Seeking PCP advice
Discussion
I’m going to start by acknowledging I’m a bit of an idiot and have made some terrible choices when faced with a car salesman. Please try and help alongside the disbelief and mockery. 
I’m in a PCP deal with SEAT (VWFS). I got a Leon FR when they were new to market on PCP, then went back a couple years later when they said they could get me into a new one.
First time I paid window price. They insisted it was a new model, no discounts. I didn’t have a deposit, was paying ~£385/month. Salesman allegedly struggled to get this low, and had put it through at 5k miles a year, on the basis I’d likely keep or trade rather than hand back. I was none the wiser, it was 2013 and I had new car blindness.
2 years in, they invite me back in. I move up from the 150 to the 184 with DSG and fancy metallic. Dealer can’t give me discount this time because I’m in negative equity, they say they’ll write that off in lieu of discount. Again, minimal deposit and monthlies of ~£435, explained away by the increased spec. I like the car and was a bit oblivious, away we go. Same 5k miles.
That was early 2015. A month or two later I start getting the feeling I’ve been dry shafted but I’m past the 14 days. Look more closely at the credit agreement and see there’s a part ex value that doesn’t clear the existing finance, the balance of which is tacked on the new agreement. So I’ve been done. Much self-flagellation, have resented the car as a result. Decided to sit it out and never trust myself in a dealership alone again.
Changed job last year, I was always going to exceed 5k/year, but at 7p it wasn’t a big deal. I’ve started doing 15k/year, so I’ve used my 4 years’ mileage already halfway through the contract.
Did I mention I was under the impression this was a 3 year deal and it’s actually 4? I believed what I was told, I know how stupid that is, moving on!
So, I subsequently spend a lot more time on this forum looking at the deals, reading how other people have handled PCP, voluntary termination, excess mileage etc. - I’ve done some math based on the total credit amount and my payments, I reckon I’m at 50% end of June this year, at which point I want to VT, tell them to whistle for mileage and forget the whole sorry episode.
Obviously this leaves me with nothing, but in a position to go get into a better deal. I’m edgy about another PCP when there’s great leases available, but my mileage and some of the PCP offers I’m seeing right now for mid year delivery leaves me a bit confused.
I can live with £3-400 a month, I’m now in a position where I can put £1-2k deposit down.
I’d love a quick RWD/4WD estate, or 5 door at a push. Golf R, 340i Msport touring, 330d Msport... Current PCP on M140i would work, but they’re 8k deals. I could go Approved Used. Or just buy a cheap workhorse as a stopgap and die a little more inside!
When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Thanks in advance!
I’m in a PCP deal with SEAT (VWFS). I got a Leon FR when they were new to market on PCP, then went back a couple years later when they said they could get me into a new one.
First time I paid window price. They insisted it was a new model, no discounts. I didn’t have a deposit, was paying ~£385/month. Salesman allegedly struggled to get this low, and had put it through at 5k miles a year, on the basis I’d likely keep or trade rather than hand back. I was none the wiser, it was 2013 and I had new car blindness.
2 years in, they invite me back in. I move up from the 150 to the 184 with DSG and fancy metallic. Dealer can’t give me discount this time because I’m in negative equity, they say they’ll write that off in lieu of discount. Again, minimal deposit and monthlies of ~£435, explained away by the increased spec. I like the car and was a bit oblivious, away we go. Same 5k miles.
That was early 2015. A month or two later I start getting the feeling I’ve been dry shafted but I’m past the 14 days. Look more closely at the credit agreement and see there’s a part ex value that doesn’t clear the existing finance, the balance of which is tacked on the new agreement. So I’ve been done. Much self-flagellation, have resented the car as a result. Decided to sit it out and never trust myself in a dealership alone again.
Changed job last year, I was always going to exceed 5k/year, but at 7p it wasn’t a big deal. I’ve started doing 15k/year, so I’ve used my 4 years’ mileage already halfway through the contract.
Did I mention I was under the impression this was a 3 year deal and it’s actually 4? I believed what I was told, I know how stupid that is, moving on!
So, I subsequently spend a lot more time on this forum looking at the deals, reading how other people have handled PCP, voluntary termination, excess mileage etc. - I’ve done some math based on the total credit amount and my payments, I reckon I’m at 50% end of June this year, at which point I want to VT, tell them to whistle for mileage and forget the whole sorry episode.
