Buy existing Scirocco currently on PCP or new deal ????
Discussion
Deva Link said:
The thing no-one else can advise on is how much a shiny new car is worth to you.
I think that hits the nail right on the head actually. A newer car will nearly almost cost you more money but if you're really passionate about cars and want to drive something with the latest tech and comforts then it's maybe worth it. If you're not so bothered then effectively getting a used car is maybe the way to go.I wouldn't want to be caught out by one of the big £,£££ repair jobs that can come up after the warranty period though.
Why not spend 3 months payment on something off this thread?:
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Personally I've always gone down the personal loan route when I used to buy more expensive cars, but that was mainly cos I would change my car way too often or I would have 3 or 4 at a time!
I reckon you can get a much better personal loan rate, just shop around! I told the bank it was for home improvements, as IIRC the rate was higher for car loans!
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
Personally I've always gone down the personal loan route when I used to buy more expensive cars, but that was mainly cos I would change my car way too often or I would have 3 or 4 at a time!
I reckon you can get a much better personal loan rate, just shop around! I told the bank it was for home improvements, as IIRC the rate was higher for car loans!
OP - the thing to do is work this problem out in terms of what it costs you to pay for your transport.
If I put down a 3600 deposit on a 24 month lease, that's 150 a month that I'm paying towards the car on top of the monthly payment. And if it's a 36 month lease, it's 100.
The APR is the killer here. 7+% on a 24K car is a lot, and quite honestly the deals don't seem to be that good.
I would get some proper quotes and also investigate alternatives, you can get a lot of car for the sort of money you are paying, why not shop around some more?
Going for a vehicle costing more that depreciates far less with a lower APR based on the dealer needing to shift vehicles may work out far cheaper so it pays to shop around.
If I put down a 3600 deposit on a 24 month lease, that's 150 a month that I'm paying towards the car on top of the monthly payment. And if it's a 36 month lease, it's 100.
The APR is the killer here. 7+% on a 24K car is a lot, and quite honestly the deals don't seem to be that good.
I would get some proper quotes and also investigate alternatives, you can get a lot of car for the sort of money you are paying, why not shop around some more?
Going for a vehicle costing more that depreciates far less with a lower APR based on the dealer needing to shift vehicles may work out far cheaper so it pays to shop around.
a question regarding the PCP if your final figure originally quoted is less than the value that its actually worth do you get the difference back or is it lost.
e.g. £24000 car pay £3000 deposit and a final figure quoted at £10000 so over the 3 years you pay the difference £11000(plus interest) if the car is then valued at £12000 when the 3 years is up, you have paid an extra £2000(plus interest) over the 3 years do you get this back even if you hand the car back?
e.g. £24000 car pay £3000 deposit and a final figure quoted at £10000 so over the 3 years you pay the difference £11000(plus interest) if the car is then valued at £12000 when the 3 years is up, you have paid an extra £2000(plus interest) over the 3 years do you get this back even if you hand the car back?
Just a thought.......
Could you not keep your existing car, pay a little more into it say £1500 and loan approximately £10.5k over 2.5 years.
Then extend the warranty which I assume will be relatively cheap.
At the end you will then have a car worth approx £8-10k at a guess as opposed to £0.
Could you not keep your existing car, pay a little more into it say £1500 and loan approximately £10.5k over 2.5 years.
Then extend the warranty which I assume will be relatively cheap.
At the end you will then have a car worth approx £8-10k at a guess as opposed to £0.
Re the problem of guarenteed future values, no one is giving good rates simply because they don't want to get their fingers burnt if there's another crash-you just can't get high GFV's anymore (not a bad thing either as at least in theory you shouldn't get into negative equity either).
Your biggest issue is staying with VW, they now have you on their scheme but rest assured unless your sales team are lazy they will want to keep you on it.
Spend some time going round a few key competitors getting some quotes for competition (BMW are targeting new business very aggressively, as are Renault) & see what VW will do to match.
Ideally you're looking for a manufacturer who's going to make a large contribution to your finance costs, which they will do in order to get you hooked on their finance & (hopefully for them) get you as a repeat customer simply because "it's easier just to stay with them".
From there on you can look at the cold hard figures & see if leasing might be an option.
Whether you actually "want" a new car is entirely up to you.
Your biggest issue is staying with VW, they now have you on their scheme but rest assured unless your sales team are lazy they will want to keep you on it.
Spend some time going round a few key competitors getting some quotes for competition (BMW are targeting new business very aggressively, as are Renault) & see what VW will do to match.
Ideally you're looking for a manufacturer who's going to make a large contribution to your finance costs, which they will do in order to get you hooked on their finance & (hopefully for them) get you as a repeat customer simply because "it's easier just to stay with them".
From there on you can look at the cold hard figures & see if leasing might be an option.
Whether you actually "want" a new car is entirely up to you.
tba said:
a question regarding the PCP if your final figure originally quoted is less than the value that its actually worth do you get the difference back or is it lost.
e.g. £24000 car pay £3000 deposit and a final figure quoted at £10000 so over the 3 years you pay the difference £11000(plus interest) if the car is then valued at £12000 when the 3 years is up, you have paid an extra £2000(plus interest) over the 3 years do you get this back even if you hand the car back?
