their monthly payment by buying a new car, then that's great for them - IMHO they'd be crazy not to accept, But there's no getting around it, the only reason it appears a good deal is because their previous deal was shockingly bad. Let me explain:

 

I prefer to use cash ( in truth buy on PCP then settle the amount a few days later). In Nov '20 my car listed at £39k. Using all the discounts available, I ended up paying £31K. When my car was 12mth old, they offered me £34k - that's £3K more than I paid for it. The only way that works out good to me is if I wasn't going to buy another car. ( I'd have 3k in my pocket but the replacement car would cost me near £40k. )

 

I'm not sure what the PCP figure would have been over that 12mths but I'm guessing about £600 a month. So over 12mths on PCP the car would have cost me £6600 + deposit against the garage giving me £3000. Hmm I wonder what option I'd take?

 

So when someone thinks they're getting a great deal on a new PCP, they haven't taken in to account they already overpaid by a huge sum on the previous agreement. But because they see it as a monthly outgoing that they were happy to pay a few years ago, they don't see it like that.  I often read about people thinking they're getting great deals because used prices have risen but the truth is they've been screwed on their previous deal. It the salespersons job to make folk think they're getting a great deal but the truth is, it's the dealer who always comes out smelling of roses. I think I read the other day that despite all the problems right now, VW Financal Sevices is having their most profitable time ever.    

 

I go back to my originally point, everyone is different and no form of finance is best for everyone. What seems crap to me maybe great for someone else. If someone is happy with the deal they've obtained then surely that's all that matters?

 

 

8 minutes ago, kodiaqsportline said:

So when someone thinks they're getting a great deal on a new PCP, they haven't taken in to account they already overpaid by a huge sum on the previous agreement.

 

You what now?

 

I wasn't screwed on my previous deal. I got a massive discount and a low APR. It was a good deal for buying a car, and I certainly wasn't overpaying on it. The deal I got on my new car was actually about the same... roughly the same %age discount from the dealer and roughly the same APR. The difference (and what made it an awesome deal for me) was the extra deposit I could put into the deal because of the equity I had in the old car, thanks to used prices soaring.

 

Yes, I could probably have leased the car for less than I was paying on a PCP - but then I wouldn't have had the equity and the option to take advantage of that before the end of the deal. As you say, what finance is best for one person isn't the same as for another - which is why it surprised me that you then decided everyone was massively screwed on their last PCP deal...

 

13 minutes ago, kodiaqsportline said:

I think I read the other day that despite all the problems right now, VW Financal Sevices is having their most profitable time ever.

 

Of course they are - because a lot of people are trading in their cars and taking out new deals. It's the dealer that has to cover the excess equity in the car, not VWFS. The dealer then hopes to make that back (and more) when they re-sell the car, but that's nothing to do with VWFS... unless the new buyer finances it through them, in which case they are laughing all the way to the bank because the new buyer will probably owe more on the same car as the original buyer did when they traded it in and paid off the finance.

With PCP the variables are:

 

Price of the car (or discount you can get off list price)

APR

Guaranteed future value

Part Exchange Value (if part exing)

 

The only two variables that a dealer can work with are any discount they offer which eats into their commission and the part ex valuation which they have little room on beyond market price.

 

The GFV and APR are set by the manufacturer and finance company (the days of the big German dealers bumping residuals up to silly amounts to hit targets are long gone). 
 

So in reality they only two things that matter are the price of the car and the APR. In terms of the quality of a PCP deal. Right now neither price or APR are good. So there are no good PCP deals. The reason people can get much lower monthly payments now is purely because the second hand market is so insanely high that people have way more equity to roll into a new deal than normal. 
 

In my PCP history I started off with a Toyota Yaris went to a golf then a Karoq Edition 4x4 and now (eventually) a Sportline Kodiaq. Since the golf I have considerably reduced my payments each time. This is due to a deal on the Karoq I got. The Kodiaq is lower purely because I had so much equity in the Karoq to roll in.

 

My wife had a T Roc and that was valued by seat at basically the price we bought it for over 2 years ago. Absolutely insane. So the new arona is costing very little. 
 

Neither car was on a 0% deal or competitively priced and the discounts were just the usual ones I guess (though seat were very generous with their discounting) but the market is such that you can just lower payments with your equity.

