The PCP deals and Q&A thread

The PCP deals and Q&A thread

Author
Discussion

Splats

625 posts

161 months

Tuesday 28th June 2016
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I assume you mean the Focus RS. If so, then the GFMV is (3-year deal) £16,800 and APR from Ford is 5.8% - you can use the car configurator to build your car and get a price then www.pcppal.co.uk to calculate the payments. As a side note, on this particular model the final value in 3 years is likley to be much higher than the GFMV. £20k is a pretty much a given and it could easily be worth £23-26k.

Stu-nph26

1,984 posts

104 months

Tuesday 28th June 2016
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Splats said:
I assume you mean the Focus RS. If so, then the GFMV is (3-year deal) £16,800 and APR from Ford is 5.8% - you can use the car configurator to build your car and get a price then www.pcppal.co.uk to calculate the payments. As a side note, on this particular model the final value in 3 years is likley to be much higher than the GFMV. £20k is a pretty much a given and it could easily be worth £23-26k.
I do indeed did you go for one? My Scirroco R goes back in 14 month so could wait for the RS but got a bit taken by the 5.0 Mustang.

Splats

625 posts

161 months

Tuesday 28th June 2016
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Yeah, I ordered in October 2015 and expect it for 1st September 2016. Pretty long wait!

Stu-nph26

1,984 posts

104 months

Wednesday 29th June 2016
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Splats said:
Yeah, I ordered in October 2015 and expect it for 1st September 2016. Pretty long wait!
would you mind sharing the figures and car info?

Splats

625 posts

161 months

Wednesday 29th June 2016
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Stu-nph26 said:
would you mind sharing the figures and car info?
The finance hasn't been finalised yet as we can run it until we are in the quarter during which the car will arrive. I've also changed my spec a few times altering the price. If I recall, I'm up to about £33,200 and with a deposit of £3600 I'm looking at something in the order of £470 pcm. I treat my deposit and £100 of my monthly as "savings" biggrin

Splats

625 posts

161 months

Wednesday 29th June 2016
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Just to add, you can make a risk free bet with a lease on another car. Golf R's seem to amortise at around £300-350 and S3's at the upper end of that scale. With the lease you know that's all you are ever going to pay. In PCP'ing the Focus I'm taking something of a gamble; if values go to hell and I end up trading for near the baloon the amortised cost per month would be about £550. If that happens, I might just use the car to drive into a bridge at 160mph!

Stu-nph26

1,984 posts

104 months

Wednesday 29th June 2016
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Splats said:
Just to add, you can make a risk free bet with a lease on another car. Golf R's seem to amortise at around £300-350 and S3's at the upper end of that scale. With the lease you know that's all you are ever going to pay. In PCP'ing the Focus I'm taking something of a gamble; if values go to hell and I end up trading for near the baloon the amortised cost per month would be about £550. If that happens, I might just use the car to drive into a bridge at 160mph!
Yea my Sirocco R amortised is £250 I'm never going to get close to that. It is a risk but I'd be very confident the RS will be worth a fair bit more than the GFV, that's the only reason I'm looking to get the RS I'm confident it'll hold its value pretty well.

aww999

2,068 posts

260 months

Wednesday 29th June 2016
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Another noob here. What's the advantage of leasing at 5, 6, 7% when I could get a loan for half that rate. Assuming I haggle a good deal when I buy it, and don't get done over when I sell it after 2 years, would I be better off than using PCP or lease?

I think I might have answered my own question - if I got a loan, I'd have to finance the whole value of the car, whereas PCP I would only finance the depreciation. Is that right?

I used a 0% cash transfer thingy on a credit card for my current car, it's costing me £200 in total to finance £10k for three years, repayments are 1% a month so that's also offset by keeping my savings in a 5% account (with the same bank) over the same period. They're paying me to borrow from them!



talksthetorque

10,815 posts

134 months

Wednesday 29th June 2016
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aww999 said:
Another noob here. What's the advantage of leasing at 5, 6, 7% when I could get a loan for half that rate. Assuming I haggle a good deal when I buy it, and don't get done over when I sell it after 2 years, would I be better off than using PCP or lease?

