Walk me through Skoda Finance options
Discussion
Mrs Brakes wants an Octavia Scout. I’ve been looking at used examples (£14k ish for 2years old / 30,000 miles), and was planning to buy using cash + trade in. We’ll probably keep it for 5+ years I expect.
However, looking on drivethedeal, carwow etc there are some very significant dealer contributions on new car, and the prices look attractive. The quoted price is c£21k for a new car (RRP £27,800 ish) however this price includes a Skoda UK contribution of £3000 but (here’s the catch) only if you take out PCP finance at 6.3% APR (“Solutions PCP”). You can put in a maximum of 30% deposit and the minimum term is 18 months I believe.
I’m not completely clear what sum the interest is applied to? Is it the total cost minus deposit or does the finance rate take into account the GFV as well?
Assuming I put in the maximum 30% deposit, I am left with £14,700 to finance. If I take the Skoda offer of finance, do I pay £14,700 * 1.06^1.5?
This works out (if I have done my sums correctly) as £1343 in interest. I don’t particularly want to pay this much interest since I have money in the bank (earning next to nothing in my ISA).
I realise I could ask the dealer a lot of these questions but a) I want to be armed with the facts before I negotiate and b) it’s 2018 so asking random people I’ve never met on an Internet forum is more socially acceptable than talking at someone’s actual face.
Questions:
Are my calculations roughly correct?
How flexible are the dealers likely to be with this 6.3% rate (I assume not very)?
With most finance stuff, there are cooling off periods etc. Can I cancel the finance after a couple of weeks and just pay off the settlement in cash?
I am a bit overwhelmed by the options and I need a steer in the right direction. Help please!
However, looking on drivethedeal, carwow etc there are some very significant dealer contributions on new car, and the prices look attractive. The quoted price is c£21k for a new car (RRP £27,800 ish) however this price includes a Skoda UK contribution of £3000 but (here’s the catch) only if you take out PCP finance at 6.3% APR (“Solutions PCP”). You can put in a maximum of 30% deposit and the minimum term is 18 months I believe.
I’m not completely clear what sum the interest is applied to? Is it the total cost minus deposit or does the finance rate take into account the GFV as well?
Assuming I put in the maximum 30% deposit, I am left with £14,700 to finance. If I take the Skoda offer of finance, do I pay £14,700 * 1.06^1.5?
This works out (if I have done my sums correctly) as £1343 in interest. I don’t particularly want to pay this much interest since I have money in the bank (earning next to nothing in my ISA).
I realise I could ask the dealer a lot of these questions but a) I want to be armed with the facts before I negotiate and b) it’s 2018 so asking random people I’ve never met on an Internet forum is more socially acceptable than talking at someone’s actual face.
Questions:
Are my calculations roughly correct?
How flexible are the dealers likely to be with this 6.3% rate (I assume not very)?
With most finance stuff, there are cooling off periods etc. Can I cancel the finance after a couple of weeks and just pay off the settlement in cash?
I am a bit overwhelmed by the options and I need a steer in the right direction. Help please!
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