Obviously this leaves me with nothing, but in a position to go get into a better deal. I’m edgy about another PCP when there’s great leases available, but my mileage and some of the PCP offers I’m seeing right now for mid year delivery leaves me a bit confused.
I can live with £3-400 a month, I’m now in a position where I can put £1-2k deposit down.
I’d love a quick RWD/4WD estate, or 5 door at a push. Golf R, 340i Msport touring, 330d Msport... Current PCP on M140i would work, but they’re 8k deals. I could go Approved Used. Or just buy a cheap workhorse as a stopgap and die a little more inside!
When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Thanks in advance!
Omi said:
I’m going to start by acknowledging I’m a bit of an idiot and have made some terrible choices when faced with a car salesman. Please try and help alongside the disbelief and mockery.
I’m in a PCP deal with SEAT (VWFS). I got a Leon FR when they were new to market on PCP, then went back a couple years later when they said they could get me into a new one.
First time I paid window price. They insisted it was a new model, no discounts. I didn’t have a deposit, was paying ~£385/month. Salesman allegedly struggled to get this low, and had put it through at 5k miles a year, on the basis I’d likely keep or trade rather than hand back. I was none the wiser, it was 2013 and I had new car blindness.
2 years in, they invite me back in. I move up from the 150 to the 184 with DSG and fancy metallic. Dealer can’t give me discount this time because I’m in negative equity, they say they’ll write that off in lieu of discount. Again, minimal deposit and monthlies of ~£435, explained away by the increased spec. I like the car and was a bit oblivious, away we go. Same 5k miles.
That was early 2015. A month or two later I start getting the feeling I’ve been dry shafted but I’m past the 14 days. Look more closely at the credit agreement and see there’s a part ex value that doesn’t clear the existing finance, the balance of which is tacked on the new agreement. So I’ve been done. Much self-flagellation, have resented the car as a result. Decided to sit it out and never trust myself in a dealership alone again.
Changed job last year, I was always going to exceed 5k/year, but at 7p it wasn’t a big deal. I’ve started doing 15k/year, so I’ve used my 4 years’ mileage already halfway through the contract.
Did I mention I was under the impression this was a 3 year deal and it’s actually 4? I believed what I was told, I know how stupid that is, moving on!
So, I subsequently spend a lot more time on this forum looking at the deals, reading how other people have handled PCP, voluntary termination, excess mileage etc. - I’ve done some math based on the total credit amount and my payments, I reckon I’m at 50% end of June this year, at which point I want to VT, tell them to whistle for mileage and forget the whole sorry episode.
Obviously this leaves me with nothing, but in a position to go get into a better deal. I’m edgy about another PCP when there’s great leases available, but my mileage and some of the PCP offers I’m seeing right now for mid year delivery leaves me a bit confused.
I can live with £3-400 a month, I’m now in a position where I can put £1-2k deposit down.
I’d love a quick RWD/4WD estate, or 5 door at a push. Golf R, 340i Msport touring, 330d Msport... Current PCP on M140i would work, but they’re 8k deals. I could go Approved Used. Or just buy a cheap workhorse as a stopgap and die a little more inside!
When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Thanks in advance!
Wow, I’d be crying if I were you. Buy a work horse, £8k Golf Diesel and run it into the ground I’m in a PCP deal with SEAT (VWFS). I got a Leon FR when they were new to market on PCP, then went back a couple years later when they said they could get me into a new one.
First time I paid window price. They insisted it was a new model, no discounts. I didn’t have a deposit, was paying ~£385/month. Salesman allegedly struggled to get this low, and had put it through at 5k miles a year, on the basis I’d likely keep or trade rather than hand back. I was none the wiser, it was 2013 and I had new car blindness.
2 years in, they invite me back in. I move up from the 150 to the 184 with DSG and fancy metallic. Dealer can’t give me discount this time because I’m in negative equity, they say they’ll write that off in lieu of discount. Again, minimal deposit and monthlies of ~£435, explained away by the increased spec. I like the car and was a bit oblivious, away we go. Same 5k miles.
That was early 2015. A month or two later I start getting the feeling I’ve been dry shafted but I’m past the 14 days. Look more closely at the credit agreement and see there’s a part ex value that doesn’t clear the existing finance, the balance of which is tacked on the new agreement. So I’ve been done. Much self-flagellation, have resented the car as a result. Decided to sit it out and never trust myself in a dealership alone again.
