Car Wow understanding the figures - being stupid

[theplayingmantis]

Im very being stupid, but cannot understand how these carwow pcp stack up. how do i get to the total amount payable figure, if i add deposit + ofp + 23 times the monthly figure that leaves it 2,500 short, which is the dealer contribution. But how is that a payable - shouldnt that be a deduction?

what simple thing am i doing wrong?


carwow PCP offer
£781.85 / month
You save
£7,845(9.2%)
Term of agreement
24 months
23 monthly payments of
£781.85
RRP
£85,245.00
carwow price
£79,899.11
Deposit
£29,400.00
Deposit contribution
£2,500.00
Total amount of credit
£47,999.11
Total amount payable
£85,497.55
Cost of credit
£5,598.44
Representative APR
6.9%
Fixed rate of interest pa
6.9%
Optional final payment
£35,615.00
Mileage per annum
5000
Excess mileage charges
17p / mile

[QuattroDave]

23x £781.85 = £17,982.55
Add: deposit = £29,400
Add lump = £35,615
Add dealer contribution = £2,500

Total = £85,497.55

Now you have to tell us what (range rover?) you're buying

[QuattroDave]

The dealer contribution is listed as effectively carwow paying themselves. For whatever reason they're treating it as a model specific contirbution rather than a discount in addition to the original discount (which basically nullifies they interest cost).

[theplayingmantis]

thanks, but I'm not following re. the dealer contribution point still? i have a had a licked lunch which may or may not be impairing my ability...

they include the 2.5k in their headline discount figure and the % saving (indeed theres a hover over popup that says includes 2.5k dealer contibution) but adding it in as a cost in the figures?

[MustangGT]

First off, ignore the RRP list price.

A Purchase price - £79,899.11
B Less deposit and dealer contribution £31,900 (B1 £29,400 + B2 £2,500)
C Leaves financing for £47,999.11
D 23 * £781.85 - £17,982.55
E Optional final payment £35,615

F Finance payments (D+E) = £53,597.55
G Interest therefore D+E-C = £5,598.44

Total cost = B1+D+E = £82,997.55

[66HFM]

Perhaps this calculation helps me in why I've never gone done a PCP, but each to their own...

So for 2 years and a total of 10,000 miles the car (whatever car it is) will cost you:
Deposit of £29,400 + rental of £17,982.55 (23 x £781.85) = £47,382.55
An equivalent cost of £1,974.27 per month
And you in theory walk away with nothing at the end of it...

Please tell us what car it is...

[QuattroDave]

Okay, let's look at it another way.

Your car has been discounted by £5,345 from £85,245 down to 79,899.10.

You are effectively borrowing £80k at 6.9% interest over two years. THe cost of this interest is £5,598.44

The cost of the car is therefore £85,497.55. but as they're jolly nice people who don't want to confuse punters they've agreed to pay £2,500 towards your shiny purchase. The total payable is therefore 82,997.55 as per before.

What you've got is an interest free car with £2.5k knocked off - a 3% discount.

[mcflurry]

66HFM said:

Perhaps this calculation helps me in why I've never gone done a PCP, but each to their own...

So for 2 years and a total of 10,000 miles the car (whatever car it is) will cost you:
Deposit of £29,400 + rental of £17,982.55 (23 x £781.85) = £47,382.55
An equivalent cost of £1,974.27 per month
And you in theory walk away with nothing at the end of it...

Please tell us what car it is...

..if you bought the car outright for £85k and sold it in 2 years time would you get more than £38k back?
(and the £85k borrowed from the bank would have interest too)

[QuattroDave]

mcflurry said:

66HFM said:

Perhaps this calculation helps me in why I've never gone done a PCP, but each to their own...

So for 2 years and a total of 10,000 miles the car (whatever car it is) will cost you:
Deposit of £29,400 + rental of £17,982.55 (23 x £781.85) = £47,382.55
An equivalent cost of £1,974.27 per month
And you in theory walk away with nothing at the end of it...

Please tell us what car it is...

..if you bought the car outright for £85k and sold it in 2 years time would you get more than £38k back?

A question that can only be reliably estimated if he tells us what the bloody car is......

[theplayingmantis]

QuattroDave said:

Okay, let's look at it another way.

Your car has been discounted by £5,345 from £85,245 down to 79,899.10.

You are effectively borrowing £80k at 6.9% interest over two years. THe cost of this interest is £5,598.44

The cost of the car is therefore £85,497.55. but as they're jolly nice people who don't want to confuse punters they've agreed to pay £2,500 towards your shiny purchase. The total payable is therefore 82,997.55 as per before.

What you've got is an interest free car with £2.5k knocked off - a 3% discount.

thanks and others,

so to clarify the total amount payable by me isn't 85,497.55, the 2.5k dealer contribution should be deducted from that, so the total i pay is 82,997.55?

which is overall factoring in finance costs is a 2,247.45 off list (RRP to use carwow's term)

if so why TF doesn't it clearly state that?

[QuattroDave]

theplayingmantis said:

QuattroDave said:

Okay, let's look at it another way.

Your car has been discounted by £5,345 from £85,245 down to 79,899.10.

You are effectively borrowing £80k at 6.9% interest over two years. THe cost of this interest is £5,598.44

The cost of the car is therefore £85,497.55. but as they're jolly nice people who don't want to confuse punters they've agreed to pay £2,500 towards your shiny purchase. The total payable is therefore 82,997.55 as per before.

What you've got is an interest free car with £2.5k knocked off - a 3% discount.

thanks and others,

so to clarify the total amount payable by me isn't 85,497.55, the 2.5k dealer contribution should be deducted from that, so the total i pay is 82,997.55?

which is overall factoring in finance costs is a 2,247.45 off list (RRP to use carwow's term)

if so why TF doesn't it clearly state that?

No problem.

It did..... to me, but I'm a boring accountant :P

Stop being coy and tell us what car!