Thinking of buying a car on PCP (a few questions)
Discussion
rich12 said:
Sorry the 'end' figure i ment being the purchase price, minus deposit and minus the £9k i have paid through installments.
The interest figure is £542.53.
The interest figure is £542.53.
the purchase price will be £13,539.40 - ie the MGFV. If you don't want to buy it for that, you walk away with nothing to show.
rich12 said:
I have only got what i wrote down from what they told me on the interest figures etc but have the contract and all other figures from them printed out.
Yes, sorry i worded that wrong. i didn't mean to purchase the car it would be that figure.
Assuming the amounts you wrote in your post are correct, you're: Yes, sorry i worded that wrong. i didn't mean to purchase the car it would be that figure.
Borrowing: £18,806.87.
GFV: £13,539.40
so the amount of capital that you're paying off is the difference, ie £5267.47
Your monthly payment total is: 36 x £250 = £9000
The difference betwen the two above, £3732.53, is the interest charge. I can't imagine what the £543 interest figure you gave refers to.
On the figures you've given, the 3.65% must be the flat rate. £250/mth payments fits almost exactly with a 7.6% APR.
So almost £12k to borrow an A3 for 3 years, presumably on a limited mileage.
For the same money you could have a low mileage and not too old Golf GT TDI, Focus, A3 Sportback, Astra, 1 Series, 3 Series, Cashcow, and a whole load of other cars.
I can understand why someone may want a new car, but if you have £6k at hand and can afford £250 a month payments surely aiming to own your next car at the end of a term is a better way to go.
For the same money you could have a low mileage and not too old Golf GT TDI, Focus, A3 Sportback, Astra, 1 Series, 3 Series, Cashcow, and a whole load of other cars.
I can understand why someone may want a new car, but if you have £6k at hand and can afford £250 a month payments surely aiming to own your next car at the end of a term is a better way to go.
rich12 said:
RIGHT.....
Been to a few dealers and the one we are both happy with is suprisingly Audi.
We were looking at a Audi A3 2.0TDI Sportback Black edition.
We agreed this;
Car OTR price £24,450
I will put in £2,643.13 as a deposit
They will put in £3,000 to the deposit
Having a £5,643.13 deposit.
3.65% APR fixed for the term (3 years)
MGFV of £13,539.40
£250 per month.
I work it out as the balance being £18,806.87 paying off £9k over those 3 years leaving a figure of £9856.87.
So there is about £1k difference between the GFV and the end figure (taking away the £3k contribution from Audi)
Abit of advice would be great to how this deal sounds.
Thanks.
new shape A3? if so not too bad, suppose it's an ok deal. check the mileage and excess mileage charges. if its 10k pa then leasing could be betterBeen to a few dealers and the one we are both happy with is suprisingly Audi.
We were looking at a Audi A3 2.0TDI Sportback Black edition.
We agreed this;
Car OTR price £24,450
I will put in £2,643.13 as a deposit
They will put in £3,000 to the deposit
Having a £5,643.13 deposit.
3.65% APR fixed for the term (3 years)
MGFV of £13,539.40
£250 per month.
I work it out as the balance being £18,806.87 paying off £9k over those 3 years leaving a figure of £9856.87.
So there is about £1k difference between the GFV and the end figure (taking away the £3k contribution from Audi)
Abit of advice would be great to how this deal sounds.
Thanks.
i think they do the normal a3 on about £750 deposit and £240 per month but you hand it back at end.
question you need to ask is do you think the car will be worth more than the GFV at the end so you have some equity, i'd have thought if it's the new one you may have a tiny bit of equity, if its the current model then you won't
also if its the current/old shape then i'd avoid as it's an old car now with an old dashboard and old everything really
Chrisw666 said:
So almost £12k to borrow an A3 for 3 years, presumably on a limited mileage.
For the same money you could have a low mileage and not too old Golf GT TDI, Focus, A3 Sportback, Astra, 1 Series, 3 Series, Cashcow, and a whole load of other cars.
I can understand why someone may want a new car, but if you have £6k at hand and can afford £250 a month payments surely aiming to own your next car at the end of a term is a better way to go.
yes, he'd still have to pay finance charges on the old carFor the same money you could have a low mileage and not too old Golf GT TDI, Focus, A3 Sportback, Astra, 1 Series, 3 Series, Cashcow, and a whole load of other cars.