Changed job last year, I was always going to exceed 5k/year, but at 7p it wasn’t a big deal. I’ve started doing 15k/year, so I’ve used my 4 years’ mileage already halfway through the contract.
Did I mention I was under the impression this was a 3 year deal and it’s actually 4? I believed what I was told, I know how stupid that is, moving on!
So, I subsequently spend a lot more time on this forum looking at the deals, reading how other people have handled PCP, voluntary termination, excess mileage etc. - I’ve done some math based on the total credit amount and my payments, I reckon I’m at 50% end of June this year, at which point I want to VT, tell them to whistle for mileage and forget the whole sorry episode.
Obviously this leaves me with nothing, but in a position to go get into a better deal. I’m edgy about another PCP when there’s great leases available, but my mileage and some of the PCP offers I’m seeing right now for mid year delivery leaves me a bit confused.
I can live with £3-400 a month, I’m now in a position where I can put £1-2k deposit down.
I’d love a quick RWD/4WD estate, or 5 door at a push. Golf R, 340i Msport touring, 330d Msport... Current PCP on M140i would work, but they’re 8k deals. I could go Approved Used. Or just buy a cheap workhorse as a stopgap and die a little more inside!
When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Thanks in advance!
WonkeyDonkey said:
£21k to rent a seat. Wow.
I've calculated it at just under £25k over 5 years.Is £5k per year for 2 x new cars such an outrageous sum? It might seem steep for a Seat, but I've paid about the same for my Q5 over only 3 years, and I don't consider that I got a particularly bad deal in my case.
Cars cost money to buy, maintain & use, and new cars will generally cost more so than running old cars.
VAGLover said:
Wow, I’d be crying if I were you. Buy a work horse, £8k Golf Diesel and run it into the ground
What about those people that prefer newer cars rather than running workhorse sheds into the ground, with the inevitable accompanying cost and inconvenience factors, that running a shed would entail.Mandat said:
I've calculated it at just under £25k over 5 years.
Is £5k per year for 2 x new cars such an outrageous sum? It might seem steep for a Seat, but I've paid about the same for my Q5 over only 3 years, and I don't consider that I got a particularly bad deal in my case.
Cars cost money to buy, maintain & use, and new cars will generally cost more so than running old cars.
Honestly I don't really know as I've never leased, but seeing as a brand new Leon fr starts from £19k otr I'd have thought it was. Is £5k per year for 2 x new cars such an outrageous sum? It might seem steep for a Seat, but I've paid about the same for my Q5 over only 3 years, and I don't consider that I got a particularly bad deal in my case.
Cars cost money to buy, maintain & use, and new cars will generally cost more so than running old cars.
Q5 is in a different price league completely to a Leon isn't it?
We finally got out of a bad PCP deal and on reflection would be very reluctant to do it again.
When looking at our options to get out we found selling the car to WBAC as the better option. We 'lost less' money by selling and paying off the finance, cost us around £800 but got us out of a very silly monthly.
If we're ever going to finance again I'd lease as there is much more transparency about the cost.
I feel for you having been there myself, look at all your options and the outstanding balance and just take a measured approach to settling it or walking away via VT.
When looking at our options to get out we found selling the car to WBAC as the better option. We 'lost less' money by selling and paying off the finance, cost us around £800 but got us out of a very silly monthly.
If we're ever going to finance again I'd lease as there is much more transparency about the cost.
I feel for you having been there myself, look at all your options and the outstanding balance and just take a measured approach to settling it or walking away via VT.
Mandat said:
What about those people that prefer newer cars rather than running workhorse sheds into the ground, with the inevitable accompanying cost and inconvenience factors, that running a shed would entail.
I agree, New is best. But it appears OP can’t seem to strike a good deal on buying new, so best to stay awayFirstly you were not ripped off - you were sold vehicles at full list price - just like Tesco sell baked beans at full price - why discount a product if the customer accepts the deal
It is incumbent on the buyer to check the deal - not their fault if you signed without doing so.
You have a bad deal - Is VT at the first opportunity, draw a line in the sand and make sure you seek advice on any future deal presented to you before you sign it
It is incumbent on the buyer to check the deal - not their fault if you signed without doing so.
