VW PCP end of terms option
Discussion
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?
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?
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
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
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.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 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.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
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.
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!
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!
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.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!
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.
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