I think I might have answered my own question - if I got a loan, I'd have to finance the whole value of the car, whereas PCP I would only finance the depreciation. Is that right?

I used a 0% cash transfer thingy on a credit card for my current car, it's costing me £200 in total to finance £10k for three years, repayments are 1% a month so that's also offset by keeping my savings in a 5% account (with the same bank) over the same period. They're paying me to borrow from them!
First of all which bank pays 5% on 10k?
I'll have some of that.

You finance the baloon on a PCP too.
Some PCPs are 0% though so it may not matter.

Your credit card cash transfer will have a fee, ususally 1 to 2%. Check your small print or call them

The sales bods generally get commission on a finance package. The manufacturers also support cars done through finance packages.
You've seen the PCP ads, £1500 manufacturer contribution etc.

So they're more incentivised to sell a car with finance than you walking in with your big roll of £20s.

There's nothing to stop you getting the PCP, then paying it off straight away and card tarting the money.

Leasing is again different.
These occasionally get huge manufacturer subsidies, and these stonking lease deals are the last resort to guarantee getting rid of some stock they need to shift.


aww999

2,068 posts

260 months

Thursday 30th June 2016
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Which bank? Combination of TSB, Lloyds, nationwide works out to 4.xx% net interest on that sort of amount. Some buggering about with standing orders required but no great hassle. The £200 was the 2% transfer fee, which "buys" me 3-ish years of zero interest. Repayment is at 1% per month in the hope that I won't save enough to pay off remainder at the end of the three years, and pay them 20% pa interest on whatever's left over for eternity.

You make a good point about deals aimed at customers who use finance. I feel a spreadsheet ccming on, my wife's Focus is on borrowed time.


Sheepshanks

32,530 posts

118 months

Thursday 30th June 2016
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aww999 said:
Which bank? Combination of TSB, Lloyds, nationwide works out to 4.xx% net interest on that sort of amount. Some buggering about with standing orders required but no great hassle. The £200 was the 2% transfer fee, which "buys" me 3-ish years of zero interest. Repayment is at 1% per month in the hope that I won't save enough to pay off remainder at the end of the three years, and pay them 20% pa interest on whatever's left over for eternity.
You say "no great hassle" but if you've got the cash kicking about then it's no hassle at all to take whatever PCP incentives are available then withdraw within 2 weeks and pay it off.

ETA: You'll generally be able to get a better deal if taking a PCP - most dealers will turn themselves inside out to get to sign up to a PCP. Just don't mention that you're thinking of withdrawing.


Edited by Sheepshanks on Thursday 30th June 16:32

Scott-R

96 posts

104 months

Thursday 30th June 2016
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I have a question for anyone knowledgable about the voluntary termination on a PCP.

I currently have a BMW 640d on PCP, £600 p/m for 4 years, 0% interest. Deposit was £5k from me, £7k from dealer, and list price of the car was £63k. I can see from my PCP contract that the amount of credit I have taken out is £50k, and there is a section that says I am eligible to end the agreement early once half the amount has been repaid (which is listed as being £31.5k).

My question is, does this £31.5k settlement that I could pay include the deposit contribution, or is it strictly against the £50k credit I have taken out? i.e. Having had the car for 14 months now, have I actual paid £13k + (14 x £600) towards this figure, or simply the 14 months of repayments?


Butter Face

30,192 posts

159 months

Thursday 30th June 2016
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Any deposit goes towards the 50%.

It's 50% of the total payable under the agreement.

f1ten

2,161 posts

152 months

Wednesday 30th November 2016
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Splats said:
I assume you mean the Focus RS. If so, then the GFMV is (3-year deal) £16,800 and APR from Ford is 5.8% - you can use the car configurator to build your car and get a price then www.pcppal.co.uk to calculate the payments. As a side note, on this particular model the final value in 3 years is likley to be much higher than the GFMV. £20k is a pretty much a given and it could easily be worth £23-26k.
Any one else hog figures for focus rs ?