First time used VW PCPer
Discussion
Long time lurker first time poster - Hey!
I currently drive a 2003 Clio 1.2. My first car and has done superbly for the last 5 years. Unfortunately the car has become more of a burden to keep going. Time to get rid.
I've been looking at getting a used 2015 Polo BlueGT with 15k miles through PCP finance. I'm very new to this so hoping someone could hopefully point out anything I've probably missed.
Not sure how much to trust it but their online calculator shows a APR of 12%. I expect I can haggle this down? VW are also currently offering a "special deal" which includes a major and a minor service, one MOT and 12 months breakdown at 10.9% APR - Is this a rate I can get down?
I'm not really interested in owning the car at the end so will likely swap it out at the end of the contract - Does this mean I can get them to up the final payment as part of the deal? I'll also be purchasing GAP insurance but I imagine getting it through the dealer will massive compared to someone like ALA who have quoted £150 ish. Unless I can somehow get them to throw this in.
I currently drive a 2003 Clio 1.2. My first car and has done superbly for the last 5 years. Unfortunately the car has become more of a burden to keep going. Time to get rid.
I've been looking at getting a used 2015 Polo BlueGT with 15k miles through PCP finance. I'm very new to this so hoping someone could hopefully point out anything I've probably missed.
Not sure how much to trust it but their online calculator shows a APR of 12%. I expect I can haggle this down? VW are also currently offering a "special deal" which includes a major and a minor service, one MOT and 12 months breakdown at 10.9% APR - Is this a rate I can get down?
I'm not really interested in owning the car at the end so will likely swap it out at the end of the contract - Does this mean I can get them to up the final payment as part of the deal? I'll also be purchasing GAP insurance but I imagine getting it through the dealer will massive compared to someone like ALA who have quoted £150 ish. Unless I can somehow get them to throw this in.
I'd investigate the cost of a new one through carwow or drive the deal as it may well work out cheaper due to incentives and a finance rate half of what they put on used cars.
I've never found buying a nearly new VW or Audi to be cheaper than getting the same car brand new through a broker with some discount and I've had a lot over the years.
I've never found buying a nearly new VW or Audi to be cheaper than getting the same car brand new through a broker with some discount and I've had a lot over the years.
AGK said:
I've never found buying a nearly new VW or Audi to be cheaper than getting the same car brand new through a broker with some discount and I've had a lot over the years.
Unfortunately VW currently don't offer the BlueGT new anymore and anything similar just ends up being too much. I'm putting a decent deposit down, relative to the total cost that is. Looking for about £150-£170 pm Begall said:
If you bank with Halifax then they offer Used PCP finance at rates as low as 4ish% - depending on how much of a risk the car/you are seen as.
I had seen that but I don't bank with them and not sure my current car will last the 3 months required before I can use that deal! EDIT: I've just done a check through my own bank who actually do PCP too and they rate they are offering is the same as the VW "special offer" of 10.9 - obviously without the extra perks
Edited by Smaahm on Monday 25th December 20:04
I personally would be looking at a brand new Ibiza with the new 1.5 TSI engine. Interest rate is about 4.9% I think (I've got a Fabia on 2.9% but it's only a 1.2 TSI) and its the newer, better shape and engine. Granted it's not a Polo but it's much bigger inside, more cutting edge in terms of tech and to my eyes better looking inside and out. I could be wrong but I don't believe there'll be much in it in terms of payments between this and the Polo.
Ibiza is a good shout. From a broker the 1.5 FR is only a couple of hundred quid more than the used Polo, PCP at 6.1% and you’ve got a brand new car with warranty etc and it comes on the new platform which the Polo will get.
If it has to be the Polo then get a proper quote on the PCP, find out how much the services will cost you and then do the maths compared to a conventional bank loan (not PCP). With APRs still down around 3% taking out a loan over a longer period to keep the monthlies down could work out cheaper.
Don’t forget you’re always paying interest on the balloon payment at the end of a PCP, so as long as you’ve got the discipline to do it then taking out a personal loan and treating the last couple of years of the loan as the “balloon” on a PCP can make sense.
The downside to that is you lose the ability to just chuck the keys back at the end of the term if you’re in negative equity, but that seems very unlikely on something a few years old and petrol.
If it has to be the Polo then get a proper quote on the PCP, find out how much the services will cost you and then do the maths compared to a conventional bank loan (not PCP). With APRs still down around 3% taking out a loan over a longer period to keep the monthlies down could work out cheaper.
Don’t forget you’re always paying interest on the balloon payment at the end of a PCP, so as long as you’ve got the discipline to do it then taking out a personal loan and treating the last couple of years of the loan as the “balloon” on a PCP can make sense.
The downside to that is you lose the ability to just chuck the keys back at the end of the term if you’re in negative equity, but that seems very unlikely on something a few years old and petrol.
mmcg1 said:
You'd have to be absolutely mad to stick a hefty deposit down and then pay £150 a month to rent a used Polo for 3 years.
You can surely lease a brand new one for around that.
Not that model and 15,000 miles per annum.You can surely lease a brand new one for around that.
OP, if you bank with Lloyds then arrange your own PCP which may be cheaper - see here https://www.lloydsbank.com/car-finance/compare-you...
Momentofmadness said:
OP, if you bank with Lloyds then arrange your own PCP which may be cheaper - see here https://www.lloydsbank.com/car-finance/compare-you...
Was going to suggest looking at the same thing - also available to Halifax and Bank of Scotland customers too (all Lloyds brands).Would also suggest having a play with the carwow pcp calculator - https://www.carwow.co.uk/pcp-calculator . Paying 10.9% APR means you are paying quite a hefty bit of interest over the PCP term, as you are paying interest on the balloon payment as well.
My parents just bought a new car last week and were looking at spending circa £15k on a new or nearly new used car. Dealer had pre-reg ones at £15k(ish) on 10.9% APR - the monthly payment (which the dealer focused on) was £220, the monthly payment for brand new for £224, so of course they pushed the pre-reg option. However, when you looked at the balloon payment, it was £2000 higher at the end of the term on the 'pre-reg' than the new. So worked out much better to get new - they'll either pay less to keep the car, or, possibly have a bit of equity as a deposit for the next one.
Paying 10-11% APR just means you are throwing money away on interest which means I'd rather: a) pick a different (better?) car with a better finance option or b) arrange finance elsewhere (PCP through bank, personal loan etc.) to keep cash in my pocket.
OP, do a bit of homework checking lease deals on Polos (some of them have a SEAT badge). You're looking at the smaller old shape rather than the new one too whereas the new Polo and Ibiza are bigger/better cars.
Take account of opportunity cost, warranty, consumables, tax (which is included in a lease) etc.
The new Polo/Ibiza may or may not represent better value by leasing but always worth checking. WhatCar leasing section and www.contracthireandleasing.com are good tools as well the PH lease thread.
It's often cheaper to go for 8k miles (or whatever) knowing you're going to go over and pay the excess miles.
Take account of opportunity cost, warranty, consumables, tax (which is included in a lease) etc.
The new Polo/Ibiza may or may not represent better value by leasing but always worth checking. WhatCar leasing section and www.contracthireandleasing.com are good tools as well the PH lease thread.
It's often cheaper to go for 8k miles (or whatever) knowing you're going to go over and pay the excess miles.
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