I can understand why someone may want a new car, but if you have £6k at hand and can afford £250 a month payments surely aiming to own your next car at the end of a term is a better way to go.
also, what if the 3 series he buys a few years old has a swirl flap problem, of if the turbo goes and costs £1700 to repair or if the engine goes or if it needs a new exhaust for the mot or if it fails the mot for many other reasons. also the second hand car may be half way through its tyres so costing more there.
you'd then have to hpi the car, check you've not bought a 'dud' and pay selling fees when you advertise it and deal with tyre kickers when selling
i personally think new cars make more sense, perhaps not if you are looking at it purely from a monetary point of view but for ease etc and having a new car that no one else has had sex in etc then a new car is better and they don't work out much dearer.
would i rather have a brand new shape a3 that you know has not been in an accident and that has 3 years warranty, roadside assistance and doesn't need an mot or would I rather have a 4 year old, third hand golf gt tdi whose turbo could blow at any moment and that has a nearly bald front tyre even if I could save a few grand over 3 years?
i'd go for the new car personally.
life is too short and if you know someone that has been ill or died or something and they are in their twenties or thirties then you think sod it, so what if it costs a bit more, you aren't here forever.
jonah35 said:
yes, he'd still have to pay finance charges on the old car
also, what if the 3 series he buys a few years old has a swirl flap problem, of if the turbo goes and costs £1700 to repair or if the engine goes or if it needs a new exhaust for the mot or if it fails the mot for many other reasons. also the second hand car may be half way through its tyres so costing more there.
you'd then have to hpi the car, check you've not bought a 'dud' and pay selling fees when you advertise it and deal with tyre kickers when selling
i personally think new cars make more sense, perhaps not if you are looking at it purely from a monetary point of view but for ease etc and having a new car that no one else has had sex in etc then a new car is better and they don't work out much dearer.
would i rather have a brand new shape a3 that you know has not been in an accident and that has 3 years warranty, roadside assistance and doesn't need an mot or would I rather have a 4 year old, third hand golf gt tdi whose turbo could blow at any moment and that has a nearly bald front tyre even if I could save a few grand over 3 years?
i'd go for the new car personally.
life is too short and if you know someone that has been ill or died or something and they are in their twenties or thirties then you think sod it, so what if it costs a bit more, you aren't here forever.
And this is the exact reason why we would rather a new car. As i said in my first post, i am sick of worrying about the car breaking down whilst my misses is driving and that it could cost hundreds to fix.also, what if the 3 series he buys a few years old has a swirl flap problem, of if the turbo goes and costs £1700 to repair or if the engine goes or if it needs a new exhaust for the mot or if it fails the mot for many other reasons. also the second hand car may be half way through its tyres so costing more there.
you'd then have to hpi the car, check you've not bought a 'dud' and pay selling fees when you advertise it and deal with tyre kickers when selling
i personally think new cars make more sense, perhaps not if you are looking at it purely from a monetary point of view but for ease etc and having a new car that no one else has had sex in etc then a new car is better and they don't work out much dearer.
would i rather have a brand new shape a3 that you know has not been in an accident and that has 3 years warranty, roadside assistance and doesn't need an mot or would I rather have a 4 year old, third hand golf gt tdi whose turbo could blow at any moment and that has a nearly bald front tyre even if I could save a few grand over 3 years?
i'd go for the new car personally.
life is too short and if you know someone that has been ill or died or something and they are in their twenties or thirties then you think sod it, so what if it costs a bit more, you aren't here forever.
Worst case scenario is i have 'rented' a brand new car for 3 years which costs me £4k per year which really isnt that bad.
If i wanted to buy a 4 year old equilivent i would have no warranty which is one of the reasons for getting rid of the R26.
rich12 said:
And this is the exact reason why we would rather a new car. As i said in my first post, i am sick of worrying about the car breaking down whilst my misses is driving and that it could cost hundreds to fix.
Worst case scenario is i have 'rented' a brand new car for 3 years which costs me £4k per year which really isnt that bad.