In theory the dealer (or any other dealer) could buy the car off you for the higher price and settle the GFV. In practice it's probably unlikely they'd be bothered as a straight buy unless there's a big difference.e.g. £24000 car pay £3000 deposit and a final figure quoted at £10000 so over the 3 years you pay the difference £11000(plus interest) if the car is then valued at £12000 when the 3 years is up, you have paid an extra £2000(plus interest) over the 3 years do you get this back even if you hand the car back?
However it's also unlikely that you wouldn't want another car, so any dealer can take the car off you in p/x and settle the GFV.
poing said:
Alternatively look for any online deals for a new PCP from people like Ling Cars (if you can ignore the terrible web site) and maybe even take those figures to your dealer to see if they can improve their offer?
http://www.lingscars.com/Volkswagen/Scirocco-leasi...
Ling focuses on personal leasing, although she will quote on any type of finance.http://www.lingscars.com/Volkswagen/Scirocco-leasi...
Bear in mind the OP's PCP deal is 15K a year so that'd be dearer than the cheapest leases.
I reckon there wouldn't be much in it either way for the same spec car, but leasing could be a bit cheaper overall. Bear in mind it's not as flexible as a PCP though - it can be expensive to get out of a lease early if you need to (you could be asked to pay all the utstanding payments) and there's usually no ability to directly buy the car at the end if you decide you wanted to hang on to it.
The OP's options seem to be centred around the best ways of having a VW Scirocco to drive.
I know nothing about car finance, but I do know that I'd be bored sick of a Scirocco after a couple of years so I'd want to take a good hard look at other cars rather than different ways to finance the same car.
However I fear this might lead to a "what car?" thread, which I hate.
I know nothing about car finance, but I do know that I'd be bored sick of a Scirocco after a couple of years so I'd want to take a good hard look at other cars rather than different ways to finance the same car.
However I fear this might lead to a "what car?" thread, which I hate.
Captain Muppet said:
The OP's options seem to be centred around the best ways of having a VW Scirocco to drive.
I know nothing about car finance, but I do know that I'd be bored sick of a Scirocco after a couple of years so I'd want to take a good hard look at other cars rather than different ways to finance the same car.
However I fear this might lead to a "what car?" thread, which I hate.
The OP has had this Scirocco for 2 years and likes it. So, not a what car thread.I know nothing about car finance, but I do know that I'd be bored sick of a Scirocco after a couple of years so I'd want to take a good hard look at other cars rather than different ways to finance the same car.
However I fear this might lead to a "what car?" thread, which I hate.
Froomee said:
Just a thought.......
Could you not keep your existing car, pay a little more into it say £1500 and loan approximately £10.5k over 2.5 years.
Then extend the warranty which I assume will be relatively cheap.
At the end you will then have a car worth approx £8-10k at a guess as opposed to £0.
Froomee - Good point. That is an option actually... I shall investigate how much a warranty extension is - as I have still got a further year from March 2013 - March 2014 left already ...Could you not keep your existing car, pay a little more into it say £1500 and loan approximately £10.5k over 2.5 years.
Then extend the warranty which I assume will be relatively cheap.
At the end you will then have a car worth approx £8-10k at a guess as opposed to £0.
Emeye said:
OP, are you planning on having kids or moving house any time soon? At least with a personal loan it is easier to sell the car if you want to restructure your finances, rather than trying to get out of a PCP midterm.
Another good point Emeye - no not at present, certainly not in next few years whilst Ive still got commitments like theseI hate PCP I think the only beneficiaries are the finance company, manufacturer and dealers. Most people are not in a position to make the final payment to own the car outright and therefore just end up in another PCP deal which is right where the dealer and manufacturer want you.
I've just done a deal on an 2012/61 plate Alfa Giulietta, saved £15,000 on the new price and I'll own the car at the end of 3 years. Much better value.
I've just done a deal on an 2012/61 plate Alfa Giulietta, saved £15,000 on the new price and I'll own the car at the end of 3 years. Much better value.
j4xxc said:
Another good point Emeye - no not at present, certainly not in next few years whilst Ive still got commitments like these
As suggested, I'd go test drive some other new cars locally to get a feel for the offers from other dealers with similar models. You may even find a car you like just as much or more and get an even better deal, especially if they have to hit their figures at the end of he month and have a car you want!I've not had a newish car for a while, but in the back of mags like autocar, whatcar, top gear, etc they used to have good current special dealer incentives and offers listed. Autocar probably the best if they still do it as it's weekly.
Oh, and I just remembered, I got an email from the AA today offering loans between £7500 and £14999 at 5.5% apr! Might not be the best but better than your bank rate, and you can negotiate finance rates with dealers. Get the best rate online then challenge the dealer to match or better it!
Gassing Station | General Gassing | Top of Page | What's New | My Stuff