Is this a good PCP deal?

[P4D]

Hey all,

I’m looking at the new Focus ST’s.

There are a few 0% deals about on 27 month PCP. Just trying to gauge if it’s decent given todays economy etc.

List price - £34,451
Deposit - £4000
Monthlies - £319
Duration - 27 months
Final payment - £22,157
Mileage is 6k pa.

I’m assuming the car will be worth more than £22,751 after two years, going off examples on Autotrader.

Cheers

Edited by P4D on Saturday 2nd September 10:51

[MDMA .]

£467 a month to travel 16 miles a day seems a lot to me.

[Square Leg]

MDMA . said:

£467 a month to travel 16 miles a day seems a lot to me.

Unless you can be sure that you’re not going to hand the car back then the mileage is irrelevant.
I’ve always had the min mileage when I’ve had a pcp and always gone way over - makes no odds if you’re trading the car in.

[P4D]

Square Leg said:

Unless you can be sure that you’re not going to hand the car back then the mileage is irrelevant.
I’ve always had the min mileage when I’ve had a pcp and always gone way over - makes no odds if you’re trading the car in.

If I was to get one, I’d probably sell privately as I’m sure it’ll be worth more than the GFV.

[emperorburger]

Have a play around with sites like WBAC, which probably give a fairer indication of values vs retail.

Currently WBAC are offering around £18.5k for a two year old with mileage similar to your PCP offer.

[MDMA .]

Cheapest 2 year old (2021) on AT at the moment is less than £20k, trade too. The way things are going at the moment, I think there’s more chance of cars losing value than retaining it.
But if it’s what you like and can afford it, what does it matter

[GT4RS]

P4D said:

Hey all,

I’m looking at the new Focus ST’s.

There are a few 0% deals about on 27 month PCP. Just trying to gauge if it’s decent given todays economy etc.

List price - £34,451
Deposit - £4000
Monthlies - £319
Duration - 27 months
Final payment - £22,157
Mileage is 6k pa.

I’m assuming the car will be worth more than £22,751 after two years, going off examples on Autotrader.

Cheers

Edited by P4D on Saturday 2nd September 10:51

Seems expensive motoring to me with that low GFV, looking at the market it certainly won’t be worth more than that after two years.

They are offering O% as they can’t shift them at the current retail price.

[Crumpet]

That feels like it should be available with 10% off AND 0% finance. So more like £4k deposit and £180 a month. Then I think you’d call it a decent deal.

[Actual]

I have done a couple of Ford 0% PCP deals and as I have always purchased the car at the end of the deal I don't see how I can lose unless they paid me and one one occasion they did just for taking 0%.

[Fiisch]

Square Leg said:

Unless you can be sure that you’re not going to hand the car back then the mileage is irrelevant.
I’ve always had the min mileage when I’ve had a pcp and always gone way over - makes no odds if you’re trading the car in.

Err what? Of course it does! Higher mileage than what you've quoted means the car you're trading in is worth less, which will push the cost up of the new car you're trading in for.

It's dealer jiggery pokery hiding the additional cost to get you into a new car, but there's no such thing as a free lunch.

The only time going over the mileage might not cost you is if you voluntarily terminate the agreement once you've paid 50% of the car's value new. While the finance company might attempt to charge you excess mileage, there's a valid legal claim to say you can refuse to pay a penny more so long as you've paid 50%, so with a bit of back-and-forth you might avoid the excess mileage fee...

As to the OP's original question - it's a reasonable PCP deal, made more attractive by the 0% finance, which is rare in the current climate - for some vague context, I paid £1500 down £467*36 on an FK2 Type R (new) in 2016 over 3 years for 6k miles. I loved that machine, wish I'd never got rid, but in hindsight I'd have been much better running something much cheaper for my low annual mileage at the time and putting the money elsewhere.

£4000 + 27 * £319 = £12,613, or around 90p / mile for the 28 months you'll have the car (assuming you're bang on the mileage at 14,000 miles).

I struggle with cars like the Focus ST - I'm sure it's a good car, but there'd always be a part of me wishing I had the RS. Personally, I'd have a run-of-the-mill Focus or a lightly used RS. However, if you really want a new car and the Focus ST really does it for you, I'd say that's a decent enough deal.

[ChrisH72]

MDMA . said:

Cheapest 2 year old (2021) on AT at the moment is less than £20k, trade too. The way things are going at the moment, I think there’s more chance of cars losing value than retaining it.
But if it’s what you like and can afford it, what does it matter

The sub 20k ones are diesel though. 2.3 petrol starts at 25k for a 2 year old one. I'm guessing OP is looking at petrol?