If i wanted to buy a 4 year old equilivent i would have no warranty which is one of the reasons for getting rid of the R26.
exactly, there is no right or wrong answer but i completely see your pointWorst case scenario is i have 'rented' a brand new car for 3 years which costs me £4k per year which really isnt that bad.
If i wanted to buy a 4 year old equilivent i would have no warranty which is one of the reasons for getting rid of the R26.
taking a car for an mot once a year is a hassle and all the other stuff, if you are self employed etc and break down that's also another hassle.
make sure its the new new a3 though, the one that's about to come out
PCP is a good way of finacing a car, but ive been looking and some leases are dirt cheap and only 2 years, and then you just hand it back and get something new, no faffing with GFV, or if you can get a bank loan at lower intrest, if your job went tits up, you can flog the car, pay off the loan and be no worse off, where as PCP your stuck in
PCP is a good way of finacing a car, but ive been looking and some leases are dirt cheap and only 2 years, and then you just hand it back and get something new, no faffing with GFV, or if you can get a bank loan at lower intrest, if your job went tits up, you can flog the car, pay off the loan and be no worse off, where as PCP your stuck in
okie592 said:
PCP is a good way of finacing a car, but ive been looking and some leases are dirt cheap and only 2 years, and then you just hand it back and get something new, no faffing with GFV, or if you can get a bank loan at lower intrest, if your job went tits up, you can flog the car, pay off the loan and be no worse off, where as PCP your stuck in
Nonsense.PCP as said a few times in this thread is just HP with a deferred lump sum or balloon payment, or option to hand back.
I've had 3 of them in recent years and have never reached the end of the 3yr term, part-exing or selling before then to get my equity out.
There is no 'faffing' to be had with the GFV, and lease/contract hire cars are just as likely to be scrutinised when handing back at the end of the term.
Edited by yellowbentines on Saturday 7th July 20:27
yellowbentines said:
Nonsense.
PCP as said a few times in this thread is just HP with a deferred lump sum or balloon payment, or option to hand back.
I've had 3 of them in recent years and have never reached the end of the 3yr term, part-exing or selling before then to get my equity out.
There is no 'faffing' to be had with the GFV, and lease/contract hire cars are just as likely to be scrutinised when handing back at the end of the term.
It can be expensive to get out of them before the end of the term. I forget the exact way it's worked out now, but if you look at the deal the OP is talking about, the GFV is half the car's list price. With HP you can hand the car back once you've paid half the amount owing and walk away. If the hand back point for a PCP is half the amount borrowed, the OP will never reach that during the term as the GFV is relatively large.PCP as said a few times in this thread is just HP with a deferred lump sum or balloon payment, or option to hand back.
I've had 3 of them in recent years and have never reached the end of the 3yr term, part-exing or selling before then to get my equity out.
There is no 'faffing' to be had with the GFV, and lease/contract hire cars are just as likely to be scrutinised when handing back at the end of the term.
The other potential snag is the GFV is only guaranteed at the end - with a distress sale before the end they could quite feasibly offer less.
Lease can be even worse - you should assume you'll have to pay all the outstanding payments.
Deva Link said:
It can be expensive to get out of them before the end of the term. I forget the exact way it's worked out now, but if you look at the deal the OP is talking about, the GFV is half the car's list price. With HP you can hand the car back once you've paid half the amount owing and walk away. If the hand back point for a PCP is half the amount borrowed, the OP will never reach that during the term as the GFV is relatively large.
The other potential snag is the GFV is only guaranteed at the end - with a distress sale before the end they could quite feasibly offer less.
Lease can be even worse - you should assume you'll have to pay all the outstanding payments.
We pcp our cars, but as we do high mileages the gfv ends up pretty low, so on a 4 year pcp at about 3 years in you are over the 50% point.The other potential snag is the GFV is only guaranteed at the end - with a distress sale before the end they could quite feasibly offer less.
Lease can be even worse - you should assume you'll have to pay all the outstanding payments.
A common misconception is that when you hand back you get crippled with charges for damage, we have handed 4 bmws back now and not a penny charged for damages, we had looked after the cars though so no kerbed wheels etc.
jonah35 said:
Mercedes slk 250 cdi amg sport autos are 299 per month inc vat on lease. Theyre a forty grand car, 0-60 in 6.7, paddleshift 7 speed auto, leather, 56 mpg. 369 lb ft torque.
