VW PCP end of terms option

[georgefreeman]

Just a quick question on PCP specifically from VW.

if I were to get a golf r on a 48 month payment and the GFV was £13k what would my payment options be at the end?

I know I have the option to pay a lump sum, or I could re finance this - but does anyone know how long I could re finance it for?

[mike9009]

Presumably you could re-finance for as long as a bank will allow you to. You could secure it against your house for example.

Just check out the figures you will be paying for the car over the total term - so how much will this car 'really' cost you. Financing a car over 8 year is extreme and you 'may' want something else before the time is up......

Mike

[timbo999]

mike9009 said:

Presumably you could re-finance for as long as a bank will allow you to. You could secure it against your house for example.

Just check out the figures you will be paying for the car over the total term - so how much will this car 'really' cost you. Financing a car over 8 year is extreme and you 'may' want something else before the time is up......

Mike

48 months is 4 years not 8... but I agree with your sentiment... OP do add up the total cost (i.e. deposit+payments+balloon payment (or GFV)) so you know how much you're paying for the car. A £13k balloon payment is going to cost you interest wise - especially if you borrow more money to pay it off.

[chr15b]

I think he's eefering to the 48 months pcp plus however long it takes you to pay back the 13k loan you take at the end

[rfoster]

Could be financed on a 5 year hire purchase at the end, if you really wanted to.

[Sheepshanks]

You could get a loan from Sainsbury's etc - £13K over 4yrs would be around £300/mth.

However the "trap" of PCPs is that for most people, they'll look at spunking £300/mth on car that's aging from 4 to 8yrs old, and think "bugger that, I'll get a new one".

[mike9009]

timbo999 said:

mike9009 said:

Presumably you could re-finance for as long as a bank will allow you to. You could secure it against your house for example.

Just check out the figures you will be paying for the car over the total term - so how much will this car 'really' cost you. Financing a car over 8 year is extreme and you 'may' want something else before the time is up......

Mike

48 months is 4 years not 8... but I agree with your sentiment... OP do add up the total cost (i.e. deposit+payments+balloon payment (or GFV)) so you know how much you're paying for the car. A £13k balloon payment is going to cost you interest wise - especially if you borrow more money to pay it off.

Yeah, I know 48 months is 4 years. But the OP was asking about financing the balloon payment of £13k after 4 years PCP. Therefore, the total term and debt repayment of that particular vehicle 'could' be 8 years (which is what I was referring to). This is a long time for repayments on a depreciating asset.

I would suggest the OP is 'stretching' himself to pay for a car, especially over 8 years (potentially). If they could afford it in a shorter term it would be more financially secure and sensible.

[timbo999]

Yeah sorry I was being dozy... its obvious to me now that you knew how long 48 months is!

I do wish finances firms would stop calling the balloon payment the 'GFV' - its money you owe one way or another and has little to do with the value of anything, often least of all the car in question!

[After_Shock]

timbo999 said:

Yeah sorry I was being dozy... its obvious to me now that you knew how long 48 months is!

I do wish finances firms would stop calling the balloon payment the 'GFV' - its money you owe one way or another and has little to do with the value of anything, often least of all the car in question!

Well it is a guaranteed value as the car can be handed back for that and the 'balloon' cleared providing the car has met the mileage and condition requirements, so its not money that you owe if you don't want it to be.

[timbo999]

Well I beg to differ... you do owe it whatever, you either pay it off with cash or your car!

[anonymous-user]

Off topic here:
The golf R will certainly be worth more than £13K in 4 years time. 4 year old Gti's let alone the R models are fetching a lot more on in the used section both here and autotrader!

[After_Shock]

timbo999 said:

Well I beg to differ... you do owe it whatever, you either pay it off with cash or your car!

You do owe it but its being 'guaranteed' to be cleared by the dealer for that amount, take the guarantee out of it and its your problem to sort but as they are 'guaranteeing' it then you have the back up of them and aren't alone in owing it.

So technically you don't owe it, and as you never paid in full for the car the car belongs to the bank not you so its between the bank and the dealer to sort it out if you choose to hand it back.

You only owe it if you wish to actually buy the car. So the term 'Guaranteed' is more than justified.

[timbo999]

After_Shock said:

You do owe it but ...[stuff]... technically you don't owe it

I'll wager you either work in (car) sales or marketing!

[oop north]

timbo999 said:

After_Shock said:

You do owe it but ...[stuff]... technically you don't owe it

I'll wager you either work in (car) sales or marketing!

This amused he, having seen what After_Shock has been posting on another PCP thread in the last few days