Doesn't seem too bad to me. For a lowish mileage I'd just get a cheaper used car but it wouldn't do for everyone.

[Square Leg]

Fiisch said:

Square Leg said:

Unless you can be sure that you’re not going to hand the car back then the mileage is irrelevant.
I’ve always had the min mileage when I’ve had a pcp and always gone way over - makes no odds if you’re trading the car in.

Err what? Of course it does! Higher mileage than what you've quoted means the car you're trading in is worth less, which will push the cost up of the new car you're trading in for.

It's dealer jiggery pokery hiding the additional cost to get you into a new car, but there's no such thing as a free lunch.

The only time going over the mileage might not cost you is if you voluntarily terminate the agreement once you've paid 50% of the car's value new. While the finance company might attempt to charge you excess mileage, there's a valid legal claim to say you can refuse to pay a penny more so long as you've paid 50%, so with a bit of back-and-forth you might avoid the excess mileage fee...

As to the OP's original question - it's a reasonable PCP deal, made more attractive by the 0% finance, which is rare in the current climate - for some vague context, I paid £1500 down £467*36 on an FK2 Type R (new) in 2016 over 3 years for 6k miles. I loved that machine, wish I'd never got rid, but in hindsight I'd have been much better running something much cheaper for my low annual mileage at the time and putting the money elsewhere.

£4000 + 27 * £319 = £12,613, or around 90p / mile for the 28 months you'll have the car (assuming you're bang on the mileage at 14,000 miles).

I struggle with cars like the Focus ST - I'm sure it's a good car, but there'd always be a part of me wishing I had the RS. Personally, I'd have a run-of-the-mill Focus or a lightly used RS. However, if you really want a new car and the Focus ST really does it for you, I'd say that's a decent enough deal.

Your bolded bit.
I’ve done it with every pcp I’ve had, and it’s not been an issue ever.
Settlement has always been lower than the trade in value.

Just don’t VT or hand the car back to the finance company.

[worsy]

Crumpet said:

That feels like it should be available with 10% off AND 0% finance. So more like £4k deposit and £180 a month. Then I think you’d call it a decent deal.

That's already got 10% off. List on these is 37k+

[dundarach]

Your call, I've never understood buying new personally.

https://www.autotrader.co.uk/car-details/202309011...

2017 ST 44,000 miles, £10,700

Less your £4000 deposit

£6,700

Sainsbury's Bank, £299 a month for 2 years and the cars yours.

That's how I'd do it, with your cash, but then again, I'm not you and don't mind secondhand!!

Just another view.

[C70R]

dundarach said:

Your call, I've never understood buying new personally.

https://www.autotrader.co.uk/car-details/202309011...

2017 ST 44,000 miles, £10,700

Less your £4000 deposit

£6,700

Sainsbury's Bank, £299 a month for 2 years and the cars yours.

That's how I'd do it, with your cash, but then again, I'm not you and don't mind secondhand!!

Just another view.

That's not the same car...

[dundarach]

C70R said:

That's not the same car...

No because this one is secondhand and being used as an example!

However thank you for your valuable contribution.

[C70R]

dundarach said:

C70R said:

That's not the same car...

No because this one is secondhand and being used as an example!

However thank you for your valuable contribution.

No because you've linked a 1.0 ST-Line, rather than the 2.3 ST that the OP is actually referring to.

However thank you for your valuable contribution.

[P4D]

C70R said:

dundarach said:

C70R said:

That's not the same car...

No because this one is secondhand and being used as an example!

However thank you for your valuable contribution.

No because you've linked a 1.0 ST-Line, rather than the 2.3 ST that the OP is actually referring to.

However thank you for your valuable contribution.

Correct!

I’ve managed to get a ‘better’ deal on a track pack one.

26 x 349
Deposit of £4000.

The dealer was saying they should hold their value as they’re stopping production of the focus?

[P4D]

MDMA . said:

Cheapest 2 year old (2021) on AT at the moment is less than £20k, trade too. The way things are going at the moment, I think there’s more chance of cars losing value than retaining it.
But if it’s what you like and can afford it, what does it matter

They’re diesels mate.

I’ve had a look at the cheapest two year old petrol 2.3 with a max of 15k miles and they’re all showing £28k+.

[dundarach]

C70R said:

No because you've linked a 1.0 ST-Line, rather than the 2.3 ST that the OP is actually referring to.

However thank you for your valuable contribution.

Oh whatever!