I think thats a steal, maybe a black one with red leather!
Funnily enough there's a brand spanking new one of those (mines an AMG sport pack one) sat in my garage right now - got back to it yesterday. It goes like the clappers. Love it. I think thats a steal, maybe a black one with red leather!
I cannot for the life of me fathom why I would buy a new one or a used ten grand one when for that kind of money (which appears to be about equal to the depreciation) I can lease a brand spanking new one, give it back and have no worries about stuff going wrong. It's a total no brainer to me.
northandy said:
We pcp our cars, but as we do high mileages the gfv ends up pretty low, so on a 4 year pcp at about 3 years in you are over the 50% point.
A common misconception is that when you hand back you get crippled with charges for damage, we have handed 4 bmws back now and not a penny charged for damages, we had looked after the cars though so no kerbed wheels etc.
When you say "hand back" do you mean at the end of 4 yrs, or are you handing back early?A common misconception is that when you hand back you get crippled with charges for damage, we have handed 4 bmws back now and not a penny charged for damages, we had looked after the cars though so no kerbed wheels etc.
I can't say I've heard complaints about BMW but I've never owned one. As I mentioned previously, VW and Mercedes are legendary for trumped up charges.
Legally, if you hand back early there should be no additional charges as long as the car is in reasonable condition. The advantage there is that "reasonable" is a lot less stringent that VW and Mercedes expect. You should also get away with excess mileage charges.
Deva Link said:
It can be expensive to get out of them before the end of the term. I forget the exact way it's worked out now, but if you look at the deal the OP is talking about, the GFV is half the car's list price. With HP you can hand the car back once you've paid half the amount owing and walk away. If the hand back point for a PCP is half the amount borrowed, the OP will never reach that during the term as the GFV is relatively large.
The other potential snag is the GFV is only guaranteed at the end - with a distress sale before the end they could quite feasibly offer less.
Lease can be even worse - you should assume you'll have to pay all the outstanding payments.
That's a bit of a strange argument and it doesn't really stack up. Hypothetically If the GFV was exactly 50% of the total amount payable then you would just pay the remainding payments and then hand it back (assuming the car was worth less). You'd of then paid the same than if it was on HP. If it was 60% you could get out of it by paying less than you would on normal HPThe other potential snag is the GFV is only guaranteed at the end - with a distress sale before the end they could quite feasibly offer less.
Lease can be even worse - you should assume you'll have to pay all the outstanding payments.
In any case the main purpose of that is for if you're in financial difficulty. Do that a couple of times and you might find it difficult to get HP, particularly in these days of consolidated banking.
In reality if you wanted out you'd probably just try and sell it as you would any other car. Just ask the purchaser to pay the finance portion on debit card direct to bank simpler and more secure in many ways for both parties.
I don't get why people struggle so much with PCP's or think they're some big con.
On new cars it's the same as HP just with two advantages, usually lower APR's and the benefit of a GFV. The only downside vs an unsecured loan is if you wanted to buy the car for keeps and haven't got the cash for the GFV then interest rates may have gone up a couple of years down the line.
Edited by waterwonder on Saturday 7th July 22:06
Edited by waterwonder on Saturday 7th July 22:29
Deva Link said:
When you say "hand back" do you mean at the end of 4 yrs, or are you handing back early?
I can't say I've heard complaints about BMW but I've never owned one. As I mentioned previously, VW and Mercedes are legendary for trumped up charges.
Legally, if you hand back early there should be no additional charges as long as the car is in reasonable condition. The advantage there is that "reasonable" is a lot less stringent that VW and Mercedes expect. You should also get away with excess mileage charges.
Some early, some end of term. The excess mileage thing is something that we have paid though, i did push it once but got nowhere. I can't say I've heard complaints about BMW but I've never owned one. As I mentioned previously, VW and Mercedes are legendary for trumped up charges.
Legally, if you hand back early there should be no additional charges as long as the car is in reasonable condition. The advantage there is that "reasonable" is a lot less stringent that VW and Mercedes expect. You should also get away with excess mileage charges.
I had heard mercedes were particularily picky.
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