You have a bad deal - Is VT at the first opportunity, draw a line in the sand and make sure you seek advice on any future deal presented to you before you sign it
Omi said:
I’d love a quick RWD/4WD estate, or 5 door at a push. Golf R, 340i Msport touring, 330d Msport... Current PCP on M140i would work, but they’re 8k deals. I could go Approved Used. Or just buy a cheap workhorse as a stopgap and die a little more inside!
When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Personally I'm a great fan of buying 'nearly new' (6-9 months old) - if you plan on doing lots of miles and holding on to a car for a while, it's always stacked up better financially for me.When you’ve finished reminding me how dumb I am, I’d love to hear PH’s collective thoughts on what you might do if you were in this situation.
Given you can seemingly afford some pretty high monthly payments, I'd look at a personal loan - there are a few options around 3% APR at the moment, and £15k over 3 years would be £435 per month (approx). Buy something that's already suffered it's first year depreciation, and if you decide to switch cars again, negative equity shouldn't be an issue.
My head would tell me to make do with a cheap banger for a year or so and build up a nice deposit to go with whatever finance I needed, but entirely appreciate your heart is probably saying to jump into something much nicer as soon as you can.
tickedon said:
Personally I'm a great fan of buying 'nearly new' (6-9 months old) - if you plan on doing lots of miles and holding on to a car for a while, it's always stacked up better financially for me.
Keep your eyes open though - with the deals around on new cars they can be cheaper than nearly-new - VAG brands, especially, are well known for this.Mandat said:
VAGLover said:
Wow, I’d be crying if I were you. Buy a work horse, £8k Golf Diesel and run it into the ground
What about those people that prefer newer cars rather than running workhorse sheds into the ground, with the inevitable accompanying cost and inconvenience factors, that running a shed would entail.Integroo said:
An 8k Golf diesel is not a shed. You could spent ten grand on a couple of year old sub 15k miles Civic/Golf/Focus with a warranty and low maintenance costs.
Any car that is being run into the ground will, by definition, become a shed. Some people simply prefer to avoid that end of the car market.Sheepshanks said:
Keep your eyes open though - with the deals around on new cars they can be cheaper than nearly-new - VAG brands, especially, are well known for this.
Indeed. I went looking at cars for my mum at Christmas, and it was indeed better to buy new than nearly-new on VAG brands, and also on the Mazda 3 she ended up in.In my case, buying 9 months old saved me £10k vs the cheapest carwow price!
Your contract should state the sum of repayments equivalent to 50% of the amount financed.
It would be wise to phone VWFS and confirm your maths. If you rolled negative equity in to the deal, I fear you may find that only hit 50% right at the end of the term (if at all).
Also, VWFS may pursue you for the excess mileage at the point of VT. It's really not black and white and finance companies are now sensitive to this as more and more punters are using a low mileage term to reduce monthlies and then VT to avoid the penalties. Quite how far VWFS may be prepared to chase (if at all), i'm not certain.
Another option could be to sell the car and settle the outstanding finance yourself. This really depends on how much of a hole you're in.
Despite resenting the car, don't blow your brains out just to be rid of it. Look at all the options, including seeing out the PCP. Go for whichever costs you less overall.
It would be wise to phone VWFS and confirm your maths. If you rolled negative equity in to the deal, I fear you may find that only hit 50% right at the end of the term (if at all).
Also, VWFS may pursue you for the excess mileage at the point of VT. It's really not black and white and finance companies are now sensitive to this as more and more punters are using a low mileage term to reduce monthlies and then VT to avoid the penalties. Quite how far VWFS may be prepared to chase (if at all), i'm not certain.
Another option could be to sell the car and settle the outstanding finance yourself. This really depends on how much of a hole you're in.
Despite resenting the car, don't blow your brains out just to be rid of it. Look at all the options, including seeing out the PCP. Go for whichever costs you less overall.
tickedon said:
Indeed. I went looking at cars for my mum at Christmas, and it was indeed better to buy new than nearly-new on VAG brands, and also on the Mazda 3 she ended up in.
In my case, buying 9 months old saved me £10k vs the cheapest carwow price!
I've noticed this also. Currently looking for an Octavia VRS and AutoEbid is saying i can get one for £19.5k new, but on the skoda site the 'approved used' ones less than 12 months old start from around £21k!In my case, buying 9 months old saved me £10k vs the cheapest carwow price!
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