 

Next time round in braced for very high monthly’s as we will no doubt not have the equity and I guess will be looking for something that plugs in….

I’ve been told Skoda have removed acoustic glass from all kodiaq orders due to shortages. No option to wait. 
 

Given the prices now it’s starting to look a more appealing to just buy a better car. A GLB AMG is about the same cost as a decent spec VRS now. Q5 265hp quattro or Mercedes GLC also if you don’t need 7 seats. 

18 minutes ago, Rodders45 said:

I’ve been told Skoda have removed acoustic glass from all kodiaq orders due to shortages. No option to wait. 
 

Given the prices now it’s starting to look a more appealing to just buy a better car. A GLB AMG is about the same cost as a decent spec VRS now. Q5 265hp quattro or Mercedes GLC also if you don’t need 7 seats. 

Is that if you ordered the sleep package? Heard the same but I don’t have it on my order. 
 

Still wouldn’t buy a GLB like…but I do think they are vaguely ridiculous. Jamming a 7 seater into a small car platform is a bit silly.

Edited 18 April, 20224 yr by iwb100

3 minutes ago, iwb100 said:

Is that if you ordered the sleep package? Heard the same but I don’t have it on my order. 

Yes, sleep pack contained it. 

I am so pleased we have cleared up the PCP / cash / finance / equity and pensions debacle. Can we get back to whinging about late deliveries please 🤣

1 hour ago, iwb100 said:

So there are no good PCP deals.

 

There were when I ordered mine last July... 😁

 

I'm actually paying /more/ on my PCP deal for the vRS than I was for the Edition - but that's because of the price differential, even after discount / massive amount of equity is taken into account. But the deal I got was a good deal, nonetheless.

 

14 minutes ago, Spivo said:

I am so pleased we have cleared up the PCP / cash / finance / equity and pensions debacle. Can we get back to whinging about late deliveries please 🤣

 

No, that got boring ages ago 😉.

Edited 18 April, 20224 yr by Yogi-Bear

52 minutes ago, Yogi-Bear said:

 

There were when I ordered mine last July... 😁

 

I'm actually paying /more/ on my PCP deal for the vRS than I was for the Edition - but that's because of the price differential, even after discount / massive amount of equity is taken into account. But the deal I got was a good deal, nonetheless.

 

I just mean that the PCP deals themselves are rarely inherently good or bad. Obviously lower APR is better. But the difference maker is price of your exchange and price of the new one. Those are where the best value lies. And that’s the same whether buying with cash or via PCP.

3 hours ago, Rodders45 said:

I’ve been told Skoda have removed acoustic glass from all kodiaq orders due to shortages. No option to wait. 
 

Given the prices now it’s starting to look a more appealing to just buy a better car. A GLB AMG is about the same cost as a decent spec VRS now. Q5 265hp quattro or Mercedes GLC also if you don’t need 7 seats. 

The Mercedes’ and Audi are a different league, if you can find one at a similar price go for it

2 hours ago, iwb100 said:

But the difference maker is price of your exchange and price of the new one.

Indeed. And I was fortunate enough to get a really good price and a really good p/x value too… and then a better p/x value again by the time it actually turned up, although I split the difference between the original p/x and the market value with the dealer, as he rightly pointed out that he wouldn’t be giving me the same discount if I was ordering at that point. If I had applied that extra p/x value to the PCP deal then the monthly payments would have ended up more or less the same than on the previous Kodiaq, but I took it as ‘cashback’ instead.

35 minutes ago, Spivo said:

The Mercedes’ and Audi are a different league, if you can find one at a similar price go for it

In this case specifically I disagree. The GLB is not a better car than the Kodiaq. Not in any way other than interior finish quality. Obviously it is better in that regard. But it’s smaller. Has a significantly smaller boot and much less storage space in the cabin. To my eyes it looks silly like a stretched hatch which is more or less what it is.

 

If you need a 7 seater then I would not go GLB. If you want a merc badge there are much better options. 

4 hours ago, Spivo said:

The Mercedes’ and Audi are a different league, if you can find one at a similar price go for it

Coming from a Mercedes the skoda has better build quality. Might not look as flash but the interior quality is poor. Leather poor mine ripped just looking at it Jean buttons ripped it and the other interior parts are soft and easily damaged. And I'm not talking about an old merc a 2019 one. So your right different league a lower one. Paying for a badge